CSMS #41998518 – GUIDANCE: Section 301 Tranche 3 – $200B Ninth Round of Product Exclusions from China

By | Customs & Trade Updates, Washington Newsline | No Comments

CSMS #41998518 – GUIDANCE: Section 301 Tranche 3 – $200B Ninth Round of Product Exclusions from China

BACKGROUND

On February 20, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 9921 announcing the decision to grant the ninth round of certain exclusion requests from the Section 301 duty related to goods from China ($200B Action – Tranche 3) 83 FR 47974.

These product exclusions relate to the imposed additional duties announced in 83 FR 47974 on Chinese goods with an annual trade value of approximately $200 billion.  The product exclusions announced in 85 FR 9921 retroactively apply as of the September 24, 2018 effective date of the $200 billion action (Tranche 3), and will extend through August 7, 2020.

The exclusions are available for any product that meets the description as set out in Annex A to Federal Register Notice 85 FR 9921, regardless of whether the importer filed an exclusion request.  Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings and product descriptions in the Annex; not by the product descriptions set out in any particular request for exclusion.  For ease of reference, a link to the entire Federal Register Notice is embedded in this message.

The functionality for the acceptance of the ninth round of products of China excluded from Section 301 duties will be available in the Automated Commercial Environment (ACE) as of 7am eastern time, March 12, 2020.

GUIDANCE

Instructions for importers, brokers, and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 85 FR 9921 are as follow:

In addition to reporting the regular Chapters 28, 29, 40, 42, 44, 52, 54, 55, 56, 60, 65, 73, 76, 82, 83, 84, 85 and 94 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.40 (Articles the product of China, as provided for in U.S. note 20(ss) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative) for imported merchandise subject to the exclusion).
Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.40 is submitted.
ADDITIONAL INFORMATION

Imports which have been granted a product exclusion from the Section 301 measures, and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146.

Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of September 24, 2018.  To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe.  If the entry is beyond the PSC filing timeframe, importers may protest the liquidation.

Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer them to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required).

For ease of reference, a summary of Section 301 duties and product exclusion notifications are provided below:

Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative.  Questions related to Section 301 entry-filing requirements, please refer to CSMS message #40969690 (Information on Trade Remedy Questions and Resources) https://content.govdelivery.com/accounts/USDHSCBP/bulletins/27125da

Related CSMS Messages: #48134749, 40003027, 40002982, 40001360, 19-000052, 41702837, 41179115, 41052773, 41538917, 40984510, 40901928, 49710742, 40330403, 40208881, 40969690, 40564257, 39587690, 39587858, 39473933, 39268267, 93169565, 38840764, 19-000332, 19-000260, 19-000244, 19-000238, 19-000236, 19-000212

USTR Issues More Product Exclusions From Third Tranche of Section 301 Tariffs

By | Customs & Trade Updates, Washington Newsline | No Comments
USTR Issues More Product Exclusions From Third Tranche of Section 301 Tariffs
The Office of the U.S. Trade Representative issued another set of product exclusions from the third group of Section 301 tariffs on goods from China. The new exclusions from the tariffs include “one 10-digit HTSUS subheading,” which covers 6 requests, and “46 specially prepared product descriptions, which cover 61 exclusion requests,” according to the notice. The product exclusions apply retroactively to Sept. 24, 2018, the date the third set of tariffs took effect. The exclusions will remain in effect until Aug. 7, 2020.

 

Section 301 $200B – Tranche 3 Seventh Round of Product Exclusions from China

By | Customs & Trade Updates, Industry News, Washington Newsline | No Comments

Members

USCBP announced the following update on section 301 product exclusion today.

CSMS #41702837 – GUIDANCE: Section 301 $200B – Tranche 3 Seventh Round of Product Exclusions from China

On January 6, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 549 announcing the decision to grant the seventh round of certain exclusion requests from the 10 percent duty, and later amended to 25 percent duty, assessed under the Section 301 investigation related to goods from China ($200B Action – Tranche 3).

These product exclusions relate to the imposed additional duties announced in 83 FR 47974 on Chinese goods with an annual trade value of approximately $200 billion. The product exclusions announced in this notice retroactively apply as of the September 24, 2018 effective date of the $200 billion action (Tranche 3), and will extend through August 7, 2020.

