Tricks of the Trade

U.S. – China Trade War Heats Up Even More!

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. (more…)

Brief Updates on China 301 List 3

By Susan Kohn Ross

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 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.

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

8/7/18 UPDATE:

In the August 7, 2018 Federal Register, U.S. Trade Representative Lighthizer published the latest official timeline for those planning to participate in the China 301 List 3 proceedings. The relevant dates are:

  • August 13, 2018 – due date for filing requests to be a witness and a summary of expected testimony;
  • August 20-23, 2018 – public hearing dates;
  • September 6, 2018 – due date of submission of comments and post-hearing rebuttal comments – this deadline was previously announced as September 5, 2018.

For those planning to participate in this part of the 301 case, these are the dates by which to be governed.

Talking Trade: The Latest on 232 & 301

July 10, 2018
Talking Trade: 301 & 232 – What’s New

In this video blog, MSK Partner & International Trade Practice Chair Susan Kohn Ross covers what’s new with the 301 & 232 tariffs, including exclusions, the timeline, the 232 process, alternate sourcing, and more.

July 11, 2018
Talking Trade: China 301 – List 3 is Here

In this video, Su Ross provides the update that the new List 3 is now a reality and further explores what this new List entails. For more information on List 3, see this alert.

China 301: List 3 Now A Reality

China United States Trade Solution

Photo credit: iStock.com/wildpixel

By Susan Kohn Ross

Late on July 10, 2018, U.S. Trade Representative Lighthizer released a list of the next Chinese-made products targeted for additional duties, this time at a 10% rate and worth about $200 billion. The statement in support of this action can be found here, and the list of affected products here. As before, the list of products is released in Federal Register pre-publication format.

The dates to keep in mind are as follows… (more…)

China 301 Tariffs Took Effect – What Happens Next?

China tariffs

Photo credit: iStock.com/ANNECORDON

By Susan Kohn Ross

The U.S. Trade Representative (“USTR”) issued a press release on July 6, 2018 in which the process companies can use to seek exclusion from the 25% tariff imposed on the same day on goods from China was announced. The timeline requires all original exclusion requests to be filed by October 9, 2018. Each will be reviewed to insure completeness and will then be posted for public review, and 14 days from the date of any posting, all objections are due. No more than 7 days later, any applicant may file its reply. All such submissions are filed through regulations.gov and must reference Docket No. USTR-2018-0025. (more…)

To Tariff or Not to Tariff – That Is The Question!

By Susan Kohn Ross

In the current tit for tat environment that overhangs international trade, below is an update regarding the 232 tariffs on steel and aluminum, the 301 tariffs related to China’s intellectual property rights and other business practices, and the 232 tariffs threatened on automobiles and parts.

Steel and Aluminum Tariffs:

As everyone by now knows, effective March 23, 2018, the U.S. imposed a 25% tariff on selected steel products and a 10% tariff on selected aluminum products.  The basis for this action was a finding by the Dept. of Commerce that foreign competition had essentially undermined U.S. steel and aluminum production capabilities and so triggered national security concerns.  In this context national security equates to economic security.  The shorthand reference in this context is 232, the section of the law -The Trade Expansion Act of 1962 – under which the Administration acted. (more…)

25% Tariff Imposed on Chinese Goods

port

Photo credit: iStock.com/nattanan726

By Susan Kohn Ross

The U.S. Trade Representative (USTR) today issued two lists of products on which the U.S. seeks to impose tariffs on goods made in China at a 25% rate. The lists together cover 1,102 tariff lines valued at approximately $50 billion. According to the USTR’s release, the list of products settled on was intended to focus on “products from industrial sectors that contribute to or benefit from the ‘Made in China 2025’ industrial policy,” and include aerospace, information and communications technology, robotics, industrial machinery, new materials and automobiles. Cellular telephones and televisions are not included. (more…)

232 Auto Investigation Timeline Published

By Susan Kohn Ross

The Federal Register notice advising the timeline which applies to the Administration’s 232 investigation regarding automobiles and parts was published on May 30, 2018.  The relevant time frame requires that written comments are due by June 22, 2018 and rebuttal comments by July 6, 2018.  A public hearing will be held on July 19 and 20, 2018.  All comments should be filed through www.regulations.gov referring to Docket Number DOC-2018-0002.

In particular, Commerce wants information about:

  • The quantity and nature of imports of automobiles, including cars, SUVs, vans and light trucks, and automotive parts and other circumstances related to the importation of automobiles and automotive parts;
  • Domestic production needed for projected national defense requirements;
  • Domestic production and productive capacity needed for automobiles and automotive parts to meet projected national defense requirements;
  • The existing and anticipated availability of human resources, products, raw materials, production equipment, and facilities to produce automobiles and automotive parts;
  • The growth requirements of the automobiles and automotive parts industry to meet national defense requirements and/or requirements to assure such growth, particularly with respect to investment and research and development;
  • The impact of foreign competition on the economic welfare of the U.S. automobiles and automotive parts industry;
  • The displacement of any domestic automobiles and automotive parts causing substantial unemployment, decrease in the revenues of government, loss of investment or specialized skills and productive capacity, or other serious effects;
  • Relevant factors that are causing or will cause a weakening of our national economy;
  • The extent to which innovation in new automotive technologies is necessary to meet projected national defense requirements;
  • Whether and, if so, how the analysis of the above factors changes when U.S. production by majority U.S.-owned firms is considered separately from U.S. production by majority foreign-owned firms; and
  • Any other relevant factors. (more…)

Which Way Is Up?

By Susan Kohn Ross

Living true to the times, it is nearly impossible to find predictability in current events. That fact makes it quite challenging for businesses, and we have recent events adding to the confusion.

One notable example is that on June 1, the suspension of the 232 tariffs on steel (25%) and aluminum (10%) expire on the relevant goods from Australia, Argentina, Brazil, Canada, Mexico and the EU member countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and United Kingdom.  Last reports indicate that negotiations with Australia continue, while the NAFTA renegotiations with Canada and Mexico seem mired in the automobile domestic content requirement.  (more…)