Category Archives: Washington Newsline

MEMORANDUM

USTR Proposes An Additional 10 Percent Ad Valorem Duty On Products Of China

July 11, 2018

The U.S. Trade Representative is requesting comments and providing notice of a public hearing on its proposal for an additional 10 percent tariff on approximately $200 billion worth of imports. Anyone wishing to testify for or against the inclusion of an item on the list must file by July 27, with written comments due by August 17. The USTR will hold hearings on August 20-23 and a decision on tariffs should be made sometime after August 30.

The USTR notice, posted after close of business July 10, indicates that the tariffs are being proposed because China has not acquiesced to U.S. demands after initial Section 301 tariffs set at 25 percent on $34 billion in Chinese goods.  Full details are in the notice, which lists the proposed targets by 8-digit subheadings of the HTSUS, including food, chemicals, pesticides, minerals, fabrics, construction materials, handbags, luggage, car parts, appliances, machines, televisions, items made from steel and aluminum, batteries, semiconductor assemblies, furniture and more.

Members

Gemini shippers group joined numerous associations in signing the attached letter supporting the Corker bill (S. 3013), which would require the President to submit to Congress any proposal to raise tariffs in the interest of national security under Section 232 of the Trade Expansion Act of 1962.  More than 270 national associations and state and local chambers of commerce signed onto the letter.

USA Today has an article about the letter which was just posted online.

You can find a copy of the letter here: 180626_Coalition_S3013_Senate

June 19, 2018

After President Trump directed the additional Section 301 tariffs that will go into effect on July 6^th, China announced its decision to implement 25 percent tariffs on $34 billion in U.S. imports,

In response to China’s actions, the President has directed the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent.

Per the White House statement, once the legal process is complete,

“these tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced. If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods.”

We will continue to monitor and provide you with updates as matters evolve.

USITC Begins Investigation Concerning Possible Modification to the U.S. Generalized System of Preferences

Pursuant to a request from the U.S. Trade Representative (USTR), the U.S. International Trade Commission (USITC) is seeking input for a newly initiated investigation concerning possible modifications to the Generalized System of Preferences (GSP).  The following are the relevant dates:

• June 4, 2018: Deadline for filing requests to appear at the public hearing.
• June 7, 2018: Deadline for filing pre-hearing briefs and statements.
• June 14, 2018: Public hearing.
• June 21, 2018: Deadline for filing post-hearing briefs and statements.
• June 21, 2018: Deadline for filing all other written submissions.
• September 7, 2018: Transmittal of Commission report to the USTR.

The USITC is to provide advice, and requests input, as to the probable economic effect of various scenarios, as detailed below:

1. On U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers of the addition of the following Harmonized Tariff Schedule (HTS) subheadings to the list of GSP-eligible products:

For all GSP beneficiary developing countries:

• 0808.30.40 (Pears, fresh, if entered during the period from July 1 through the following March 31, inclusive)
• 0814.00.80 (Peel of citrus fruit, excl. orange or citron and peel, nesi, of melon, fresh, frozen, dried or provisionally preserved)
• 1207.29.00 (Cotton seeds, whether or not broken, other than seed for sowing),
• 1512.11.00 (Sunflower-seed or safflower oil, crude, and their fractions, whether or not refined, not chemically modified),
• 2008.99.05 (Apples, otherwise prepared or preserved, nesi),
• 2918.99.05 (p-Anisic acid; clofibrate and 3-phenoxybenzoic acid),
• 2918.99.43 (Aromatic carboxylic acids with additional oxygen function and their anhydrides, halide, etc deriv described in add US note 3 to sect VI, nesoi),
• 2918.99.47 (Other aromatic carboxylic acids with additional oxygen function and their anhydrides, halide, etc deriv (excluding goods in add US note 3 to sec VI)),
• 4010.33.30 (Transmission V-belts of vulcanized rubber, V-ribbed, circumference exceeding 180 cm but not exceeding 240 cm, combined with textile materials).

2. On total U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers of the removal from eligibility of two HTS subheadings for certain GSP countries.

The removals in consideration are:

2009.89.6011 and 2009.89.6019 (Cherry juice – Part of 2009.89.60 “Juice of any other single fruit, nesoi”) from Turkey,

3920.51.50 (Nonadhesive plates, sheets, film, foil and strip, noncellular, not combined with other materials, of polymethyl methacrylate, not flexible) from Indonesia and Thailand.

