Updates on China Tariffs

Watch a replay of our WQA Webinar for the latest on U.S.-China tariffs

April 2020 Update on Possible Extension of exclusions granted May 14, 2019

The U.S. Trade Representative has decided to consider a possible extension for up to 12 months of particular exclusions granted on May 14, 2019, including the exclusions granted for HTS Code 8421.21.0000 - Water Filtering or Purifying Machinery And Apparatus. These exclusions were for the following classes of products:

(1) Apparatus, including pitchers, bottles, and units designed for incorporation into refrigerators, appliances or sink faucets, the foregoing fitted with filters for filtering or purifying water (described in statistical reporting number 8421.21.0000)

(2) Filtering apparatus, fitted with pumps, designed for use in pools, spas or similar contained bodies of water (described in statistical reporting number 8421.21.0000)

(3) Filtering or purifying machinery or apparatus of a kind used for waste-water treatment (described in statistical reporting number 8421.21.0000)

(4) Submersible machinery for filtering water, designed for use in pools, basins, aquariums, spas or similar contained bodies of water (described in statistical reporting number 8421.21.0000)

(5) Water distillation machinery and apparatus not covered by heading 8419 (described in statistical reporting number 8421.21.0000)

If you have received tariff relief using one of the above exclusions, it would be beneficial to submit a request to extend that exclusion. The due date for submissions is 11:59PM on Sunday, April 12. You may submit a request for extension even if your initial request for exclusion was denied, so long as you are requesting an extension for one of the five classes of products listed above.

Unlike the initial exclusion process, where more than 10,000 comments were submitted, thus far there have only been 10 comments submitted requesting an extension, giving WQA members a chance to elevate the importance of the exclusion for water filtration products.

To submit a comment, companies must submit two forms: Form A (covering non-business confidential information) and Form B (covering business confidential information) to the USTR Docket covering this set of tariff extension requests (which can be found here). Additional information on how to submit a comment to request an extension of the exclusion for HTS Code 8421.21.0000 is included below, which has been copied from the federal register notice. That notice can be found here

September 2019 Update for Goods on Lists One, Two & Three

On Tuesday, September 3, 2019, the Office of US Trade Representative (USTR) filed a notice in the federal register that the administration plans to raise tariffs on Lists 1, 2, and 3 from 25% to 30%. There is a mandatory public comment period, which is open until September 20, 2019. The proposed increase was to be effective on October 1, 2019, but on Wednesday, September 11, 2019, the president announced that the increases would be delayed two weeks, to October 15, 2019. When effective, all affected products that haven’t received an exclusion from Lists 1, 2, and 3 will be subject to a 5% tariff increase.

Submit Comments – Deadline September 20, 2019

Note: Please let WQA know you have submitted a comment. Comments of support can be added to your original comment.

Federal Register Notice

Search Tool

The US Trade Representative Office has created a search tool to determine if a product is subject to a proposed or ongoing Section 301 Tariff Action (Lists 1, 2, 3, & 4), by searching for the product’s Harmonized Tariff Schedule (HTS) code. Follow the link below and enter the 8-digit HTS Subheading into the search field and press SEARCH.

https://ustr.gov/issue-areas/enforcement/section-301-investigations/search

More information on HTS Subheadings

https://www.usitc.gov/tariff_affairs/about_hts.htm

Summary

Official Section 301 Exclusion Process Website

List 1 ($34 Billion)

25% duty

Note: List One includes, but is not limited to, 8421.21.00 – Machinery and apparatus for filtering and purifying water and 8421.99.00 – Parts for filtering or purifying machinery or apparatus for liquids or gases

Review of exclusion requests is ongoing (Review Exclusion Process & Already Granted Exclusions for List 1)

Request for comments concerning 5% increase on duty (from 25% to 30%) for goods on List 1, 2, & 3

Submit Comments – Deadline September 20, 2019

List 2 ($16 Billion)

25% duty

Note: List Two includes, but is not limited to, 3914.00.60 – Ion-exchangers based on polymers of headings 3901 to 3913, in primary forms, nesoi

Review of exclusion requests is ongoing (Review Exclusion Process & Already Granted Exclusions for List 2)

Request for comments concerning 5% increase on duty (from 25% to 30%) for goods on List 1, 2, & 3

Submit Comments – Deadline September 20, 2019

List 3 ($200 Billion)

25% duty

Note: List Three includes, but is not limited to, 3802.10.00 – Activated carbon and 3802.90.20 – Activated clays and activated earths

Exclusion request submission is open, deadline is September 30, 2019 (Review Exclusion Process, How to submit a request & Already Granted Exclusions for List 3)

Request for comments concerning 5% increase on duty (from 25% to 30%) for goods on List 1, 2, & 3

Submit Comments – Deadline September 20, 2019

List 4 ($300 Billion)

10% duty announced on August 1, 2019, increased to 15% on August, 30 2019 (Read Aug. 30 Notice)

List 4A Effective September 1, 2019

List 4B Effective December 15, 2019

Exclusion Process TBD

Additional information on List 4

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On August 14, 2017, President Trump instructed the Office of US Trade Representatives (USTR) to investigate the actions of the Government of China under section 301 of the Trade Act of 1974. The USTR prepared a comprehensive report on the acts, policies, and practices under investigation. This report was posted on March 22, 2018. In the proposed recommendations the USTR is considering imposing tariffs on certain products imported from China. After the US announced its list of proposed tariffs on China goods, China announced a list of goods it is proposing to increase tariffs on (see “China Announcement of Additional Tariffs” document under resources).

Call to Action

Submit written comments for goods on List Three. The deadline is Sept. 6, 2019. Go to: www.regulations.gov, via docket USTR-2018-0026. We recommend sending a copy of your submitted comments to your congress members to educate them on the impacts these tariffs will have on public health and businesses.

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Resources:

Instructions for Exclusion Process from the Office of the U.S. Trade Representatives (Download PDF)
Product Exclusion Form (Download PDF)
Exclusion Process Handout (Download PDF)
Press Release from USTR on Exclusion Process for Products on List One (Go to Webpage)
WQA Letter Submitted for Section 301 Committee Public Hearing on List One (Download PDF)
WQA Letter Submitted for Section 301 Committee Public Hearing on List Two (Download PDF)
WQA Letter to Federal House Ways and Means Committee on Counterfeits and Tariffs (Download PDF)
China Announcement of Additional Tariffs (Download PDF)
US Exports covered by Chinese Tariffs List One *unofficial version (Download PDF)
US Exports Covered by Chinese Tariffs List Two *unofficial version (Download PDF)
US Exports Covered by Chinese Tariffs List Three *unofficial version(Download PDF)
Press Release from USTR on Section 301 Investigation 6/29/2018 (Go to Webpage)
Press Release from USTR on Tariffs on Chinese Products 6/29/2018 (Go to Webpage)
Wall Street Journal Article of Tariff Exclusion Process of Steel and Aluminum (Download PDF)