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Notice of Modification of Action from USTR Published Regarding Additional Tariffs on Chinese Imports — Orbitax Tax News & Alerts

A notice of modification of action from the Office of the United States Trade Representative (USTR) was published in the Federal Register on 20 August 2019 regarding the additional 10% tariffs that will be imposed on the import of specified Chinese products.

The notice provides that in accordance with the specific direction of the President, the U.S. Trade Representative has determined to modify the action being taken in this Section 301 investigation by imposing additional duties of 10% ad valorem on products of China classified in the tariff subheadings set out in the four Annexes to the notice:

  • Annex A contains the formal Harmonized Tariff Schedule of the United States (HTSUS) language for list 1, includes tariff subheadings where China's share of U.S. imports from the world is less than 75% for each subheading
  • Annex B contains an informal description of the products in list 1.
  • Annex C contains the formal HTSUS language for list 2, which includes products where China's share of U.S. imports from the world is 75% or greater for each subheading; and
  • Annex D contains an informal description of the products in list 2.

For list 1, the additional duty of 10% ad valorem is effective 1 September 2019. To provide a longer adjustment period for U.S. interested persons, the additional duty of 10% ad valorem for list 2 is delayed until 15 December 2019.

The notice also includes that the Trade Representative has decided that USTR will establish a process by which interested persons may request that particular products classified within an HTSUS subheading covered by Annex A and Annex C be excluded from the additional duties. USTR will publish a separate notice describing the product exclusion process, including the procedures for submitting exclusion requests, and an opportunity for interested persons to submit oppositions to a request.