The exclusions are available for any product that meets the description as set out in Annex A to Federal Register Notice 85 FR 549, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings and product descriptions in the Annex; not by the product descriptions set out in any particular request for exclusion. For ease of reference, a link to the entire Federal Register Notice is embedded in this message.

The functionality for the acceptance of the seventh round of products excluded from Section 301 duties is available in the Automated Commercial Environment (ACE) as of January 14, 2020.

GUIDANCE
Instructions for importers, brokers and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 85 FR 549 are as follow:

  • In addition to reporting the regular Chapters 34, 40, 42, 44, 54, 55, 56, 58, 73, 76, 79, 82, 84, 85, 87, 90 and 94 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.37 (Articles the product of China, as provided for in U.S. note 20(pp) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative) for imported merchandise subject to the exclusion.
  • Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.37 is submitted.

ADDITIONAL INFORMATION
Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of September 24, 2018. To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe. If the entry is beyond the PSC filing timeframe, importers may protest the liquidation.

Reminder: When submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer to CSMS #39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are Required).

Imports which have been granted a product exclusion from the Section 301 measures, and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146.

For ease of reference, a summary of Section 301 duties and product exclusion notifications are provided below:

For more information related to the seventh round of products of China excluded from Section 301 duties, please refer to 85 FR 549, issued January 6, 2020.

Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative. Questions related to Section 301 entry-filing requirements, please refer to CSMS message #40969690 Information on Trade Remedy Questions and Resources.

 

CSMS #41538917 – GUIDANCE: Decrease in Section 301 Duties on Certain Products of China; $300B-Action -Tranche 4A

By | Customs & Trade Updates, Washington Newsline | No Comments

Tooday, U.S. Customs and Border Protection issued a CSMS message with guidance for the List 4A tariff reduction which will take effect on February 14 – CSMS #41538917 – GUIDANCE: Decrease in Section 301 Duties on Certain Products of China; $300B-Action -Tranche 4A. Details of this message are posted below:

Cargo Systems Messaging Service

  CSMS #41538917 – GUIDANCE: Decrease in Section 301 Duties on Certain Products of China; $300B-Action -Tranche 4A

On August 20, 2019, the United States Trade Representative (USTR) published a Modification of Section 301 Action in 84 FR 43304 introducing another imposition of additional tariffs on products of China with an annual trade value of approximately $300 billion which is referred to as Tranche 4. The tariff subheadings subject to additional duties under Tranche 4 are separated into two lists with different effective dates – List 1, Trance 4A, covered by Annexes A and B, became effective September 1, 2019. The tariff subheadings subject to additional duties under list two (Tranche 4B) are addressed in Annexes C and D.

On January 22, 2020, USTR published in the Federal Register (85 FR 3714) the determination to modify the action being taken in the Section 301 Investigation for the additional duty rate to decrease from 15 percent to 7.5 percent for the products of China covered by the $300 billion tariff action Tranche 4/Annex A. Additionally, the assessment of additional duties on products of Annex C of the $300 billion section 301 trade remedy are suspended indefinitely per 84 FR 69447 (December 18, 2019).

GUIDANCE:
Products Covered by Tranche 4, Annex A (Described in Annex B) –
duty decrease from 15 percent ad valorem to 7.5 percent, effective February 14, 2020

Per 85 FR 3714, the decrease in import duties for Chinese goods covered by the Tranche 4, Annex A list of products subject to the Section 301 action are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on February 14, 2020.

Any article classified in a subheading covered by Annex A that is a product of China and that is entered, or withdrawn from warehouse for consumption, on or after February 14, 2020 is subject to the decreased Section 301 ad valorem duty rate of 7.5 percent, in addition to the general (Column 1) rate of duty for the imported merchandise. Therefore, in addition to any regular chapter reporting requirements, the following HTS number and duty rate must be reported:

 HTS                     Duty Rate 

9903.88.15           7.5 percent

Merchandise covered by Tranche 4A/Annex A that was admitted to a foreign trade zone under Privileged Foreign status will be subject to tariff classification at the rate of duty and tax in force on the date of filing the application for privileged foreign status. See 19 CFR 146.65(a)(1).

Immediate delivery procedures are not applicable.

For more information related to the decrease in duties imposed on the tariff subheadings for the products of China covered by the $300 billion tariff action Tranche 4, Annex A, refer to 85 FR 3714, issued January 22, 2020.

