‘Procedural Burden’ Looms As 2 Tariff Lists Expire 7 Weeks Apart: Lawyer

The Office of the U.S. Trade Representative is wading into “unchartered waters” if it tries extending the Lists 1 and 2 Section 301 tariffs on China past their four-year expiration deadlines under the 1974 Trade Act (see 2203120001), emailed David Olave, a Sandler Travis associate and trade policy adviser. List 1 is due to expire July 6, List 2 on Aug. 23. The Trade Act binds USTR to hold a notice-and-comment review period in the last 60 days before each tranche expires if the agency gets written requests from “domestic beneficiaries” to extend the tariffs, said Olave Monday: “We know what the statute says, but we do not have regulations or precedent to rely upon on how to read the statute.” It’s possible USTR “could consider the 301 Actions for Lists 1 and 2 as part of the same investigation,” he said. “The original move by USTR approved tariffs for up to $50 billion, so the two lists are in fact linked to that first scope of action. Therefore, USTR could consider tackling both lists at the same time with regards to comments.” USTR alternatively could try splitting the lists into “two separate tranches and ask for comments on List 1 first and then List 2,” said Olave. “I do not see major legal reasons against doing that, only the overall procedural burden of dealing with two separate and similar issues almost parallel to one another,” he said. “We’ll see what USTR’s next step is soon.” USTR didn’t respond to questions Tuesday.