US Trade Representative Announce Duty Increases Section 301 Third List

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On May 9, 2019, the Federal Register published the USTR’s announcement of duty increases on the third list of Section 301 duties. The increase is from 10% to 25%. The third list of items resulting from the USTR’s investigation of unfair trade practices in technology transfer, intellectual property rights and innovation by China was originally scheduled to increase to 25% on January 1, 2019. In late December the Trump administration delayed the increase as they felt the negotiations with China were proceeding positively. Last week the USTR reported that China rolled back some issues previously agreed to and the decision was made to take the increase now.
With short notice, the USTR announced that all items currently on the third list would be increased as of May 10th at 12:01 AM EDT. For subject goods entered for consumption or withdrawn from the warehouse for consumption on or after May 10th, and exported to the United States on or after May 10, 2019, 12:01 AM EDT.
Other Related Information

Goods shipped by ocean prior to May 10, 2019, must be entered by June 1, 2019, to be eligible to use the 10% duty rate. Three tariff items have been added to Chapter 99 to accommodate the 9903.88.03, 9903.88.04 and 9903.88.09 the three possibilities of tariff treatment outlined by the USTR due to entry date and an export date. No process for exclusion requests on this list of entry numbers has yet to be released. USTR has indicated a process will be available at the end of the month.

The President has indicated on numerous occasions by Tweet that a fourth list which will encompass all other harmonized tariff codes not previously listed; will be released at 25% duties under Sec. 301 if a deal is not settled with China soon.

List 3 products subject to this increase can be found here: https://ustr.gov/sites/default/files/enforcement/301Investigations/Tariff%20List-09.17.18.pdf

Please contact your local Air Tiger Express (USA), Inc. representative if you have any questions.

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