Category Archives: Customs & Trade Updates

Generalized System of Preferences (GSP): Notice Regarding the 2019 GSP Annual Product Review (Docket No. USTR–2019–0001) – Public Comment Dates Announced

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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. USTR–2019–0001] Generalized System of Preferences (GSP): Notice Regarding the 2019 GSP Annual
Product Review

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of hearing and requests to testify and for public comments.

SUMMARY: The Office of the United States Trade Representative (USTR) has
accepted petitions submitted in connection with the 2019 GSP Annual Product Review
for further review. This notice includes the schedule for submission of public comments
and the date of a public hearing to review these petitions and products by the GSP
Subcommittee of the Trade Policy Staff Committee (TPSC).

DATES:
June 26, 2019 at midnight EDT: Deadline for submission of comments, pre-hearing
briefs, and requests to appear at the GSP Subcommittee Public Hearing on the 2019 GSP
Annual Product Review.

July 2, 2019 at 1:30 p.m. EDT: The GSP Subcommittee will convene a public hearing on
all petitioned product additions, product removals, and competitive needs limitation
(CNL) waiver petitions that it accepted for the 2019 GSP Annual Product Review. The
hearing will be in Rooms 1 and 2, 1724 F Street NW, Washington DC 20508, beginning
at 1:30 p.m.

August 15, 2019 at midnight EDT: Deadline for submission of post-hearing comments
or briefs in connection with the GSP Subcommittee Public Hearing.
This document is scheduled to be published in the
Federal Register on 06/14/2019 and available online at
https://federalregister.gov/d/2019-12589, and on govinfo.gov

September 7, 2019: USTR expects that the U.S. International Trade Commission
(USITC) will deliver a report to USTR providing advice on the probable economic
effects of adding products to GSP eligibility, removing products from GSP eligibility,
and granting CNL waiver petitions during the 2019 GSP Annual Product Review.
Interested parties can post comments on the USITC report on www.regulations.gov using
Docket Number USTR-2019-0001 (instructions for submissions are provided below).
Comments are due ten calendar days after the publication date of the USITC’s public
report.

November 1, 2019: Effective date for any modifications that the President proclaims to
the list of articles eligible for duty-free treatment under GSP resulting from the 2019 GSP
Annual Product Review and for determinations related to CNL waivers.

ADDRESSES: USTR strongly prefers electronic submissions made through the Federal
Rulemaking Portal: https://www.regulations.gov, using docket number USTR-2019-
0001. Follow the instructions for submitting comments in “Requirements for
Submissions” below. For alternatives to on-line submissions, please contact Yvonne
Jamison at (202) 395–3475.

FOR FURTHER INFORMATION CONTACT: Erland Herfindahl, Deputy Assistant
USTR for GSP, 1724 F Street NW, Washington DC 20508. The telephone number is
(202) 395-2974 and the e-mail address is gsp@ustr.eop.gov.

SUPPLEMENTARY INFORMATION:
A. Background

The GSP program provides for the duty-free importation of designated articles
when imported from designated beneficiary developing countries. The GSP program is
authorized by Title V of the Trade Act of 1974 (19 U.S.C. 2461-2467), as amended, and
is implemented in accordance with Executive Order 11888 of November 24, 1975, as
modified by subsequent Executive Orders and Presidential Proclamations.

B. Petitions Requesting Modifications of GSP Product Eligibility
In a notice published in the Federal Register on March 25, 2019 (84 FR 11150),
USTR announced the 2019 GSP Annual Product Review and indicated that the GSP
Subcommittee was prepared to receive petitions to modify the list of products that are
eligible for duty-free treatment under the GSP program and petitions to waive CNLs on
imports of certain products from specific beneficiary countries. The GSP Subcommittee
has reviewed the product and CNL waiver petitions submitted in response to these
announcements, and has decided to accept for review several petitions seeking to: remove
products from GSP eligibility for certain GSP beneficiary countries; waive certain CNLs;
and redesignate certain products to GSP eligibility for certain GSP beneficiary countries.
USTR posted a list of petitions and products accepted for review at
https://ustr.gov/issue-areas/preference-programs/generalized-system-preferencesgsp/
current-reviews/2019-annual under the title “Petitions Accepted in the 2019 GSP
Annual Product Review.” You also can find this list at www.regulations.gov in Docket
Number USTR-2019-0001. Acceptance indicates only that the TPSC found that the
subject petition warranted further consideration and that a review of the requested action
will take place.
The GSP Subcommittee invites public comments on any petition it has accepted for
the 2019 GSP Annual Product Review. Public comments are due on June 26, 2019, at
midnight EDT. The GSP Subcommittee also will convene a public hearing on these
products and petitions. See below for information on how to submit a request to testify at
this hearing.

