Starting Nov. 15 you’ll have your chance to give feedback on the effectiveness of the Section 301 tariffs on Chinese imports that were introduced by the U.S. government in 2017.
The Section 301 tariffs were introduced after the Office of the United States Trade Representative (USTR) concluded that the amount of Chinese goods being imported into the U.S. was too high compared to the amount of American goods being exported to China. The U.S. government attempted to reconcile that trade deficit by introducing tariffs as high as 25% on certain materials and products imported from China. (Read more here.)
The USTR is now reviewing the action and wants to hear from importers and others on:
- how effective the tariffs were in achieving the objectives of the investigation
- other actions that could be taken
- the effects of such actions on the U.S. economy, including U.S. small businesses and consumers
- the effects of such actions on the U.S. supply chain – in particular, the goals of U.S. critical supply chains outlined in Executive Order 14017 and in subsequent reports and findings
- the effects of such actions on domestic manufacturing, U.S. technology, and U.S. workers in terms of employment and wages
- whether the actions have resulted in higher additional duties on inputs used for additional manufacturing in the United States than the additional duties on particular downstream product(s) or finished good(s) incorporating those inputs.
You can read the USTR’s full notice here.
If you would like to submit your comments, you can do so through the online portal. The portal will open for submissions on Nov. 15, 2022, and will close on Jan. 17, 2023 at 11:59 p.m. EST.
If you’re an importer who is affected by the 301 tariffs you could be eligible for a refund. Learn more.
To stay informed on import and shipping challenges and other important updates, stay connected with a customs broker.
U.S. Customs and Border Protection will provide duty-free treatment to importers of infant formula base powder until Dec. 31, 2022.
The temporary lifting of infant formula base powder duty fees is in response to the Bulk Infant Formula to Retail Shelves Act which was passed on Oct. 10, 2022 to address unprecedented infant formula shortages in the U.S.
CBP states that duty-free treatment will only be provided to importers of base powder to be manufactured into infant formula authorized to be marketed in the United States or subject to an enforcement discretion letter from the Food and Drug Administration (FDA).
Importers are instructed to use entry type code 02, 06, 07, 32, or 38, and to report in kilograms (kg). There is a restraint level in place of 2,600,000 kg aggregate.
Qualifying shipments will be classifiable under HTS subheading 1901.90.62 and must be exported to the United States on or before November 14, 2022. Importers will make a quota type entry using subheading 9903.19.23. If the import quota threshold is met before Dec. 31, 2022, duty-free treatment will no longer be granted.
Imports that do not qualify for the duty-free treatment (including imports made after Dec. 31, 2022) will be classified using subheading 1901.90.62, which has a duty rate of $1.035/kg +13.6%.
For more information, you can view the original bulletin here, or visit the FDA’s Enforcement Discretion to Manufacturers to Increase Infant Formula Supplies webpage.
To stay informed on import news important updates, stay connected with a customs broker.
Relief could soon be coming from the Section 301 tariffs thanks to the forward progress of a case filed with the Court of International Trade in 2020. The tariffs are affecting hundreds of billions of dollars worth of certain US products imported from China.
If the case is successful, importers could receive refunds on all Section 301 tariffs paid on List 3 and List 4A goods.
Background – What are the Section 301 tariffs?
The Section 301 tariffs were introduced by the US government in 2017 in response to China’s trade policies, and the belief that the number of Chinese goods being imported into the US was too high compared to the number of American goods being exported to China.
As a result, corporations and manufacturers have faced tariffs of up to 25% on many of the goods they import from China. This has forced importers to decide whether to eat the cost, find new supply chains, or pass the cost on to customers.
Get more information about the Chinese import tariffs here.
Details of the case
According to an update from the international trade law firm Sandler, Travis & Rosenberg (ST&R), in 2020 a case was filed with the CIT arguing that, “the tariffs on List and List 4A goods were imposed (1) in violation of the authority provided under the Trade Act of 1974 because there was no specific finding from the Office of the US Trade Representative on the impact of China’s actions on US trade, and (2) in violation of the Administrative Procedures Act because USTR failed to allow sufficient time and process for notice and comment and failed to adequately respond to the thousands of comments received.”
In April of this year, the CIT request an explanation from the US Trade Representative (USTR) of why it imposed the List 3 and 4A tariffs and how it addressed the comments. The USTR filed its 90-page response on Aug. 1. The CIT is expected to conclude its review and issue a decision sometime in fall, 2022.
Are you affected by the Section 301 tariffs? Here’s how to file a claim to receive your potential refund
If you’re an importer affected by Section 301 tariffs, there is still time to join the case and file your claim to receive the possible refunds. For more information or for assistance filing your claim, you can contact ST&R attorneys Larry Ordet, Lenny Feldman, Rob DeCamp, or David Cohen at [email protected].
In the meantime, you can also read our article with tips on how to manage the impact of the tariffs on your bottom line.
No announcement on when the Section 301 tariffs will be sunset
ST&R also provided an update on the USTR’s sunset review of the Section 301 tariffs. Although an announcement on whether Section 301 tariffs would be continued or lifted was expected around July 5, there has still not been any formal announcement from the USTR.
To stay informed on news relating to tariffs, importing, and other important updates, stay connected with a customs broker.
The Importer Security Filing (ISF filing) applies to all incoming cargo to the United States by Ocean Vessel. ISF filing was first introduced in 2009 and officially went into effect late in 2010. ISF was put in place for targeting and security purposes only and does not necessarily effect trade enforcement or admissibility of your cargo however US. Customs and Border Protection (CBP) will compare data filed with your customs entry to assess risk.
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