For questions on this and other trade remedy issues, please see Cargo Systems Messaging Service (CSMS) #40969690 – Information on Trade Remedy Questions and Resources.

Best regards

Gemini Shippers Group

Executive Order on Imposing Sanctions with Respect to Additional Sectors of Iran

By | Customs & Trade Updates, Washington Newsline | No Comments
Executive Order on Imposing Sanctions with Respect to Additional Sectors of Iran
The White House

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA), section 212(f) of the Immigration and Nationality Act of 1952 (8 U.S.C. 1182(f)), and section 301 of title 3, United States Code,

I, DONALD J. TRUMP, President of the United States of America, find that Iran continues to be the world’s leading sponsor of terrorism and that Iran has threatened United States military assets and civilians through the use of military force and support to Iranian-backed militia groups.  It remains the policy of the United States to deny Iran all paths to a nuclear weapon and intercontinental ballistic missiles, and to counter the totality of Iran’s malign influence in the region.  In furtherance of these objectives, it is the policy of the United States to deny the Iranian government revenues, including revenues derived from the export of products from key sectors of Iran’s economy, that may be used to fund and support its nuclear program, missile development, terrorism and terrorist proxy networks, and malign regional influence.

In light of these findings and in order to take further steps with respect to the national emergency declared in Executive Order 12957 of March 15, 1995, I hereby order:

Section 1.  (a)  All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in:  any person determined by the Secretary of the Treasury, in consultation with the Secretary of State:

(i)    to operate in the construction, mining, manufacturing, or textiles sectors of the Iranian economy, or any other sector of the Iranian economy as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State;

(ii)   to have knowingly engaged, on or after the date of this order, in a significant transaction for the sale, supply, or transfer to or from Iran of significant goods or services used in connection with a sector of the Iranian economy specified in, or determined by the Secretary of the Treasury, in consultation with the Secretary of State, pursuant to, subsection (a)(i) of this section;

(iii)  to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any person whose property and interests in property are blocked pursuant to this order; or

(iv)   to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order.

(b)  The prohibitions in this section apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted before the date of this order.

Sec. 2.   (a)  The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to impose on a foreign financial institution the sanctions described in subsection (b) of this section upon determining that the foreign financial institution has, on or after the date of this order, knowingly conducted or facilitated any significant financial transaction:

(i)   for the sale, supply, or transfer to or from Iran of significant goods or services used in connection with a sector of the Iranian economy specified in, or determined by the Secretary of the Treasury, in consultation with the Secretary of State, pursuant to, section 1(a)(i) of this order; or

(ii)  for or on behalf of any person whose property and interests in property are blocked pursuant to section 1 of this order.

(b)  With respect to any foreign financial institution determined by the Secretary of the Treasury, in consultation with the Secretary of State, in accordance with this section to meet the criteria set forth in subsection (a) of this section, the Secretary of the Treasury may prohibit the opening, and prohibit or impose strict conditions on the maintaining, in the United States of a correspondent account or a payable-­through account by such foreign financial institution.

(c)  The prohibitions in subsection (b) of this section apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted before the date of this order.

Sec. 3.  The unrestricted immigrant and nonimmigrant entry into the United States of aliens determined to meet one or more of the criteria in section l(a) of this order would be detrimental to the interests of the United States, and the entry of such persons into the United States, as immigrants or nonimmigrants, is hereby suspended, except where the Secretary of State determines that the person’s entry would not be contrary to the interests of the United States, including when the Secretary so determines, based on a recommendation of the Attorney General, that the person’s entry would further important United States law enforcement objectives.  In exercising this responsibility, the Secretary of State shall consult the Secretary of Homeland Security on matters related to admissibility or inadmissibility within the authority of the Secretary of Homeland Security.  Such persons shall be treated in the same manner as persons covered by section 1 of Proclamation 8693 of July 24, 2011 (Suspension of Entry of Aliens Subject to United Nations Security Council Travel Bans and International Emergency Economic Powers Act Sanctions).

The Secretary of State shall have the responsibility for implementing this section pursuant to such conditions and procedures as the Secretary has established or may establish pursuant to Proclamation 8693.

