August 7, 2018

Dear Valued Customer:

USTR Posts Second List of Section 301 Tariffs of 25% on Chinese Imports Effective August 23

The Office of the United States Trade Representative (USTR) today released a list of approximately $16 billion worth of imports from China that will be subject to a 25 percent additional tariff as part of the U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property.  This second tranche of additional tariffs under Section 301 follows the first tranche of tariffs on approximately $34 billion of imports from China, which went into effect on July 6.

The list contains 279 of the original 284 tariff lines that were on a proposed list announced on June 15.  Changes to the proposed list were made after USTR and the interagency Section 301 Committee sought and received written comments and testimony during a two-day public hearing last month. Customs and Border Protection will begin to collect the additional duties on the Chinese imports on August 23.

In March 2018, USTR released the findings of its exhaustive Section 301 investigation that found China’s acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden U.S. commerce.

Specifically, the Section 301 investigation revealed:

  • China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from U.S. companies.
  • China deprives U.S. companies of the ability to set market-based terms in licensing and other technology-related negotiations.
  • China directs and unfairly facilitates the systematic investment in, and acquisition of, U.S. companies and assets to generate large-scale technology transfer.
  • China conducts and supports cyber intrusions into U.S. commercial computer networks to gain unauthorized access to commercially valuable business information.

A formal notice of the $16 billion tariff action will be published shortly in the Federal Register.  As in the case of the first tranche of additional tariffs, the notice will announce a process by which interested persons may request the exclusion of particular products covered by a tariff line subject to the additional duties.

Background:  The USTR had previously listed two separate sets of Section 301 tariffs. The first set contained 818 lines covering approximately $34 billion worth of imports from China subject to an additional duty of 25 percent effective July 6, 2018. Today’s announcement covers the second set of Section 301 tariffs on an additional $16 billion worth of Chinese imports beginning August 23, for a combined total of about $50 billion worth of Chinese imports. In addition to these two sets, on July 10, the USTR released a third set of a proposed list of 6,031 tariff lines subject to an additional 10% tariff against about $200 billion worth of Chinese goods. Trump was reported as directing the USTR to consider an increase from 10% to 25% in additional duties for the third set. A decision on the third set of tariffs is expected to be made sometime after August 30. For more detailed information, please see our previous newsletter dated July 10.

If your firm imports any products classifiable under the second list subject to 25% Section 301 duties, we recommend that for any shipments arriving into the first U.S. port of unlading on or before August 22, Customs entries should be pre-filed if possible with a request for an Elected Entry Date of the actual date of arrival of the vessel in order to secure the current lower tariff rate.

For shipments arriving on or after August 23, your options may include (a) payment of the 25% additional duties, (b) immediate re-exportation under bond or transfer the merchandise in-bond to Canada or Mexico instead of filing a consumption entry in the USA, or (c) place the merchandise in a bonded warehouse or Foreign Trade Zone in privileged foreign status. Unlike Section 232 duties against steel and aluminum, U.S. Customs and Border Protection has confirmed that duty drawback will be allowed for eligible Section 301 duties.

 

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

 

Keep yourself updated with the latest industry happenings, subscribe to JJB’s Newsletters!

The information accompanying this newsletter contains confidential information belonging to the sender which is legally privileged. The information is intended only for the use of customers of James J. Boyle & Co. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in reliance on the content of this information is strictly prohibited. James J. Boyle & Co. will also not be held accountable for any discrepant information. The service we provide is based on our "Terms and Conditions of Service", which is available upon request.

You are provided this copy subject to the terms and conditions of our services.  All rights reserved.
CONTACT US
SUBSCRIBE TO OUR ENEWS

    Please prove you are human by selecting the House.

    JJB Trak
    CONTACT US
    JJB Trak
    SUBSCRIBE TO OUR ENEWS

      Please prove you are human by selecting the Truck.

      CONTACT US
      SUBSCRIBE TO OUR ENEWS

        Please prove you are human by selecting the Flag.

        JJB Trak

        SPECIAL PROJECTS

        SPECIAL PROJECTS

        SPECIAL PROJECTS

        Have a special shipment? We use the latest technology to research and create the best custom packages to get the project done.

        We are at our best when confronted with a logistical challenge, one-time project or other special need. With more than 50 years’ experience, access to the latest technology and world-class Customs Brokerage and freight forwarding expertise, we can help design customized solutions that meet your needs.

        For more information about how we can help you, please contact us at our office location most convenient to you.

        CUSTOMS BROKERAGE

        CUSTOMS BROKERAGE

        CUSTOMS BROKERAGE

        You have someone on your side that understands the rules and regulations that your cargo will need to meet in order to ensure a streamlined shipping process and expedited Customs clearance.

        Our relationships with government agencies and gatekeepers helps to minimize delays that might be brought on by new legislation, updated requirements, or any other potential road blocks. We continuously stay up to date on industry news and trends. Our goal is to cover every logistical base making it possible for full Customs release prior to cargo arrival into port.

        From raw materials to processed goods, we ensure that your cargo reaches its destination in the most cost-efficient manner.

        We can assist you by pre-clearing your cargo, providing last-mile final delivery services to the ultimate U.S. destination, or warehousing services as your needs dictate.

        INTERNATIONAL LOGISTICS

        INTERNATIONAL LOGISTICS

        INTERNATIONAL LOGISTICS

        We will handle all of the planning and booking of your inbound and outbound cargo while giving you real-time status updates in the most efficient and transparent way possible.

        Our team provides the latest freight rates, whether ocean or air, to ensure the most competitive bids are secured for you. We will also manage the documentation making it a smooth process from port to port. We can provide a full range of booking services, freight cost analysis, and coordination of your jobs requiring multi-modal transportation when you choose us for your logistics needs.

        EXPORT

        EXPORT

        EXPORT

        With ever growing export regulations and special rules or sanctions on specific countries, you need an expert that can properly screen cargo to ensure it meets TSA standards and file the necessary data via AES (Automated Export System).

        Our expert staff will export your cargo via ocean or air expeditiously and with great care.

        CONSULTING

        CONSULTING

        CONSULTING

        Decades of experience as a successful freight forwarder and U.S. Customs broker puts us in the unique position to advise and consult with you as you seek to enter or expand your presence in global trade.

        Your regulatory and logistical needs are as unique as your business! Whether you need tariff classification advice, a binding ruling, drawback services, or assistance with an internal audit, we take pride in delivering the kind of custom-tailored services that are difficult to find in larger companies. Take the first step towards success in the world of international freight forwarding and Customs brokerage by contacting our consulting division today.

        © 2022 JAMES J. BOYLE & CO. ALL RIGHTS RESERVED. - WEBSITE DESIGN BY ELEMENT212. - VIEW OUR PRIVACY POLICY - VIEW OUR TERMS & CONDITIONS.