By Susan Kohn Ross

Update on the China 301 List 3 Products

On August 1, 2018, USTR Lighthizer issued a press release indicating he was following through with President Trump’s direction and will consider raising the rate of duty from 10% to 25% on those products on the China 301 List 3. A formal notice in the Federal Register is expected soon.

Mr. Lighthizer also announced the written comment period is being extended to September 5, 2018, while the deadline to request to appear at the public hearing is changed to August 13, 2018. The hearing itself is still scheduled for August 20 to 23, 2018.

Then on August 2, there was a new publication which appeared on the USTR website. In it, USTR clarified the August 17, 2018 deadline for comments regarding products on the China 301 List 3 has also been extended to September 5, 2018.

China Retaliates

On August 3, 2018, China announced it would retaliate on more U.S. made products. Specifically, the Taxation Committee published four (4) lists of products from the U.S. and Canada, which will now be subject to increased duties.

The first is a list subject to a 25% rate that consists of 2,493 products. The second list consists of 1,078 items on which a 20% rate will apply.  An additional 974 products are subject to 10% more and finally 662 items which are subject to an additional 5% duty.

Clarification was also provided as how the retaliatory rates are applied. The importer must add the value of the goods plus the basic tariff amount, and then assess retaliatory duty on the combined total. There are additional value added and consumption taxes which may also be due.

While not yet implemented, the announcement itself can be found here and the annexes here – 25%, 20%, 10% and 5%.