Sec. 4. I hereby determine that the making of donations of the types of articles specified in section 203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)) by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to section 1 of this order would seriously impair the President’s ability to deal with the national emergency declared in Executive Order 12957, and I hereby prohibit such donations as provided by section 1 of this order.

Sec. 5. The prohibitions in section 1 of this order include:

(a)  the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to this order; and

(b)  the receipt of any contribution or provision of funds, goods, or services from any such person.

Sec. 6.  (a)  Any transaction that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate any of the prohibitions set forth in this order is prohibited.

(b)  Any conspiracy formed to violate any of the prohibitions set forth in this order is prohibited.

Sec. 7.   For the purposes of this order:

(a)  The term “entity” means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization;

(b)  the term “foreign financial institution” means any foreign entity that is engaged in the business of accepting deposits, making, granting, transferring, holding, or brokering loans or credits, or purchasing or selling foreign exchange, securities, commodity futures or options, or procuring purchasers and sellers thereof, as principal or agent.  The term includes, but is not limited to, depository institutions, banks, savings banks, money service businesses, trust companies, securities brokers and dealers, commodity futures and options brokers and dealers, forward contract and foreign exchange merchants, securities and commodities exchanges, clearing corporations, investment companies, employee benefit plans, dealers in precious metals, stones, or jewels, and holding companies, affiliates, or subsidiaries of any of the foregoing.  The term does not include the international financial institutions identified in 22 U.S.C. 262r(c)(2), the International Fund for Agricultural Development, the North American Development Bank, or any other international financial institution so notified by the Secretary of the Treasury;

(c)  the term “Government of Iran” includes the Government of Iran, any political subdivision, agency, or instrumentality thereof, including the Central Bank of Iran, and any person owned or controlled by, or acting for or on behalf of, the Government of Iran;

(d)  the term “Iran” means the Government of Iran and the territory of Iran and any other territory or marine area, including the exclusive economic zone and continental shelf, over which the Government of Iran claims sovereignty, sovereign rights, or jurisdiction, provided that the Government of Iran exercises partial or total de facto control over the area or derives a benefit from economic activity in the area pursuant to international arrangements;

(e)  the term “knowingly,” with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result;

(f)  the term “person” means an individual or entity; and

(g)  the term “United States person” means any United States citizen, permanent resident alien, entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), or any person in the United States.

Sec. 8. For those persons whose property and interests in property are blocked pursuant to this order who might have a constitutional presence in the United States, I find that because of the ability to transfer funds or other assets instantaneously, prior notice to such persons of measures to be taken pursuant to this order would render those measures ineffectual.  I therefore determine that for these measures to be effective in addressing the national emergency declared in Executive Order 12957, there need be no prior notice of a listing or determination made pursuant to this order.

Sec. 9.  The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA as may be necessary to carry out the purposes of this order.  The Secretary of the Treasury may, consistent with applicable law, redelegate any of these functions within the Department of the Treasury.  All departments and agencies of the United States shall take all appropriate measures within their authority to implement this order.

Sec. 10. (a)  Nothing in this order shall be construed to impair or otherwise affect:

(i)   the authority granted by law to an executive department or agency, or the head thereof; or

(ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Sec. 11.  This order shall not apply with respect to any person for conducting or facilitating a transaction for the provision (including any sale) of agricultural commodities, food, medicine, or medical devices to Iran.

Sec. 12.  Nothing in this order shall prohibit transactions for the conduct of the official business of the United Nations (including its specialized agencies, programmes, funds, and related organizations) by employees, grantees, or contractors thereof.

Sec. 13.  The measures taken pursuant to this order are in response to actions of the Government of Iran occurring after the conclusion of the 1981 Algiers Accords, and are intended solely as a response to those later actions.

DONALD J. TRUMP
THE WHITE HOUSE,
January 10, 2020.

 

 

 

Gemini Shippers Group joins multi-association letter on preventing counterfeit goods.

By | Customs & Trade Updates, Washington Newsline | No Comments

Gemini Shippers Group , joined a multi-trade association letter sponsored by the Toy Association to the House Judiciary Committee bringing attention to the need for the US government to continue to address the issues of counterfeit goods

====================================================================================================================

Dear Chairman Nadler, Ranking Member Collins:

On behalf of the undersigned organizations representing U.S. rights holders and manufacturers, both large and small, we would like to thank the House Judiciary Committee for its vigorous support in bringing attention to the significant issue of the sale of unsafe counterfeits on ecommerce marketplaces.