C. Notice of Public Hearing for the GSP Product Review
The GSP Subcommittee will hold a hearing on July 2, 2019, beginning at 1:30
p.m., for products and petitions accepted for the 2019 GSP Annual Product Review. The
hearing will be held at 1724 F Street NW, Washington DC 20508 and will be open to the
public. USTR will make a transcript of the hearing available on www.regulations.gov
approximately two weeks after the hearing date.
All interested parties wishing to make an oral presentation at the hearing must
submit, following the “Requirements for Submissions” below, the name, address,
telephone number, and e-mail address (if available), of the witness(es) representing their
organization by midnight, June 26, 2019. Requests to present oral testimony in
connection with the public hearing must include a written brief or summary statement, in
English, which you also must submit by midnight, June 26, 2019. Oral testimony before
the GSP Subcommittee will be limited to five-minute presentations that summarize or
supplement information contained in briefs or statements submitted for the record. USTR
will accept post-hearing briefs or statements that conform to the regulations cited below
and you submit, in English, by midnight, August 15, 2019. Parties not wishing to appear
at the public hearing may submit pre-hearing and post-hearing briefs or comments by the
aforementioned deadlines.

D. Requirements for Submissions
You must submit requests to testify, written comments, and pre-hearing and posthearing
briefs by the applicable deadlines set forth in this notice. You must make all
submissions in English via http://www.regulations.gov, using Docket Number USTR-
2019-0001. USTR will not accept hand-delivered submissions. To make a submission
using http://www.regulations.gov, enter the appropriate docket number in the ‘search for’
field on the home page and click ‘search.’ The site will provide a search-results page
listing all documents associated with this docket. Find a reference to this notice by
selecting ‘notice’ under ‘document type’ in the ‘filter results by’ section on the left side
of the screen and click on the link entitled ‘comment now.’ The regulations.gov website
offers the option of providing comments by filling in a ‘type comment’ field or by
attaching a document using the ‘upload file(s)’ field. The GSP Subcommittee prefers that
you provide submissions in an attached document and note ‘see attached’ in the ‘type
comment’ field on the online submission form. At the beginning of the submission, or on
the first page (if an attachment) include the following text (in bold and underlined): (1)
“2019 GSP Annual Product Review”; (2) the subject matter or the product description
and related HTS tariff number; and (3) whether the document is a ‘written comment’,
‘notice of intent to testify,’ ‘pre-hearing brief,’ or ‘post-hearing brief.’ Submissions
should not exceed thirty single-spaced, standard letter-size pages in twelve-point type,
including attachments. Include any data attachments to the submission in the same file as
the submission itself, and not as separate files.
You will receive a tracking number upon completion of the submission procedure
at http://www.regulations.gov. The tracking number is confirmation that regulations.gov
received the submission. Keep the confirmation for your records. USTR is not able to
provide technical assistance for the website. USTR may not consider documents you do
not submit in accordance with these instructions. If you are unable to provide
submissions as requested, please contact the GSP Program at USTR to arrange for an
alternative method of transmission.

E. Business Confidential Submissions
If you ask USTR to treat information you submitted as business confidential
information (BCI), you must certify that the information is business confidential and you
would not customarily release it to the public. You must clearly designate BCI by
marking the submission “BUSINESS CONFIDENTIAL” at the top and bottom of the
cover page and each succeeding page, and indicating, via brackets, the specific
information that is BCI. Additionally, you must include ‘Business Confidential’ in the
‘type comment’ field. For any submission containing BCI, you must separately submit a
non-confidential version, i.e., not as part of the same submission with the confidential
version, indicating where BCI has been redacted. USTR will post the non-confidential
version in the docket and it will be open to public inspection.

