USTR Releases Notice on List 4 Section 301 Tariffs; Importers Should Check Notice, Not Earlier Lists, Lawyer Says

The Office of the U.S. Trade Representative posted to its website Aug. 14 its upcoming notice in the Federal Register detailing new Section 301 tariffs on a fourth list of $300 billion in Chinese imports (see 1908130033). According to the notice, beginning on Sept. 1, goods included in the first group of the list must be filed under subheading 9903.88.15. Then, effective Dec. 15, tariffs take effect on a second list of goods under subheading 9903.88.16.

According to customs lawyer Ted Murphy, importers should “check the annexes attached to this notice and not rely on the versions posted on the USTR website earlier this week (in particular, focus on Annex A and Annex C for the HTS classifications subject to the additional duty).” In an email sent, Aug. 13, Murphy noted that the Sept. 1 date “is the date of import (entered, or withdrawn from warehouse, for consumption),” and not the date of export from China.

Murphy points out that the notice says the distinction between goods subject to tariffs on Sept. 1 versus Dec. 15 has to do with how much the U.S. relies on imports from China under the particular subheading. Tariffs take effect Sept. 1 “where China’s share of U.S. imports from the world is less than 75 percent for each subheading.” They take effect Dec. 15 “where China’s share of U.S. imports from the world is 75 percent or greater for each subheading.”

“In short, the Administration is recognizing that it may take U.S. companies longer to shift sources of supply for products where China accounts for 75% or more of the total U.S. imports of that article,” Murphy said.