Tariff Changes Over Past Six Months Implement Sections 301 and 232 Tariff, Other Changes

2020 outpaced even the active 2019 in terms of the frequency of Harmonized Tariff Schedule updates. Most of the updates implemented new Section 301 exclusions and changes and extensions for existing ones. Other major changes included new Section 232 tariffs on steel and aluminum "derivatives" and the withdrawal of Generalized System of Preferences benefits for many goods from Thailand In all, 13 revisions were issued prior to the mid-year Revision 14, as follows:

Revision 1 (01/21/20). Revision 1 included updates needed to implement the latest set of exclusions from list 3 of Section 301 tariffs on products from China (see 2001020035). The new exclusions were listed in new U.S. Note 20(pp) to subchapter III of chapter 99. New subheading 9903.88.37 was created for products entering under the exclusions, and conforming changes were made to other provisions throughout subchapter III. The exclusions took retroactive effect as of Sept. 24, 2018, the date that the list 3 tariffs took effect.

Revision 2 (02/06/20).Revision 2 to the 2019 HTS implemented new Section 232 tariffs on certain finished products of iron and steel products and aluminum (see 2001280066), as well as the switch of Section 201 safeguards on large residential washers from an annual to a quarterly tariff-rate quota (see 2001270042).

New subheadings 9903.80.03 and 9903.85.03 were added for goods subject to the new section 232 tariffs on iron and steel “derivatives” that took effect Feb. 8. As with Section 232 tariffs on aluminum and iron and steel in primary forms, the new tariffs on “derivatives” -- which include iron and steel nails and tacks, aluminum wire and cable, and bumper and tractor body stampings of both aluminum and iron and steel — do not apply to “products of Australia, of Argentina, of Brazil, of Canada, of Mexico, of South Korea.”

Note U.S. Notes 16(a)(ii) and 19(a)(iii) were added to subchapter III of chapter 99 for the new tariffs on iron and steel products and aluminum products, respectively. Conforming changes were made for several existing paragraphs on U.S. Notes 16 and 19.

Subheading 8708.10.3010 for automotive bumper stampings was broken out into new subheadings 8708.10.3020 for steel bumper stampings, 8708.10.3030 for aluminum bumper stampings, and 8708.10.3040 for “other” bumper stampings. Likewise, subheading 8708.29.21 for “body stampings for tractors suitable for agricultural use” was subdivided into new subheadings 8708.29.2120 for steel body stampings, 8708.29.2130 for aluminum body stampings, and 8708.29.2140 for “other” body stampings.

U.S. Note 17(i) was added to Subchapter III of Chapter 99 to set the quarterly washer quota. Subheading 9903.45.01 for in-quota large residential washers was modified to reflect the quarterly TRQ, as is U.S. Note 17(d) on tariff rates applicable to in-quota large residential washers. Provisions for quotas on parts of large residential washers were unchanged.

Finally, technical corrections were made to subheadings 8413.91.9065 for parts of pump sucker rods, 8503.00.9046 for parts for AC generators, and 8503.00.9070 for parts of wind-powered generating sets.

Revision 3 (02/13/20). Revision 3 to the 2019 HTS implemented the decrease in Section 301 tariffs on List 4A goods from 15% to 7.5%, per the Phase I deal between the U.S. and China (see 2001160019). It also added exclusions from Section 301 tariffs, and amended some existing ones, per two notices from the Office of the U.S. Trade Representative.

New U.S. Note 20(qq) was added to subchapter III of chapter 99 to list goods newly excluded from the third list of Section 301 tariffs on goods from China (see 2002040040). Entries covered by the exclusions are filed under new HTS subheading 9903.88.38. Conforming changes were made to other provisions of subchapter III on Section 301 tariffs.

New paragraphs 94-97 were added to U.S. Note 20(x) for goods newly excluded from the first list of Section 301 tariffs, as announced in a USTR notice published Feb. 11 (see 2002100014). Technical changes were also made to existing exclusions at U.S. notes 20(i)(6–7), 20(m)(16–18), 20(m)(27), 20(n)(13–27), 20(n)(30), 20(q)(19–21), and 20(x)(20).

Revision 4 (02/21/20). Revision 4 added new exclusions from Section 301 tariffs and amended units of quantity for a pair of subheadings for U.S. goods returned under Chapter 98. New U.S. Note 20(ss) was added for the new exclusions, as announced by the Office of the U.S. Trade Representative on Feb. 19 (see 2002190015). New subheading 9903.88.40 was created for goods entered under the new exclusions, and conforming changes are made elsewhere to Chapter 99 provisions on Section 301 tariffs. For U.S. goods returned, units of quantity for subheadings 9801.00.1030 and 9801.00.1031 (which cover goods of chapters 71 and 82, respectively) were changed to a footnote that says quantities should be reported in the units provided in chapters 1-97. Previously the units were “No. and g” and “No. and kg,” respectively.