F. Public Viewing of Review Submissions
Submissions in response to this notice, except for information granted business
confidential status under 15 CFR 2003.6, will be available for public viewing pursuant to
15 CFR 2007.6 at http://www.regulations.gov upon completion of processing, usually
within two weeks of the relevant due date or date of the submission. USTR will make
public versions of all documents relating to these reviews available for public viewing in
Docket Number USTR-2019-0001 at http://www.regulations.gov upon completion of
processing.

Gemini Shipper Group joins US Chamber of Commerce on Joint Statement on Mexico Tariffs

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Gemini Shippers Group joined the US Chamber of Commerce and numerous trade associations to issue the below joint statement regarding tariffs on Mexico

 

Joint Statement Regarding Tariffs on Mexico

Tariff-free trade in North America is a cornerstone of U.S. economic growth, supporting over 12 million American jobs and lowering prices for American consumers. The United States-Mexico-Canada Agreement (USMCA) is a considerable achievement that builds on these benefits by bringing North American trade into the 21st century with provisions that boost digital trade, enhance intellectual property protections, improve trade facilitation and help small businesses.

We, the undersigned associations, have committed to work with the Administration and both sides of the aisle in Congress to support congressional passage of USMCA. We are supportive of the constructive discussions members of the Administration have had with Members of Congress. But imposing unilateral tariffs on Mexico jeopardizes a successful bipartisan vote on USMCA and approval of the agreement.

Tariffs on Mexican imports would harm U.S. consumers, workers, farmers and businesses of all sizes across all sectors, making us less competitive and undermining efforts to negotiate strong trade deals in the future. We oppose unilateral tariffs and any subsequent retaliation. We are committed to working together to pass USMCA through Congress, but a successful effort depends on keeping North American trade tariff-free.

