Customs Brokerage News

The U.S. Trade Representative (USTR) has created new opportunities for China Section 301 additional duty exclusion extensions for List 1 and exclusion requests for List 4A.

List 1, Round 1 Exclusions Set to Expire 12/28/19

List 1 of the China Section 301 additional duties was effective on July 6, 2018, after which the USTR created the opportunity to apply for exclusions from the assessment of the additional duties. There have been eight rounds of exclusions granted for List 1 products. The first round of exclusions was effective on December 28, 2018 and is scheduled to expire on December 28, 2019.

On October 31, 2019 the USTR published in the Federal Register a notice of its decision to open this round of exclusions for comment and will decide if any exclusions will be extended. The comments may be made online at regulations.gov for docket number USTR-2019-0019. The comment period started November 1, 2019 with a deadline of November 30, 2019.

List 4A Exclusion Request Deadline is 1/30/20

List 4 was effective on September 1, 2019. On October 24, 2019 the USTR published in the Federal Register a notice of its decision to open this list for interested parties to apply for exclusions. The exclusions may be made online via the exclusions portal. The application period started October 31, 2019 with a deadline of January 31, 2020.

We appreciate your continued support as a valued customer and should you require further information or clarification, please contact your Schenker brokerage office.

UPDATE:  11262019

The United States Trade Representative published four additional sets of exclusions to the Section 301 List 3 imports from China.  The product exclusions apply retroactively from September 24, 2018.  Details on the exclusions are available below.

Link to October 2 Federal Register notice for List 1 – 8th round, HTS 9903.88.19, valid from July 6, 2018 until October 2, 2020

Link to October 2 Federal Register notice for List 2 – 3rd round, HTS 9903.88.20, valid from August 23, 2018 until October 2, 2020

Link to October 28 Federal Register notice for List 3 – 3rd round, HTS 9903.88.33, valid from September 24, 2018 until August 7, 2020

Link to November 13 Federal Register notice for List 3 – 4th round, HTS 9903.88.34, valid from September 24, 2018 until August 7, 2020

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China Section 301 List 1 and List 4A Exclusions

On October 2, 2019 the World Trade Organization (WTO) arbitrator ruled the U.S. may impose retaliatory tariffs on $7.5bn of goods it imports from the European Union (EU). 

The U.S. plans to impose tariffs on European Union goods including aircraft and agricultural products in alignment with the World Trade Organization (WTO) ruling.  The USTR released a list Wednesday of products it plans to target.  The duties would take effect Oct. 18. The duties include:

• 10% tariffs on aircraft from France, Germany, Spain or the United Kingdom
• 25% duties on single-malt Irish and Scotch whiskies, various garments and blankets from the U.K.
• 25% tariffs on coffee and certain tools and machinery from Germany
• 25% duties on various cheeses, olive oil and frozen meat from Germany, Spain and the U.K.
• 25% tariffs on certain pork products, butter and yogurt from multiple countries

The U.S. Trade Representative published on its website a final list of products on which additional duties will be assessed after official legal notice in the Federal Register.

There are 15 lists of HTS numbers affected, with each list assigned to certain countries. Also impacted are certain apparel, blankets, and bed linens from the UK; and tools, books, pictures, and self-propelled machinery from the U.K. and Germany.

Please be sure to contact your Schenker brokerage office as soon as possible if you believe your products are impacted by these additional tariffs.

Effective October 1, 2019

U.S. Customs & Border Protection announced a 2.174 percent increase of the merchandise processing fee (MPF) effective October 1, 2019 for fiscal year 2020. While the assessed rate of .3464 percent of the entered value of merchandise does not change, the minimum and maximum limitations for the MPF are adjusted. The fee is now reviewed annually and may be adjusted to account for inflation as authorized under the 2015 Fixing America’s Surface Transportation Act (FAST Act). The rate of increase is calculated from the base year of 2014, so the published rate increase of 7.167 percent is based on fee amounts in that year ($25 formal min, $485 formal max), rather than from current rates.

• Formal entry minimum increases from $26.22 to $26.79
• Formal entry maximum increases from $508.70 to $519.76
• Informal entry electronically transmitted to CBP increases from $2.10 to $2.14
• Informal entry manually submitted to CBP increases from $6.29 to $6.43

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CBP Increases MPF

On August 1st President Trump announced his intention to assess 10 percent additional duty starting September1, 2019 on remaining imports from China.  The Section 301 additional duties will be imposed on products that are on “List 4”, with an annual trade value of approximately $300 billion. The USTR published the preliminary List 4 in the May 17, 2019 Federal Register, and public hearings were held in June.  The Office of the U.S. Trade Representative said,  "this list covers essentially all remaining imports from China. The proposed product list excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals."  At this point we must wait until the U.S. Trade Representative (USTR) publishes the final list and posts the legal notice in the Federal Register in order for the tariff to take effect.

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Section 301 List 4 Duties Announced

On Sunday, February 24th President Trump announced that he is postponing the rate increase for the List 3 Section 301 trade remedy duties that was scheduled for implementation on March 2nd. A new deadline was not provided.

On December 1, 2018 President Trump advised the additional duty rate for articles on List 3 would not increase from 10 to 25 percent as scheduled on January 1, 2019.

The Bioterrorism Act and Food Safety Modernization Act requires all domestic and foreign facilities that manufacture, process, pack, or hold food for human or animal consumption in the U.S. to register with the U.S. Food and Drug Administration (FDA). 

The U.S. Trade Representative (USTR) issued its final “List 2” for products of Chinese origin for which the additional 25 percent duty will be effective on August 23, 2018.  

Effective October 1, 2018 for fiscal year 2019, U.S. Customs & Border Protection announced a 2.151 percent increase of the merchandise processing fee (MPF).

Effective July 6, 2018, an additional 25 percent rate of duty is assessed upon importation of certain products of Chinese origin, implemented under provisions of Section 301(b) of the Trade Act of 1974.