Section 301 Duties to be announced by June 15, 2018.

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According to a Whitehouse.gov statement released today (May 29, 2018) titled: “Statement on Steps to Protect Domestic Technology and Intellectual Property from China’s Discriminatory and Burdensome Trade Practices” found here, the US will impose a 25% tariff on $50 billion of goods imported from China “containing industrially significant technology, including those related to the “Made in China 2025” program.  The final list of covered imports will be announced by June 15, 2018, and tariffs will be imposed on those imports shortly thereafter.

What is the “Made in China 2025” Program?
Made in China 2025 (Chinese: 中国制造2025) is a plan issued by Chinese Premier Li Keqiang in May 2015 to make China more self-sufficient and a manufacturing superpower in high-tech industries. An English version of the initiative can be found here.

What is Section 301?
Section 301 of the U.S. Trade Act of 1974, authorizes the President to take all appropriate action, including retaliation, to obtain the removal of any act, policy, or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable, or discriminatory, and that burdens or restricts U.S. commerce.

Section 301 is worded in general terms and allows for broad discretion from the President.

What are other points mentioned in the press release?

  1. There will also be other restrictions and increased export controls for Chinese persons and entities and will be announced on June 30, 2018.
  2. The US will continue litigating in the WTO for violations of intellectual property against China related to licensing of intellectual property. The US filed the case with the TWO on March 23, 2018.

Check back here on June 15, 2018 for the final list and tariff amounts to be imposed on the goods from China. If you have any questions how these Section 301 tariffs will impact your business, contact David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

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