Revision 5 (03/04/20). Revision 5 implemented changes to Section 301 tariffs on the European Union related to the Boeing-Airbus dispute at the World Trade Organization (see 2002180040). New subheading 9903.89.52 was added for newly tariffed knives from the United Kingdom and Germany. Subheading 9903.89.05 was amended to increase the tariff on new airplanes from France, Germany, Spain and the U.K. from 10% to 15%. Notes 21(a), (g) and (q) were amended to reflect the changes, including the removal of a classification for blended Scotch and Irish whiskies that carried no additional duty. These changes took effect March 5.

In Revision 5, the ITC also implemented a round of exclusions from Section 301 tariffs on products from China (see 2002200063). A new paragraph is added to chapter 99, subchapter III at U.S. Note 20(y)(112) for electric skateboards now excluded from the second list of tariffs. A technical correction was made to the existing exclusion for silicon at U.S. Note 20(y)(2).

Revision 6 (03/17/20). In Revision 6, the ITC amended U.S. Note 21 and its associated Chapter 99 tariff provisions to implement minor changes to tariffs on the EU announced in February (see 2002180040). Changes, effective March 5, included removal of tariffs on prune juice and the addition of tariffs on butcher’s knives from France and Germany. Other changes implemented in Revision 5 were new exclusions from Section 301 tariffs on products from China for medical products under U.S. Note 20(rr) and HTS subheading 9903.88.39 (see 2003060042), as well as additional medical product exclusions announced the following week under U.S. Note 20 (tt) and HTS subheading 9903.88.41 and more exclusions not involving medical products under U.S. Note 20(uu) and subheading 9903.88.42 (see 2003130010).

The ITC also amended Statistical Annex C to add port code 2401 for Ysleta, Texas. CBP had announced the change as part of a reorganization of El Paso port codes in February (see 2002260018).

Revision 7 (03/31/20). In Revision 7, the ITC implemented three more rounds of product exclusions from Section 301 tariffs on products from China. One round was an extension to some exclusions under U.S. Note 20(i) (see 2003160018), while the other two sets were entirely new exclusions under U.S. Notes (ww) and (vv), and subheadings 9903.88.43 and 9903.88.44, respectively (see 2003230043 and 2003260030).

Revision 8 (04/24/20). Revision 8 to the HTS implemented the suspension of Generalized System of Preferences treatment for many products from Thailand in response to labor rights violations (see 1910280044), effective April 25. Also on that update, the ITC implemented extensions to list 1 Section 301 tariff exclusions under U.S. Note 20(j), as announced in an April 10 notice from the Office of the U.S. Trade Representative (see 2004080011).

Revision 9 (04/29/20). In Revision 9, issued April 29, the ITC implemented a new set of Section 301 exclusions for products on list 3, as announced in a USTR notice issued April 24 (see 2004230010). The exclusions are found under U.S. Note 20(xx), and filed under 9903.88.45.

Revision 10 (05/13/20). In Revision 10, the ITC added new exclusions from list 3 and list 4 Section 301 tariffs under U.S. Notes 20(yy) and 20(zz), as well as subheadings 9903.88.46 and 9903.88.47, respectively (see 2005050037 and 2005110027). The ITC also made technical corrections to exclusions from the first group of Section 301 tariffs found in U.S. Note 20(q) to subchapter III of Chapter 99 of the tariff schedule, as well as to exclusions from the second group of tariffs found in U.S. Notes 20(v) and 20(y).

Revision 11 (05/29/20). In Revision 11, issued May 29, the ITC implemented new exclusions from List 3 tariffs under U.S. Note 20(aaa) and subheading 9903.88.48 (see 2005220020). The agency also removed two list 4 exclusions (see 2005270022), and extended some exclusions from the first list of Section 301 tariffs that had been set to expire May 14 (see 2005130003).

Revision 12 (06/04/20). Revision 12 implemented a June 2 notice from the Office of the U.S. Trade Representative that extended some exclusions from list 1 Section 301 tariffs on products from China (see 2005290020). The extended exclusions were listed in new U.S. Note 20(ccc) to Chapter 99 in the tariff schedule, and goods entered under these exclusions are classifiable under new subheading 9903.88.0050.

Revision 13 (06/12/20). Revision 13 to the 2020 Harmonized Tariff Schedule implemented a round of exclusions from the fourth tranche of Section 301 tariffs on products from China, under subheading 9903.88.49 and U.S. note 20(bbb) to subchapter III of chapter 99 (see 2006090018). The ITC also amended an existing exclusion from the tariffs for certain pill crushing and grinding machines of subheading 8479.82.0080, per a USTR notice issued June 8.