While ecommerce has provided many opportunities for legitimate companies to grow and reach new consumers, it has also contributed significantly to a disturbing rise in illicit trade. The current online marketplace structure incentivizes a “hands off” approach to ensuring the quality, safety and authenticity of the products sold. The drive to quickly provide more products at cheaper prices has come at a significant cost—counterfeit products damage businesses, disregard regulatory protection and, at worst, threaten consumer health and safety. To effectively combat this, we encourage the committee to pursue legislation that would change the incentive structure by holding marketplaces to the same liability standard as brick-and-mortar stores in an effort to ensure the compliance of products sold on their sites.
As identified in a recent Organisation for Economic Cooperation and Development (OECD) report, trade in fake goods has grown steadily in the last few years, exceeding $500 billion and accounting for 3.3% of global trade. In this environment, the most robust efforts to address the sale of illicit goods have thus far been ineffective. Barring significant changes, marketplaces will continue to be rife with unsafe knockoffs that threaten U.S. consumers and businesses.
Trade in counterfeits, knockoffs and other intellectual property infringing items not only damages legitimate U.S. businesses, but also fuels other illicit crimes and poses significant safety risks for U.S. consumers. That’s why any solution must extend beyond merely addressing the trade in fakes and encompass measures that ensure the quality of the products we, as consumers, purchase every day. Consumers should have the same assurance that the products they purchase are compliant regardless of whether they are bought online or in a brick and mortar store. We represent companies that invest substantial resources to ensure the safety and quality of the products they sell, and U.S. laws hold our members accountable to do so. It’s time a system is established that evens the playing field.
To that end, we encourage Congress to establish a system that promotes accountability. We join together to support for legislation that makes third party intermediaries, including online marketplaces, liable for ensuring that products sold on their platforms comply with U.S. laws and regulations. We also encourage Congress to increase the requirements necessary for individuals to sell on ecommerce marketplaces by establishing a minimum threshold for submission and validation of identification, banking, and product authentication documentation. In tandem, these solutions would result in a greater assurance that the products U.S. consumers are purchasing are authentic and, more importantly, safe.
Moreover, many online marketplaces at present do not enforce effective policies for repeat infringers, including termination of sellers and all their related accounts and listings. For this reason, we also ask that Congress explore having online marketplaces implement a “three strike” or similar system that permanently bans bad actors from conducting illicit business on their platforms.
We are ready to work with you and members of the Committee to further raise awareness and develop solutions to combat the sale of counterfeits online. Please feel free to reach out to any one of the associations listed below to discuss how we can support this effort.

Section 301 updates for October 3rd, 2019

By | Customs & Trade Updates, Washington Newsline | No Comments

USTR issued two Federal Register notices granting new exclusions for about 200 HTS lines that fall under List 1 and List 2.  CBP will provide additional guidance for the exclusions in the coming days.

  • List 1 Exclusions – Retroactive to July 6, 2018 and will expire on October 2, 2020.
  • List 2 Exclusions – Retroactive to August 23, 2018 and will expire on October 2, 2020.

USTR is still working through their process on the proposed increase of the tariffs on Lists 1-3 from 25 to 30 percent.  The tariff increases were supposed to take effect on October 1, but was delayed to October 15 based upon a tweet from President Trump.  USTR has said that they will publish a Federal Register soon regarding the proposed increase.  As a reminder, the proposed increase in the tariffs were subject to notice and comments.  AFT submitted comments in opposition to the proposed increase.  We will share the FR notice as soon as it’s published.

Gemini Shippers Group joined members of American for Free Trade coalition in the following letter to the US Trade Representative

By | Customs & Trade Updates, Gemini News, Washington Newsline | No Comments

Gemini Shippers Group joined members of American for Free Trade coalition in the following letter to the US Trade Representative.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

 

Submitted via www.regulations.gov.

