Section 301 List 3 additional duties for Chinese origin product are increasing from 10% to 25% on Friday, May 10, 2019 at 12:01 am, according to the May 9, 2019 Federal Register Notice,
Goods that are both entered for consumption/or withdrawn from warehouse AND EXPORTED* after May 10, 2019, will be subject to the new rate.
Basing the duty rate on the export date is different than the enactment of prior trade remedy actions, including the initial Section 301 List 3. CBP guidance provides for a new Harmonized Tariff Schedule (HTS) of 9903.88.09, to be used for goods entered between May 10, 2019 and June 1, 2019, that are exported prior to May 10, 2019, allowing entry at the 10% additional duty rate.
*The date of exportation or time of exportation is the actual date the merchandise leaves the country of exportation for the United States
This impacts roughly $200 billion worth of Chinese origin imports.
Section 301 List 3 10% tariffs have been in effect since September 24, 2018, and originally were to increase on January 1, 2019, but the increase was delayed twice, as negotiations with China continued.
Potential List 4:
A 25% percent additional duty rate may be imposed shortly on the remaining Chinese origin products, in a potential List 4. This covers $325 billion of goods. This would begin by posting a Federal Register Notice (FRN) for List 4, which provides for a public comment period, hearing, and substantive and administrative reviews. If put into effect this would likely come into force in July 2019.
After returning from talks in China last week, USTR Lighthizer and Treasury Secretary Mnuchin met with the President this weekend.The President is concerned about the pace of the ongoing talks with China, as well as China seeking to renegotiate already agreed upon positions.
Chinese Vice Premier Liu He will be in Washington on May 9th and 10th, for meetings in the negotiation.
Section 301 Exclusions:
List 1: To date there are 3 tranches of approved exclusions.
Please see our previous Trade News article on Section 301 Exclusions at
Section 301 Exclusions for Chinese Origin Goods, 87 More Exclusions Granted for Section 301 List One Chinese Origin Goods, and 21 New Exclusions Granted for Chinese Origin Section 301 List One Products
List 2: Exclusion requests are being accepted, but none have been approved.
List 3: An exclusion process is in the works. Exclusions had not been allowed with the 10% duty rate.
Section 301 additional duties currently apply to certain product of Chinese origin due to China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation, which threaten the long-term competitiveness of the U.S.
Please see Customs and Border Protection’s (CBP’s) Section 301 HTSUS Reference Guide for a list of affected tariffs.
There are currently three lists of products subject to additional Section 301 duties, with a 4th list being considered, as noted above. List 1 and List 2 have a 25% additional duty rate.
If you have any questions regarding Section 301 on Chinese origin imports, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs group at firstname.lastname@example.org