Associations that signed on to the above statement include:
Advanced Medical Technology Association (AdvaMed)
Aerospace Industries Association
Association of Home Appliances
American Apparel & Footwear Association
American Association of Exporters and Importers
American Association of Port Authorities
American Automotive Policy Council
American Chamber of Commerce in Mexico
American Chemistry Council
American Farm Bureau Federation
American Forest & Paper Association
American Frozen Food Institute
American Soybean Association
The Association For Manufacturing Technology
Arizona Chamber of Commerce and Industry
Arizona Manufacturers Council
Associated Industries of Massachusetts
Association of American Railroads
Boise Metro Chamber (Idaho)
Border Trade Alliance
BSA | The Software Alliance
Buffalo Niagara International Trade Gateway Organization
Buffalo Niagara Partnership
Business Roundtable
California Chamber of Commerce
Cedar Rapids Metro Economic Alliance (Iowa)
Charleston Metro Chamber of Commerce (South Carolina)
Coalition of Services Industries
Computing Technology Industry Association (CompTIA)
Corn Refiners Association
Council of the Americas
Distilled Spirits Council of the U.S.
Eau Claire Area Chamber of Commerce (Wisconsin)
Edwardsville/Glen Carbon Chamber of Commerce (Illinois)
Farmers for Free Trade
Fashion Jewelry & Accessories Trade Association
Footwear Distributors & Retailers of America
Fresh Produce Association of the Americas
Gemini Shippers Group
Georgia Chamber of Commerce
Greater Boston Chamber of Commerce (Massachusetts)
Greater Des Moines Partnership (Iowa)
Greater Louisville Inc. (Kentucky)
Greater Miami Chamber of Commerce (Florida)
Greater Oro Valley Chamber (Arizona)
Greater Phoenix Chamber (Arizona)
Greater Topeka Chamber of Commerce (Kansas)
Grocery Manufacturers Association
Hueneme Chamber of Commerce (California)
Industrial Minerals Association – North America
Information Technology Industry Council (ITI)
Institute of Scrap Recycling Industries, Inc.
International Wood Products Association
Internet Association
Iowa Chamber Alliance
IPC – Association Connecting Electronics Industries
Juvenile Products Manufacturers Association
Kansas Chamber of Commerce
Kansas Global Trade Services, Inc.
Kentucky Chamber of Commerce
Lancaster Chamber (Pennsylvania)
Little Rock Regional Chamber of Commerce (Arkansas)
Long Beach Area Chamber of Commerce (California)
Longview Texas Chamber of Commerce
Los Angeles Area Chamber of Commerce (California)
Loudoun County Chamber of Commerce (Virginia)
Marana Chamber of Commerce (Arizona)
Marshalltown Area Chamber of Commerce (Iowa)
Maryland Chamber of Commerce
Mason City Chamber of Commerce (Iowa)
Michigan Chamber of Commerce
Minneapolis Regional Chamber (Minnesota)
Mobile Area Chamber of Commerce (Alabama)
Motor & Equipment Manufacturers Association
National Association of Chemical Distributors
National Assolciation of District Export Councils
National Corn Growers Association
National Electrical Manufacturers Association
National Foreign Trade Council
National Milk Producers Federation
National Pork Producers Council
National Restaurant Association
National Retail Federation
National Small Business Association
North Carolina Chamber
New Mexico Association of Commerce and Industry
New Orleans Chamber
North American Meat Institute
North American Millers’ Association
North American Strategy for Competitiveness
North Country Chamber of Commerce (New York)
North San Antonio Chamber of Commerce (Texas)
North Texas Commission
Orange County Business Council (California)
Outdoor Industry Association
Outdoor Power Equipment Institute
Oxnard Chamber of Commerce (California)
Pennsylvania Chamber of Business & Industry
Personal Care Products Council
Plastics Industry Association
Plumbing Manufacturers International
Portland Business Alliance (Oregon)
Prattville Area Chamber of Commerce (Alabama)
Precision Metalforming Association
Railway Supply Institute
Reno + Sparks Chamber of Commerce (Nevada)
Rio Grande Valley Partnership (Texas)
Rogers Lowell Area Chamber Of Commerce (Arkansas)
Rolling Meadows Chamber (Illinois)
San Antonio Hispanic Chamber of Commerce (Texas)
San Diego Regional Chamber of Commerce (California)
San Gabriel Valley Economic Partnership (California)
San Ysidro Chamber of Commerce (California)
Schuylkill Chamber of Commerce (Pennsylvania)
Securities Industry and Financial Markets Association
Small Business & Entrepreneurship Council
Society of Chemical Manufacturers & Affiliates
South Bend Regional Chamber (Indiana)
Southern Arizona Chamber of Commerce Association
St. Joseph Chamber of Commerce (Missouri)
Surprise Regional Chamber of Commerce (Arizona)
TechNet
Telecommunications Industry Association
Texas Association of Business
Texas Association of Manufacturers
The Greater Kansas City Chamber of Commerce
Truck and Engine Manufacturers Association
Tucson Metro Chamber of Commerce (Arizona)
U.S. Apple Association
U.S. Chamber of Commerce
U.S. Dairy Export Council
U.S. Fashion Industry Association
United States Council for International Business
Vail Valley Partnership (Colorado)
Vinyl Institute
Washington Council on International Trade
Window and Door Manufacturers Association
World Trade Center Buffalo Niagara (New York)

 

Section 301 Tariff Update – China List 3 Tariff Increase Extended to June 15

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Friday evening the USTR issued a statement that they would be extending the increase of the List 3 tariffs from June 1 to June 15.

Originally, USTR had provided a “grace period” for shipments that were made prior to the May 10 tariff increase but wouldn’t arrive until June 1.  A Federal Register notice will be published next week with additional details.

In addition, U.S. Customs and Border Protection issued a CSMS Message – UPDATE: Section 301 (Tranche 3) Duties as of June 1, 2019 – noting that they have not yet updated ACE to reflect the extension.  They provide some initial guidance, but will publish additional guidance when the FR notice is published and ACE is updated.

