301 Modifications

On August 20, 2019, the United States Trade Representative (USTR) published a Modification of Section 301 Action in 84 FR 43304 introducing another imposition of additional tariffs on products of China with an annual trade value of approximately $300 billion which is referred to as Tranche 4.  The tariff subheadings subject to additional duties under Tranche 4 are separated into two lists with different effective dates – Annex A contains the formal Harmonized Tariff Schedule of the United States (HTSUS) language for list 1 and Annex B contains an informal description of the products in list 1.  Annex C contains the formal HTSUS language for list 2 and Annex D contains an informal description of the products in list 2.

 

On August 30, 2019, in accordance with the specific direction of the President, the USTR published their determination to modify the action being taken in the Section 301 investigation by increasing the rate of additional duty from 10 to 15 percent for the

products of China covered by the $300 billion tariff action (Tranche 4).  See 84 FR 45821.

List 1 will be in  effect on September 1, 2019 with additional duty of 15 percent
List 2 will be in effect on December 15, 2019 with additional duty of 15 percent

 

GUIDANCE:

Products Covered by Tranche 4, Annex A (Described in Annex B) – additional duty of 15 percent ad valorem is effective September 1, 2019

 

The additional import duties for Chinese goods covered by Annex A, published in the August 20, 2019 list of products subject to the Section 301 action, and are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on September 1, 2019.  Any article classified in a subheading covered by Annex A that is a product of China is subject to a 15% ad valorem duty rate, in addition to the general (Column 1) rate of duty for that particular subheading.  Therefore, in addition to regular chapter reporting requirements, report the following HTS number and duty rate.

 

HTS                                                       Duty Rate

9903.88.15                                         15 percent

 

Products Covered by Tranche 4, Annex C (Described in Annex D) –additional duty of 15 percent ad valorem is effective December 15, 2019

 

The additional import duties for Chinese goods covered by Annex C, published in the August 20, 2019 list of products subject to the Section 301 action, are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on December 15, 2019.  Any article classified in a subheading covered by Annex C that is a product of China is subject to a 15% ad valorem duty rate, in addition to the general (Column 1) rate of duty for that particular subheading.  Therefore, in addition to regular chapter reporting requirements, report the following HTS number and duty rate.

HTS                                                     Duty Rate

9903.88.16                                         15 percent

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