The Office of the U.S. Trade Representative said that since Turkey agreed to remove its digital services taxes before the international tax agreement takes effect, "the United States will terminate the currently-suspended additional duties on goods of Turkey that had been adopted in the DST Section 301 investigation." The goods that could have been targeted with additional 25% tariffs were in 32 subheadings, and there was more than $300 million worth of the products imported from Turkey in 2019 (see 2106020047).
Section 301 (too broad)
At a hearing on supply chain challenges, the committee chairman described deregulation and disinvestment as two root causes, panelists cited overregulation and labor shortages, and there was intense disagreement between the parties on whether the surge in demand for imports was the result of foolish policy or wise economic support for households during the pandemic.
The China package passed by the Senate -- which includes instructions to reopen Section 301 tariff exclusion applications, and a renewal of both the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill -- will go to a conference committee to reconcile the Senate bill with various pieces of House legislation, one of which changes the burden of proof on goods from Xinjiang. None of the House bills touches on tariffs, and none offers funding for chipmakers, a centerpiece of the Senate bill. Senate Majority Leader Chuck Schumer, D-N.Y. had earlier planned to attach the China package to the must-past National Defense Authorization Act, but after Republican opposition, they decided this was a better way to get the House-Senate talks going.
The Office of the U.S. Trade Representative posted a list on its website of the 18 Section 301 tariff exclusions for COVID treatment products that are set to expire Nov. 30 (see 2111100037).
International Trade Today is providing readers with the top stories from Nov. 8-12 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The following lawsuits were filed at the Court of International Trade during the week of Nov. 8-14:
Treasury Secretary Janet Yellen, acknowledging that removing Section 301 tariffs on Chinese goods would make some difference in inflation, didn't directly answer a question about whether they should stay, but said that U.S. Trade Representative Katherine Tai is "revisiting the phase one trade deal and recognizing requests to reduce tariffs in some areas." During a "Face the Nation" appearance Nov. 14, Yellen was also asked what the Biden administration could do to unclog the supply chain. "We have been talking with the operators of ports in Los Angeles, in Long Beach, in Savannah, trying to understand why there are such backlogs of ships waiting to off-load their goods."
The three-judge panel at the U.S. Court of International Trade presiding over the Section 301 litigation scheduled oral argument in the HMTX Industries-Jasco Products sample case for Feb. 1, 2022, at 10 a.m. in the court's Ceremonial Courtroom in New York, an order entered Nov. 12 in master case docket 21-cv-52 said. Chief Judge Mark Barnett had asked lawyers from both sides at a virtual status conference Nov.10 to email the court by Nov. 12 about schedule conflicts they had in January and February.
The Office of the U.S. Trade Representative will extend most of the exclusions from Section 301 China tariffs on goods used to treat COVID-19 for six months, it said in a notice posted on the agency's website. For the 81 exclusions being extended, the new expiration date is May 31, 2022. All the exclusions were slated to expire Nov. 14, but USTR is allowing a "transition period" and that expiration date will be Nov. 30, it said.
Correction: The Office of the U.S. Trade Representative will extend the expiration date for 81 of 99 previously granted Section 301 tariff exclusions for six months to May 31, it said in a notice posted on the agency's website. All the exclusions were slated to expire Nov. 14, but USTR is allowing a "transition period" and the exclusions not being extended will expire Nov. 30, it said.