We will update members as we learn more

Best Regards
Gemini Shippers Group

India Terminated from GSP on June 5

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India will be removed from the Generalized System of Preferences on June 5, because President Donald Trump “determined that India has not assured the United States that India will provide equitable and reasonable access to its markets.” The announcement came just after 8 p.m. on May 31. The end of GSP eligibility and removal of India’s developing country status also means India will be subject to safeguard duties on solar cells and washing machines as of June 5.

“Only a year after the Senate and House passed a three year reauthorization of GSP by a near unanimous margin, the Trump administration has kicked out the GSP country that saves American companies more money than any other,” said Coalition for GSP Executive Director Dan Anthony. “The administration made today’s decision in the face of opposition from members of Congress and hundreds of American businesses that have called for continued GSP eligibility for India.” Anthony said India’s exit from GSP will mean importers will pay more than $300 million a year in new duties.

List 4 HTS subheadings / commodities

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Dear Members,

Click here to view to the 4th list of products HTS subheading from China that are expected to be subject to additional duty rates of up to 25 percent.

The list includes  the following:
•    Apparel and accessory items, knitted, crocheted and woven – HTS chapters 61 & 62
•    Plastic items – chapter 39
•    Wood items – chapter 44
•    Calendars and paper goods – chapter 49
•    Bed and table linens – chapter 63
•    Footwear – chapter 64
•    Umbrellas – chapter 66
•    Artificial flowers and articles thereof – chapter 67
•    Porcelain or chinaware – chapter 69
•    Glassware – chapter 70
•    Metal items such as knives, manicure sets, luggage locks & padlocks, paper clips, ceiling fans, etc. – chapters 72-76, 82 & 83
•    Machinery, ovens, parts and tools – chapter 84
•    Wrist watches – chapter 91
•    Sports equipment – chapter 95
•    Art supplies and other items – chapter 96

This is not a complete list.   Please see the attached notice for full details.

We will continue to update members as we learn more.  Gemini Shippers Group will submit comments to the USTR on behalf of member companies prior to the June 17th meetings in Washington.  Members wishing to submit comments should contact the association office.

Best Regards
Gemini Shippers Group

Letter Opposing List 4 China Tariffs

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Gemini Shippers Group partnered with numerous trade associations to write to the President on section 301 tariff impacts.

 

President Donald J. Trump
The White House
1600 Pennsylvania Avenue
Washington, DC 20500

Dear Mr. President,

On behalf of the undersigned companies below and the millions of workers we employ, we are writing regarding the ongoing trade dispute between the U.S. and China. We agree that our trading partners must abide by global trade rules, and we support the administration’s efforts to address unfair trading practices, including intellectual property violations, forced technology transfer, and more. We encourage the administration to negotiate a strong deal with China that addresses longstanding structural issues, improves U.S. global competitiveness, and eliminates tariffs. We believe this goal can be achieved without taxing Americans.

We remain concerned about the escalation of tit-for-tat tariffs. We know firsthand that the additional tariffs will have a significant, negative, and long-term impact on American businesses, farmers, families, and the U.S. economy. Broadly applied tariffs are not an effective tool to change China’s unfair trade practices. Tariffs are taxes paid directly by U.S. companies, including those listed below— not China. According to The Trade Partnership, 25 percent tariffs on an additional $300 billion in imports would result in the loss of more than 2 million U.S. jobs, add $2,300 in costs for the average American family of four, and reduce the value of U.S. GDP by 1.0 percent. Furthermore, we have seen repeatedly that tariff increases and uncertainty around these trade negotiations have created turmoil in the markets, threatening our historic economic growth.

Mr. President, we support your efforts to hold our trading partners accountable, level the playing field for American businesses, and forge enforceable trade agreements. We urge your administration to get back to the negotiating table while working with our allies to develop global, enforceable solutions. An escalated trade war is not in the country’s best interest, and both sides will lose. We are counting on you to force a positive resolution that removes the current tariffs, fosters American competitiveness, grows our economy, and protects our workers and customers.

