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U.S.-China Trade War - Are You Keeping Up with Section 301 Tariffs?

Posted by Robert W. Snyder | Oct 01, 2019 | 0 Comments

​On April 6, 2018, the U.S. Trade Representative (“USTR”) gave notice of its determination that the “acts, policies, and practices of the Government of China related to technology transfer, intellectual property, and innovation covered in the [Section 301] investigation are unreasonable or discriminatory and burden or restrict U.S. commerce.” [1] As a result, the USTR has imposed increased tariffs on certain products imported from China, as set out in the chart below.

Section 301 Tariffs At a Glance

Product Lists Effective Date Current Tariff Value of Products
List 1 [2] July 6, 2018 25%* $34 Billion
List 2 [3] August 23, 2018 25%* $16 Billion
List 3 [4][5] September 24, 2018

For goods exported prior to May 10, 2019 AND entered into the U.S. before June 15, 2019: 10% [6]

For all other products subject to List 3: 25%*

$200 Billion
List 4A [7][8] September 1, 2019 15% $300 Billion (Total Combined Value for List 4)
List 4B [9][10] December 15, 2019 15% $300 Billion (Total Combined Value for List 4)

*A proposed increase from 25% to 30% for Lists 1, 2, and 3 was scheduled for October 1, 2019.[11] However, pursuant to comments made by Secretary Mnuchin, these increases will not be implemented, pending the "phase one" trade agreement between the United States and China (as announced on October 11, 2019).[12]

Section 301 Tariffs Timeline

LIST 4

August 20, 2019 – The USTR imposed a 10% tariff on List 4A products (September 1, 2019 effective date) and List 4B products (December 15, 2019 effective date). [13] Products subject to List 4 can be found here.

August 30, 2019 – List 4 tariffs are increased from 10% to 15%. The increase applies to List 4A products, effective September 1, 2019, and to List 4B products, effective December 15, 2019. [14]

January 31, 2020  – Deadline to request a product exclusion for List 4A tariffs. [15]

LIST 3

September 21, 2018 – The USTR imposed a 10% tariff on List 3 products (September 24, 2018 effective date). [16] Additionally, it was announced that the tariff would increase to 25%, effective January 1, 2019. [17] Products subject to List 3 can be found here.

September 28, 2018 – The USTR modified its September 21, 2018 announcement to ensure conformity in its subheadings of the Harmonized Tariff Schedule of the United States (“HTS”), effective October 1, 2018, per the Presidential Proclamation of July 30, 2018 (Proclamation 9771). [18]

December 19, 2018 – The 25% tariff increase is postponed until March 2, 2019. [19]

March 5, 2019 – The USTR announced that the 25% tariff increase is postponed “until further notice.” [20]

May 9, 2019 – List 3 tariffs are increased from 10% to 25%, effective May 10, 2019. [21]

May 15, 2019 – The USTR announced an interim period for certain products exported prior to May 10, 2019 and entered into the U.S. prior to June 1, 2019, that are not subject to the increased 25% tariff duty (products imported during this interim period remain subject to the original 10% tariff). [22]

June 10, 2019 – The USTR extended the interim period end date from June 1, 2019 to June 15, 2019. The updated interim period applies to products that are exported prior to May 10, 2019, so long as these products are entered into the U.S. prior to June 15, 2019. [23]

September 30, 2019 – Deadline to request a product exclusion for List 3 tariffs. [24]

Exclusions granted for List 3 can be found here .

LIST 2

August 16, 2018 – The USTR imposed a 25% tariff on List 2 products. [25] Products subject to List 2 can be found here.

December 18, 2018 – Deadline to request a product exclusion for List 2 tariffs. [26]

Exclusions granted for List 2 can be found here .

LIST 1

June 20, 2018 – The USTR imposed a 25% tariff on List 1 products. [27] Products subject to List 1 can be found here.

October 9, 2018 – Deadline to request a product exclusion for List 1 tariffs. [28]

Exclusions granted for List 1 can be found here .

HTS Search

To check whether your products are affected by the Section 301 tariffs, please use the following link: HTS Search.

In order to use this link, you must know your HTS Subheading, which can be found on your CF 7501. If you do not know your HTS Subheading, please contact your supplier, distributor, or customs broker.

Section 301 Exclusion Requests

An importer or an interested party (such as a trade association) may submit a Section 301 tariff exclusion request, if the product exclusion request period is open for that list. If an importer is granted an exclusion, such exclusion is not limited specifically to that importer or manufacturer, as the exclusion is product-specific. [29] Requesters must address, at a minimum, the following criteria: [30]

  1. Whether the product is only available (i.e. can only be manufactured or purchased) in China;
  2. Whether the increased tariffs will cause severe economic harm to the requester or other U.S. interests; and
  3. Whether the product is strategically important to China's “Made in 2025” program.[31]

For further assistance in requesting an exclusion, or in otherwise mitigating the impact of this tariff increase through review of tariff classification, country of origin, or other import matters, please contact our office for a consultation.

This article is for informational purposes, is not intended to constitute legal advice, and may be considered advertising under applicable state laws.

[1]  Notice of Determination and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 Fed. Reg. 14,906 (Apr. 6, 2018),  https://www.govinfo.gov/content/pkg/FR-2018-04-06/pdf/2018-07119.pdf.

