China tariff cuts coming soon?

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Last Thursday, the US Trade Representative’s office said they were seeking public comments on lifting additional Section 301 duties (tariffs) on Chinese imports for goods that could help the US fight the current coronavirus pandemic.

The public comments will allow anyone to submit comments if they believe modifications to the Section 301 tariffs may be necessary. Since the corona virus crisis started, the USTR granted exclusions for medical products from China that included medical masks, examination gloves and antiseptic wipes.

Even with the exclusions, the 20-month long duration of the Section 301 China duties still covers over $370 billion in Chinese imports.

A trade deal came into effect on February 15th known as “Phase 1”, but no new trade deals will be announced until after the corona virus crisis ends.

If you have would like to submit comments on what other goods should be excluded – contact experienced customs and trade law attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

What’s the current status of France’s proposed digital tax?

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Last year, France threatened a “digital tax” of 3% on digital revenue of big tech companies such as Facebook and Google. In response, the US threatened tariffs on $2.4 billion of French goods such as wine, cheese, and makeup.

On Monday, January 20th, France said they would delay the the tariffs for the remainder of 2020 in response to US pressure.

And earlier today, at the Davos World Economic Forum, US Treasury Secretary Steven Mnuchin reiterated the Trump administration’s claim a digital tax is discriminatory and in response, he threatened tariffs on auto manufacturers if a deal does not work out and the digtal tax is put into effect.

What’s next? Treasury Secretary Mnuchin and his counterpart, France’s foreign minister Bruno Le Maire met earlier today (Wednesday January 22nd), but no news has been released about an agreement between the US and France. Will post more news as it is released.

US China Trade Deal as of 12/13/2019.

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Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

As you are aware, the Trump administration has confirmed a trade deal with China has been reached.

Phase one of the trade deal was just announced:

-List 1 remains at 25%

-List 2 remains at 25%

-List 3 remains at 25%

-List 4b is gone (4b was initially scheduled to take effect December 15th, and included consumer electronics such as cell phones, laptops, computers, etc.).

-“Most” (not all) of List 4a is going to drop to 7.5%.

We will monitor the Federal Register for what specifically is being reduced. If you have any further questions, contact experienced trade attorney David Hsu for immediate help by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Phase 1 of the China trade deal explained.

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Earlier this week, US and Chinese representatives met for the 13th time in ongoing negotiations to reach a trade deal. On Friday, President Trump outlined what has been referred to as “Phase 1”:
1. Suspension of tariff hike set for October 15th that would have increased tariffs from 25% to 30% on $250 billion in Chinese goods.
2. Some intellectual property protections on copyrights, trademarks and piracy (no movement on technology transfers, data flows, cyber security, product standard reviews or the new social credit system.
3. China’s commitment to purchase $50 billion in US agricultural products
The announcement is short on details and more information should be available in 5 weeks and details will be posted as soon as they are available.
If you have any questions how these duties will impact your business, or for any questions on trade with China, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

US to tax goods from Europe – airplanes, agriculture and industrial products.

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Earlier this week, President Trump’s administration announced the imposition of tariffs on European goods covering a wide range of goods, from aircraft, to wine, cheese, olive oil and many more items starting October 18th.

The move comes after the World Trade Organization granted the US permission to tax European exports annually to the amount of $7.5 billion in response a US complaint over subsidies given to the European plane manufacturer Airbus. The $7.5 billion in tariffs is annually and continues until an agreement is reached.

The list of goods subject to tariffs will place a 25% tariff on Parmesan cheese, coffee, mussels, single malt whiskeys and other agricultural goods from Europe in addition to a 10% tariff on European aircraft.

If you have any questions how this may impact your business, contact experienced trade and customs attorney David Hsu by phone/text at 832-896-6288, or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

 

 

 

USTR to open comment period on List 4.

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This past Thursday, the US Trade Representative (USTR) gave formal notice of the plan to raise tariffs on $300 billion of Chinese imports from 10% to 15% starting December 15th. The formal notice starts the opportunity for importers or anyone impacted by the potential tariffs to submit comments. The comments are an opportunity for businesses to tell the White House why the tariffs are good or bad. As in the past, comments have been both supportive and critical of the potential tariffs.
This round of tariffs encompasses goods on “List 4” and includes mostly consumer goods – such as smartphones, computers, and other consumer electronics.
If you want to submit comments regarding any goods on “List 4”, contact experienced trade and customs attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

US will not impose additional tariffs on Japanese automobiles.