Sincerely,

CC Ambassador Robert Lighthizer, United States Trade Representative
Secretary Steven Mnuchin, Department of the Treasury
Secretary Wilbur Ross, Department of Commerce
Secretary Sonny Perdue, Department of Agriculture
Director Larry Kudlow, National Economic Council

Section 301 Tariff Update – List 4

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Members,
The US Trade Representative has posted the proposed Federal Register notice announcing the process for the proposed List 4 goods proposed under the China section 301 tariffs.You can view the draft Federal Register notice here.   The notice will be officially published in the Federal Register this week.The proposed 25% tariffs cover approximately $300 billion worth of imports from China. This represents, almost everything that is not already subject to the additional 301 tariffs.

The USTR will hold a public hearing on June 17th. Members wishing to testify or offer written comments should be aware of the below dates:

June 10, 2019: Due date for filing requests to appear and a summary of expected testimony at the public hearing.

June 17, 2019: Due date for submission of written comments.

June 17, 2019: The Section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E Street SW Washington DC 20436 that begins at 9:30 a.m.

Seven days after the last day of the public hearing: Due date for submission of post-hearing rebuttal comments.

Members who require more information on the process for submitting comments or testifying can contact the association office for details and assistance.
We will post the final Federal Register notice once published.

Additionally, the USTR issues the following notice with further clarification on the application of increased duties announced last week to list 3 items:  List 3 update

Finally, the administration announced that President Trump will meet with President Xi during the G-20 Summit at the end of June. A final decision on the List 4 tariffs will likely not be made before that meeting, but could come soon after.

We will continue to update members as we learn more

Best Regards
Gemini Shippers Group

Statement By U.S. Trade Representative Robert Lighthizer on Section 301 Action

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Statement By U.S. Trade Representative Robert Lighthizer on Section 301 Action

 05/10/2019

Washington, DC – U.S. Trade Representative Robert Lighthizer today released the following statement regarding additional action under Section 301 of the Trade Act of 1974:

“Earlier today, at the direction of the President, the United States increased the level of tariffs from 10 percent to 25 percent on approximately $200 billion worth of Chinese imports. The President also ordered us to begin the process of raising tariffs on essentially all remaining imports from China, which are valued at approximately $300 billion.”

The process for public notice and comment will be published shortly in the Federal Register. The details will be on the USTR website on Monday as we begin the process prior to a final decision on these tariffs.

CSMS# 19-000238 – UPDATE- Section 301 (Tranche 3) Duties as of May 10, 2019 05/10/2019 07:55 AM EDT

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Members,
Good morning, US CBP has issues further clarification on the implementation of section 301 tariffs. Salient points in the update in red below:
===========================================================================
CSMS# 19-000238 – UPDATE- Section 301 (Tranche 3) Duties as of May 10, 2019
05/10/2019 07:55 AM EDTBACKGROUND:
On August 18, 2017, the Office of the United States Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 into the government of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. On June 20, 2018, the USTR published a Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301(83 Federal Register (FR) 28710), imposing additional import duties on a list of Chinese products. On August 16, 2018, the USTR published a Notice of Action (83 FR 40823) providing for the imposition of additional import duties on a second list of Chinese Products.On September 21, 2018, the USTR published a Notice of Modification of Action in the Section 301(83 FR 47974) investigation providing for the imposition of additional import duties on over 5,700 full and partial eight-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) on goods imported from the People’s Republic of China (China). The September 21, 2018 list of products can be found in Annex A to the USTR’s September 21, 2018 Notice, and was amended on September 28, 2018 (83 FR 49153). The rate of additional duties was initially 10 percent and the duties were effective starting on September 24, 2018. The duty rate on these imports was originally scheduled to increase to 25 percent, but the increase was subsequently postponed.

On May 9, 2019, USTR published a Notice of Modification of Action (84 FR 20459) in the Section 301 investigation increasing the duty rate to 25 percent on imports from China on the over 5,700 full and partial eight-digit subheadings of the HTSUS listed in Annex A to the USTR’s September 21, 2018 Notice, as amended. USTR will also shortly publish a Federal Register Notice announcing the duty rate for such imports exported before May 10, 2019.

GUIDANCE:
The increase in additional import duties for Chinese goods covered by the September 21, 2018 Federal Register notice, as amended, is now effective on May 10, 2019. Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States on or after May 10, 2019, the rate of additional duties on imported articles classified in a subheading covered by the September 21, 2018 Federal Register notice, as amended, will be 25 percent ad valorem.