[2]  Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 Fed. Reg. 28,710 (Jun. 20, 2018),  https://ustr.gov/sites/default/files/2018-13248.pdf.

[3]  Notice of Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 Fed. Reg. 40,823 (Aug. 16, 2018),  https://ustr.gov/sites/default/files/enforcement/301Investigations/2018-17709.pdf.

[4]  Notice of Modification of Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 Fed. Reg. 47,974 (Sep. 21, 2018),  https://www.govinfo.gov/content/pkg/FR-2018-09-21/pdf/2018-20610.pdf.

[5]  Notice of Modification of Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 84 Fed. Reg. 20,459 (May 9, 2019),  https://ustr.gov/sites/default/files/enforcement/301Investigations/84_FR_20459.pdf.

[6]  Additional Implementing Modification to Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 84 Fed. Reg. 26,930 (Jun. 10, 2019),  https://ustr.gov/sites/default/files/enforcement/301Investigations/Additional_Implementing_Modification_to_Section_301_Action.pdf.

[7]  Notice of Modification of Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 84 Fed. Reg. 43,304 (Aug. 20, 2019),  https://www.govinfo.gov/content/pkg/FR-2019-08-20/pdf/2019-17865.pdf .

[8]  Notice of Modification of Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 84 Fed. Reg. 45,821 (Aug. 30, 2019),  https://ustr.gov/sites/default/files/enforcement/301Investigations/Notice_of_Modification%E2%80%93August_2019.pdf.

[9]  n7.

[10]  n8.

[11]  Request for Comments Concerning Proposed Modification of Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 84 Fed. Reg. 46, 212 (Sep. 3, 2019),  https://www.govinfo.gov/content/pkg/FR-2019-09-03/pdf/2019-18946.pdf.

[12]  United States, Oval Office, Remarks by President Trump and Vice Premier Liu He of the People's Republic of China in a Meeting (Oct. 11, 2019),  https://www.whitehouse.gov/briefings-statements/remarks-president-trump-vice-premier-liu-peoples-republic-china-meeting/.

[13]  n7.

[14]  n8.

[15]  Procedures for Requests To Exclude Particular Products From the August 2019 Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 84 Fed. Reg. 57,144 (Oct. 24, 2019), https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-23181.pdf.

[16]  n4.

[17]  n4.

[18]  Conforming Amendment and Modification to Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual property, and Innovation, 83 Fed. Reg. 49,153 (Sep. 28, 2018),  https://www.govinfo.gov/content/pkg/FR-2018-09-28/pdf/2018-21303.pdf.

[19]  Notice of Modification of Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 Fed. Reg. 65, 198 (Dec. 19, 2018),  https://ustr.gov/sites/default/files/enforcement/301Investigations/83_FR_65198.pdf.

[20]  Notice of Modification of Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 84 Fed. Reg. 7,966 (Mar. 5, 2019),  https://ustr.gov/sites/default/files/enforcement/301Investigations/84_FR_7966.pdf.

[21]  n5.

[22]  Implementing Modification to Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 84 Fed. Reg. 21,892 (May 15, 2019),  https://ustr.gov/sites/default/files/enforcement/301Investigations/2019-09990.pdf.

[23]  n5.

[24]  Procedures for Requests To Exclude Particular Products From the September 2018 Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 84 Fed. Reg. 29,576 (Jun. 24, 2019),  https://ustr.gov/sites/default/files/enforcement/301Investigations/Procedures_for_Requests_to_Exclude_Particular_Products_from_the_September_2018_Action.pdf.

[25]  n3.

[26 ]  Procedures to Consider Requests for Exclusion of Particular Products From the Additional Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 Fed. Reg. 47,236 (Sep. 18, 2018),  https://ustr.gov/sites/default/files/enforcement/301Investigations/2018-20246.pdf.

[27]  n2.

[28]  Procedures to Consider Requests for Exclusion of Particular Products From the Determination of Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 Fed Reg. 32,181 (Jul. 11, 2018),  https://ustr.gov/sites/default/files/enforcement/301Investigations/FRN%20exclusion%20process.pdf.

[29]   E.g.  Office of the U.S. Trade Representative,  FAQ's for Product Exclusion Process on Additional $200 Billion Trade Actionhttps://ustr.gov/sites/default/files/enforcement/301Investigations/%24200_Billion_Trade_Action_Exclusion_Process_FAQs.pdf.

[30]  n29.

[31]  The Made in China 2025 Initiative “is the latest in a series of ambitious state-led programs introduced by the Chinese government that seek to modernize the Chinese economy, boost productivity, and make innovation a driver of economic growth.” Critics of the initiative “contend that the plan represents a state-directed industrial policy intended to reduce not only China's dependence on foreign technology but to help Chinese firms become dominant global players in numerous advanced industries.” Congressional Research Service,  The Made in China 2025 Initiative: Economic Implications for the United States  (Apr. 12, 2019),  https://fas.org/sgp/crs/row/IF10964.pdf.

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About the Author

Robert W. Snyder

​Mr. Snyder has a broad legal background encompassing over 40 years of experience in private practice, advising and litigating international business and trade issues in an ever-expanding global economy. Mr. Snyder also possesses a unique background in civil and criminal litigation matters, befor...

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