September 20, 2019
The Honorable Robert E. Lighthizer
United States Trade Representative
600 Seventeenth Street, N.W.
Washington, D.C. 20508

Re: Request for Comments Concerning Proposed Modification of Action Pursuant to
Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer,
Intellectual Property, and Innovation (Docket Number USTR-2019-0015)

Dear Ambassador Lighthizer,

On behalf of the Americans for Free Trade coalition, we are writing to strongly oppose
the proposed increase of the China 301 tariffs on Tranches 1-3 from 25 percent to 30 percent. We
agree that China and other trading partners must be held accountable for trade violations.
However, the use of broadly applied tariffs has not resulted in change in policy and is continuing
to harm U.S. businesses, workers and consumers.

Our coalition represents every part of the U.S. economy, including manufacturers,
farmers and agribusinesses, retailers, technology companies, service suppliers, natural gas and
oil companies, importers, exporters and other supply chain stakeholders. Collectively, we
support tens of millions of American jobs through our vast supply chains.

According to data released by our coalition, American businesses paid an additional $6.8
billion in tariffs in July 2019 alone, the most recent month data is available from the U.S. Census
Bureau. This represents a $6.8 billion tax increase to U.S. companies. The data also shows that
U.S. exports have continued a downward spiral because of China’s retaliatory tariffs.
We continue to hear and see story after story about the negative impacts of the tariffs on
businesses large and small. Because of increased costs and ongoing uncertainty surrounding the
U.S.- China trade relationship, many companies are being forced to hold back on planned
investments, refrain from hiring new employees or pass along price increases to their customers.
While the economy remains strong, there continue to be clouds on the horizon that could result
in further weakening.

USTR asks specifically whether or not the additional duties would be “practicable or
effective” to obtain the elimination of China’s acts, policies and practices, and whether
increasing the tariff rate would cause disproportionate economic harm to U.S. interests, including
small- or medium-sized businesses and consumers. To date, the tariffs have not been a
practicable or effective tool in obtaining changes to China’s acts. We do not believe an increase
of 5 percent, or any other increase that may be planned, will be effective. However, we do
believe the planned tariff increase, or any other, will cause economic harm to U.S. interests.
This is especially true of small- and medium-sized businesses that bear the brunt of the tariff
increases. These companies especially have less flexibility to mitigate the impact of the tariffs by
shifting sourcing, absorbing the tariff or passing the tax increase on to their customers.
We call upon the administration to forgo the tariff increase on Tranches 1-3 and use the
upcoming October negotiating session as an opportunity to achieve a path forward on a final deal
with China that will address the ongoing trade issues and remove the tariffs.

