USTR Announces Changes to EU Section 301 Tariffs Related to the Large Aircraft Dispute

19Feb

USTR Announces Changes to EU Section 301 Tariffs Related to the Large Aircraft Dispute

Dear Valued Customer,

U.S. Trade Representative issued a news release on Feb 14 regarding the Large Civil Aircraft dispute, which also has a link to the pre-published (draft) Federal Register Notice.

The following is a summary of the U.S. Trade Representative’s notice:

Large Aircraft from the EU – 15% Effective March 18, 2020
- USTR has increased the tariffs to 15% (from 10%) under subheading 9903.89.05 on aircraft from the EU effective March 18 (See Annex 1, subparagraph C of the FR Notice).
- The EU countries affected for tariffs on Large Aircraft are France, Germany, Spain and UK
- Large Aircraft are classifiable under 8802.40.00** (See Annex II, Section 2, Part 1).
Other Select Commodities from the EU – 25% Effective March 5, 2020
- Changes were made to the original proposed list of EU products that will be subject to an additional 25% tariff
  - The new subheading 9903.89.52 for 25% is effective March 5 (See Annex 1, subparagraphs A and B of the FR Notice).
  - Prune juice has been removed from the list.
  - Butcher’s knives from England and Germany have been added to the list.
  - The rest of the list remains unchanged.
- The complete listing of countries, commodities and tariff numbers are listed in Annex II, Section 2, Parts 2 through 16 of the FR Notice.
  - EU countries affected by this list depend upon which “Part” (parts 2 – 16) of Section 2 the applicable tariff number falls under.
  - Each “Part” listing (parts 2 – 16) of tariff numbers have a list of countries assigned to them.
  - The complete list of affected countries are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, or the United Kingdom. As mentioned above, not all countries are subject to each Part listing of tariff numbers.
- Essentially, the 25% additional tariff will apply based on a “tariff number” plus “country of origin” combination.
- If your firm imports commodities listed in Annex II, Section 2, Parts 2 through 16, you may wish to import and clear the goods through Customs prior to the effective date of March 5, 2020 and make use of the “Estimated Entry Date” and submit an “Elected Entry Date” request letter via DIS to secure the lower rate. Any goods that are imported or entered on/after March 5 will be subject to the additional 25% tariff.

Thank you for your attention and cooperation. If you have any questions, please contact your nearest JJB representative.

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