For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States on or after May 10, 2019, report the following HTS numbers and duty rates:

HTS:    9903.88.03 and 9903.88.04
Duty     Rate: 25 percent

For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and before June 1, 2019, and exported to the United States before May 10, 2019, report the following HTS number and duty rate:

HTS:          9903.88.09
Duty Rate: 10 percent

The subject imports of China that are entered into the United States on or after June 1, 2019 are subject to the 25 percent rate of additional duty under HTS 9903.88.03 and 9903.88.04.

The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export.

FOR FURTHER INFORMATION:
For further information, please refer to the USTR’s web site at USTR.gov and the Federal Register for official announcements on this matter.
Questions related to Section 301 entry filing requirements should be emailed to traderemedy@cbp.dhs.gov. Questions from the importing community concerning ACE rejections should be referred to their Client Representative.

Best Regards
Gemini Shippers Group

By | Customs & Trade Updates, Washington Newsline | No Comments
Members,
This afternoon US CBP issues the below notice on changes to Section 301 duties ( Tranche 3)  please note the the paragraphs highlighted in red below noting exceptions for cargo loaded for Export from China prior to May 10th. Will update as we recieve further clarification from CBPCSMS #19-000236  

Title: UPDATE-Change in Effective Date of Duty Increase of Section 301 (Tranche 3) Duties
Date: 5/9/2019 2:33:32 PM

On August 18, 2017, the Office of the United States Trade Representative (USTR) initiated an
investigation under Section 301 of the Trade Act of 1974 into the government of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.  On June 20, 2018, the USTR published a Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301(83 Federal Register (FR) 28710), imposing additional import duties on a list of Chinese products.  On August 16, 2018, the USTR published a Notice of Action (83 FR 40823) providing for the imposition of additional import duties on a second list of Chinese Products.

On September 21, 2018, the USTR published a Notice of Modification of Action in the Section 301(83 FR 47974) investigation providing for the imposition of additional import duties on over 5,700 full and partial eight-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) on goods imported from the People’s Republic of China (China).  The September 21, 2018 list of products can be found in Annex A to the USTR’s September 21, 2018 Notice, and was amended on September 28, 2018 (83 FR 49153).  The rate of additional duties was initially 10 percent and the duties were effective starting on September 24, 2018.  The duty rate on these imports was originally scheduled to increase to 25 percent, but the increase was subsequently postponed.

On May 9, 2019, the USTR published a Notice of Modification of Action (84 FR 20459) in the Section 301 investigation increasing the duty rate to 25 percent on imports from China on the over 5,700 full and partial eight-digit subheadings of the HTSUS listed in Annex A to the USTR’s September 21, 2018 Notice, as amended.

GUIDANCE:
The increase in additional import duties for Chinese goods covered by the September 21, 2018 Federal Register notice, as amended, is now effective on May 10, 2019.  Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States on or after May 10, 2019, the rate of additional duties on imported articles classified in a subheading covered by the September 21, 2018 Federal Register notice, as amended, will be 25 percent ad valorem.

For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States on or after May 10, 2019, report the following HTS numbers and duty rates:
HTS                                                                  Duty Rate
9903.88.03 and 9903.88.04                        25 percent

For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States before May 10, 2019, the 10 percent duty rate will still apply.  CBP is working with USTR on additional guidance on the entry filing requirements for these imports.

In the meantime, for goods entered on or after May 10, 2019, importers can pay the 25 percent duty and file a Post Summary Correction when filing instructions are available for the 10 percent duty.  Alternatively, importers can delay filing their entry summary within the standard ten-day entry summary filing period until additional filing instructions are available for the 10 percent duty.

The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export.

FOR FURTHER INFORMATION:
For further information, please refer to the USTR’s web site at USTR.gov and the Federal Register for official announcements on this matter.
Questions related to Section 301 entry filing requirements should be emailed to traderemedy@cbp.dhs.gov. Questions from the importing community concerning ACE rejections should be referred to their Client Representative.
Best Regards
Gemini Shippers Group