Sincerely,

Accessories Council
Agriculture Transportation Coalition (AgTC)
ALMA, International (Association of
Loudspeaker Manufacturing and Acoustics)
American Apparel & Footwear Association
(AAFA)
American Association of Exporters and Importers
(AAEI)
American Association of Port Authorities
American Bakers Association
American Bridal & Prom Industry Association
(ABPIA)
American Chemistry Council
American Down and Feather Council
American Fly Fishing Trade Association
American Home Furnishings Alliance
American Lighting Association
American Petroleum Institute
American Pyrotechnics Association
American Rental Association
American Specialty Toy Retailing Association
American Wind Energy Association
Arizona Technology Council
Arkansas Grocers and Retail Merchants
Association
Association For Creative Industries
Association for PRINT Technologies
Association of Equipment Manufacturers (AEM)
Association of Home Appliance Manufacturers
Auto Care Association
Beer Institute
BSA | The Software Alliance
California Retailers Association
Carolina Loggers Association
Chemical Industry Council of Delaware (CICD)
Coalition of New England Companies for Trade (CONECT)
Coalition of Services Industries (CSI)
Colorado Retail Council
Columbia River Customs Brokers and Forwarders Assn.
Computer & Communications Industry Association (CCIA)
Computing Technology Industry Association (CompTIA)
Consumer Technology Association
Council of Fashion Designers of America (CFDA)
CropLife America
Customs Brokers & Freight Forwarders Assn. of
Washington State
Customs Brokers & Freight Forwarders of Northern
California
Distilled Spirits Council of the United States
Electronic Transactions Association
Fashion Accessories Shippers Association (FASA)
Fashion Jewelry & Accessories Trade Association
Flexible Packaging Association
Florida Ports Council
Florida Retail Federation
Footwear Distributors and Retailers of America (FDRA)
Fragrance Creators Association
Game Manufacturers Association
Gemini Shippers Association
Georgia Retailers
Global Chamber®
Global Cold Chain Alliance
Greeting Card Association
Grocery Manufacturers Association
Halloween Industry Association
Hobby Manufacturers Association
Home Fashion Products Association
Home Furnishings Association
Household and Commercial Products Association
Idaho Retailers Association
Illinois Retail Merchants Association
Independent Office Products & Furniture Dealers
Association (IOPFDA)
Indiana Retail Council
Information Technology Industry Council (ITI)
International Bottled Water Association (IBWA)
International Foodservice Distributors Association
International Housewares Association
International Precious Metals Institute
International Warehouse and Logistics Association
International Wood Products Association
Internet Association
ISSA – The Worldwide Cleaning Industry
Association
Juice Products Association (JPA)
Juvenile Products Manufacturers Association
Licensing Industry Merchandisers’ Association
Los Angeles Customs Brokers and Freight
Forwarders Assn.
Louisiana Retailers Association
Maine Grocers & Food Producers Association
Maine Lobster Dealers’ Association
Maritime Exchange for the Delaware River and
Bay
Maryland Retailers Association
Methanol Institute
Michigan Chemistry Council
Minnesota Retailers Association
Missouri Retailers Association
Motor & Equipment Manufacturers Association
Motorcycle Industry Council
NAPIM (National Association of Printing Ink
Manufacturers)
National Association of Chain Drug Stores
(NACDS)
National Association of Chemical Distributors
(NACD)
National Association of Foreign-Trade Zones
(NAFTZ)
National Association of Home Builders
National Association of Music Merchants
National Association of Printing Ink Manufacturers
National Association of Trailer Manufacturers
(NATM)
National Confectioners Association
National Council of Chain Restaurants
National Customs Brokers and Freight Forwarders
Association of America
National Electrical Manufacturers Association (NEMA)
National Fisheries Institute
National Foreign Trade Council
National Grocers Association
National Lumber and Building Material Dealers
Association
National Marine Manufacturers Association
National Restaurant Association
National Retail Federation
National Ski & Snowboard Retailers Association
National Sporting Goods Association
Natural Products Association
New Jersey Retail Merchants Association
North American Association of Uniform
Manufacturers and Distributors (NAUMD)
North Carolina Retail Merchants Association
Ohio Council of Retail Merchants
Outdoor Industry Association
Pacific Coast Council of Customs Brokers and
Freight Forwarders Assns. Inc.
Pennsylvania Retailers’ Association
PeopleforBikes
Personal Care Products Council
Pet Industry Joint Advisory Council
Petroleum Equipment & Services Association
Plumbing Manufacturers International
Power Tool Institute (PTI)
Promotional Products Association International
Recreational Off-Highway Vehicle Association
Retail Association of Maine
Retail Council of New York State
Retail Industry Leaders Association
Retailers Association of Massachusetts
RISE (Responsible Industry for a Sound Environment)
RV Industry Association
San Diego Customs Brokers and Forwarders Assn.
SEMI
Snowsports Industries America
Society of Chemical Manufacturers & Affiliates
Software & Information Industry Association (SIIA)
South Dakota Retailers Association
Specialty Equipment Market Association
Specialty Vehicle Institute of America
Sports & Fitness Industry Association
TechNet
Telecommunications Industry Association (TIA)
Texas Retailers Association
Texas Water Infrastructure Network
The Airforwarders Association
The Fertilizer Institute
The Hardwood Federation
The Toy Association
The Vinyl Institute
Travel Goods Association
Truck & Engine Manufacturers Association (EMA)

U.S. Hide, Skin and Leather Association
United States Council for International Business
United States Fashion Industry Association
US Global Value Chain Coalition
US-China Business Council
Virginia Retail Merchants Association
Virginia-DC District Export Council (VA-DC DEC)
Washington Retail Association
Window and Door Manufacturers Association
World Pet Association, Inc. (WPA)

Have your team join the fight against tariffs – Employee Petition Tool now live

By | Customs & Trade Updates, Gemini News, Washington Newsline | No Comments

The Tariffs Hurt the Heartland campaign has developed an Employee Petition Tool to allow your employees, vendors and customers to sign a letter opposing the tariffs that will be delivered to the White House and Congress. The letter will be issued when we have a critical mass of signatures. Only signers names, city and state will appear on the final letter.

We strongly encourage you to share this tool with your employees, customers and other vendors so they can make their voice heard.