3. On whether any industry in the United States is likely to be adversely affected by competitive need limitation waivers for certain countries and advice as to the probable economic effect on total U.S. imports, as well as on consumers, of the requested waivers. The USITC will also provide advice as to whether a like or directly competitive article was produced in the United States in any of the preceding three calendar years for these articles. Competitive need limitations represent the maximum import level of a product that is eligible for duty-free treatment under the GSP. Once the limit is reached, trade is considered competitive, benefits are no longer needed, and imports of the article become ineligible for GSP treatment, unless a waiver is granted.  With respect to the competitive need limit in section 503(c)(2)(A)(i)(I) of the 1974 Act, the USITC, as requested, will use the dollar value limit of $180 million. The HTS subheadings in consideration are:

• 0410.00.00 (Edible products of animal origin, nesi) from Indonesia,
• 2836.91.00 (Lithium carbonates) from Argentina,
• 3301.13.00 (Essential oils of lemon) from Argentina,
• 6802.99.00 (Monumental or building stone & arts. thereof, nesoi, further worked than simply cut/sawn, nesoi) from Brazil),
• 7202.50.00 (Ferrosilicon chromium) from Kazakhstan.

4. On U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers of the redesignation for certain countries of the following HTS subheadings:

• 2007.99.48 (Apple, quince and pear pastes and purees, being cooked preparations) from Argentina,
• 2306.30.00 (Oilcake and other solid residues, resulting from the extraction of vegetable fats or oils, of sunflower seeds) from Argentina,
• 2841.90.20 (Ammonium perrhenate) from Kazakhstan,
• 2909.50.40 (Odoriferous or flavoring compounds of ether-phenols, ether-alcohol-phenols & their halogenated, sulfonated, nitrated, nitrosated derivatives) from Indonesia,
• 4107.11.80 (Full grain unsplit whole bovine (not buffalo) nesoi and equine leather nesoi, w/o hair, prepared after tanning or crusting, fancy, not 4114) from Argentina,
• 6802.93.00 (Monumental or building stone & arts. thereof, of granite, further worked than simply cut/sawn, nesoi) from India,
• 7202.93.80 (Ferroniobium, nesoi) from Brazil.

5. On U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers of the redesignation of an article for one country. The USITC will also provide advice as to whether a like or directly competitive article was produced in the United States in any of the preceding three calendar years for this article. The HTS subheading in consideration is:

4412.31.41 including 4412.31.4150 and 4412.31.4160 (Plywood sheets n/o 6mm thick, with specified tropical wood outer ply, with face ply nesoi, not surface covered beyond clear/transparent) from Indonesia.

6. Finally, on total U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers, of the denial of a de minimis competitive need limitation waiver for one article from a GSP beneficiary country. The USITC will also provide advice as to whether a like or directly competitive article was produced in the United States in any of the preceding three calendar years for this article. The HTS subheading in consideration is:

3802.90.10 (Bone black) from Brazil.

The USITC is seeking input for this investigation from all interested parties and requests that the information focus on the articles for which the USITC is requested to provide information and advice. The USITC will hold a public hearing in connection with the investigation at 9:30 a.m. on June 14, 2018. Requests to appear at the public hearing should be filed no later than 5:15 p.m. on June 4, 2018, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.

The USITC also welcomes written submissions for the record. Written submissions should be addressed to the Secretary, United States International Trade Commission, 500 E Street SW, Washington, DC 20436 and submitted at the earliest practical date but no later than 5:15 p.m. on June 21, 2018.  The public record for this investigation may be viewed on the Commission’s electronic docket (EDIS) at https://edis.usitc.gov.

Gemini Shippers Group joined a host of industry association to provide Hearing Comments: Proposed Determination of
Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

you can read the latest letter here:  Multi-Industry Association China 301 Post Hearing Comments Letter Docket USTR-2018-0005 Final 052218

Gemini Shippers Group joined numerous trade associations  seeking support for a program that would promote the use of U.S. origin materials
incorporated into finished products abroad and returned to the U.S. Specifically, the program would only assess duties on the foreign value added abroad and not on the U.S. origin
materials. This would deduct the value of U.S. origin materials from the dutiable value of a finished good when that good is imported into the United States.

A copy of the letter can be found here:  U.S Content Letter Final