ITC Releases Revision 7 to Tariff Schedule, Implementing Section 301 Tariffs, AGOA Benefits for Eswatini

The International Trade Commission recently posted Revision 7 to the 2018 Harmonized Tariff Schedule. Coming just days after the ITC’s mid-year HTS update, the new edition adds provisions implementing a 25% Section 301 tariff on $34 billion in imports from China that took effect July 6. It also reflects the restoration of African Growth and Opportunity Act benefits for Eswatini, and the country’s renaming from Swaziland.

Effective July 6, new subheading 9903.88.01 is added for goods of China subject to the additional 25% tariff under Section 301. The new subheading covers “articles the product of China, as enumerated in U.S. note 20 to this subchapter.” The column 1 general rate of duty is “The duty provided in the applicable subheading plus 25%.”

U.S. Note 20 to Chapter 99 details classification in the new subheading. Paragraph (b) of the new note is a list of the subheadings subject to the new tariffs, nearly all of which are found in Chapters 84-90 (with exceptions found in Chapters 28 and 40). Paragraph (a) of U.S. Note 20 details application of the new tariffs as follows:

“For the purposes of heading 9903.88.01, products of China, as provided for in this note, shall be subject to an additional 25 percent ad valorem rate of duty. The products of China that are subject to an additional 25 percent ad valorem rate of duty under heading 9903.88.01 are products of China that are classified in the subheadings enumerated in U.S. note 20(b) to subchapter III. All products of China that are classified in the subheadings enumerated in U.S. note 20(b) to subchapter III are subject to the additional 25 percent ad valorem rate of duty imposed by heading 9903.88.01.

“Notwithstanding U.S. note 1 to this subchapter, all products of China that are subject to the additional 25 percent ad valorem rate of duty imposed by heading 9903.88.01 shall also be subject to the general rates of duty imposed on products of China classified in the subheadings enumerated in U.S. note 20(b) to subchapter III.

“Products of China that are classified in the subheadings enumerated in U.S. note 20(b) to subchapter III and that are eligible for special tariff treatment under general note 3(c)(i) to the HTSUS shall be subject to the additional 25 percent ad valorem rate of duty imposed by heading 9903.88.01.

“The rates of duty imposed by heading 9903.88.01 shall not apply to products for which entry is properly claimed under a heading or subheading in chapter 98.

“Products of China that are provided for in heading 9903.88.01 and classified in one of the subheadings enumerated in U.S. note 20(b) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees, exactions and charges that apply to such products, as well as to the additional 25 percent ad valorem rate of duty imposed by heading 9903.88.01.”

The changes implementing Eswatini’s name change and re-addition to AGOA take effect July 3. References in General Notes 4(a) and 16(a), as well as in Chapter 98 AGOA provisions, are amended to refer to “Eswatini” instead of “Swaziland” or “Kingdom of Swaziland.” USTR announced the name change and restoration of AGOA benefits in the July 3 Federal Register (see 1807020026).