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According to Reuters, President Trump and Japanese Prime Minister Shinzo Abe met last Sunday at the G7 Summit – agreeing that the current duties on cars remain at 2.5% for passenger vehicles and 25% for pickup trucks from Tokyo. Previously, the US did threaten Japan with additional duties of 25% on auto exports to the US under the premise of national security.

U.S. President Donald Trump on Monday said the United States would not imminently impose new tariffs on autos imported from Japan as the largest and third-largest economies continue their trade negotiations. Japan would also agree to greater market access for US agricultural products such as beef and to increase purchases of US corn.

Trump delays List 4 tariffs until December 14th.

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The Trump administration has postponed the levying of 10% tariffs on List 4 goods covering $300 billion in imports from China until December 15th. The initial date of September 1st was postponed after reports of a phone call with Beijing.

A new round of trade talks will be held in September after this month’s talks did not result in a trade deal.

There is still time to lower your import risk, if you would like solutions to lowering the duties you need to pay, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

US collected $63 billion in tariffs through June.

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According to the Wall Street Journal, the Treasury department’s tariffs is expected to generate almost $72 billion in tariffs through June of this year. This number will likely go much higher if the “List 4” duties take effect on September 1st. On September 1st, over $300 billion in Chinese goods will be subject to a 10% tariff with a potential to increase to 25%.

Specifically, as of June 30th, the Treasury department has collected $63 billion in tariffs over the past 12 months. In contrast, prior to the trade war, the US only brought in $30 billion dollars.

The WSJ estimates the annual generated amount can be as high as $100 billion by the end of the year once the 10% duties are placed on over $300 billion worth of imported goods from China.

If you have any questions how the current 301 duties or proposed List 4 duties will impact you, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

I want to file a 301 exclusion – what info do I need to provide the USTR?

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As you are aware, the exclusion process for List 3 is now openuntil September. We have received a lot of exclusion requests and I thought I’d share the information the US Trade Representative (USTR) requires in order to review an exclusion request:

1. 10-digit subheading of the HTSUS applicable, use 8/10 digits (if there are different HTSUS 8 and 10 digit codes used, we will need a separate request)

2. Product name

3. Detailed description of the product: (1) physical characteristics (e.g., dimensions, weight, material composition, etc.). (2) Requestors may submit a
range of comparable goods within the product definition set out in an exclusion request. Thus, a product request may include two or more goods with
similar product characteristics or attributes. Goods with different SKUs, model numbers, or sizes are not necessarily different products.

4. The products function, application (whether the product is designed to function in or with a particular machine or other device), principal use, and any
unique physical features that distinguish it from other products within the covered 8-digit HTSUS subheading. Requestors may submit attachments that
help distinguish the product (e.g., CBP rulings, photos and specification sheets, and previous import documentation). Documents submitted to support a
Requestor’s product description must be made available for public inspection and contain no BCI. USTR will not consider requests that identify the
product using criteria that cannot be made available for public inspection.

5. Requestors must provide their relationship to the product (Importer, U.S. Producer, Purchaser, Industry Association, Other) and provide specific data
on the annual quantity and value of the Chinese-origin product, domestic product, and third-country product the Requestor purchased, in 2017, 2018,
and the first quarter of 2019.

6. Requestors must provide information regarding their company’s gross revenues for 2018, the first quarter of 2018, and the first quarter of 2019.

7 For imports sold as final products, Requestors must provide the percentage of their total gross sales in 2018 that sales of the Chinese-origin product
accounted for.

8. For imports used in the production of final products, Requestors must provide the percentage of the total cost of producing the final product(s) the
Chinese-origin input accounts for and the percentage of their total gross sales in 2018 that sales of the final product(s) accounted for. Required
information regarding the Requestor’s purchases and gross sales and revenue is BCI and the information entered will not be publicly viewable.

9. Whether the particular product is available only from China and whether the particular product and/or a comparable product is available from sources
in the United States and/or in third countries. The Requestor must provide an explanation if the product is not available outside of China or the Requestor
is not sure of the product availability.

10. Whether the Requestor has attempted to source the product from the United States or third countries.

11. Whether the imposition of additional duties (since September 2018) on the particular product has or will cause severe economic harm to the
Requestor or other U.S. interests.

12. Whether the particular product is strategically important or related to “Made in China 2025” or other Chinese industrial programs.

If you have any questions about the exclusion request process, contact experienced attorney trade attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com.