We’re here to assist with any needs you may have regarding Section 232 and 301 tariffs
For the most updated information (updated 02/01/2019) on retaliatory tariffs, please click here.
The Section 232 and Section 301 tariffs don’t have to be daunting. Let our team of attorneys and trade advisors help you navigate the intricacies of these tariffs and help find you viable solutions via mitigation strategies and possible exclusion requests.
- Section 301 – List 1*, 2, and 3** Exclusion Requests
- Global entity-wide mitigation strategies
- Country of Origin Determinations and ruling requests
- Section 301 Tariff Impact Analyses for Imports
- Section 301 Retaliatory Action Impact Analyses for Exports
- Client Advocacy during Public Comment Periods
* To date, Braumiller Law Group has been successful on many exclusion requests from List 1.
** We are excited to inform you that there will be a Section 301 – List 3 exclusion process! President Trump’s signing of the mini-Omnibus bill earlier on February 15, 2019, requires that an exclusion process be put in place for List 3 products by March 17, 2019. The USTR will have the next month or so to consult with the appropriate committees to determine the scope of the process. Please contact us if you would like one of our attorneys to work with you on the List 3 exclusion process!
Stay tuned, stay focused, and above all…..stay compliant. For more information, please contact firstname.lastname@example.org.
Update as of May 11th, 2019:
Trade negotiations with China have been ongoing for the past several months, but no agreement has been reached. On May 9, 2019, the United States Trade Representative (USTR) released a Federal Register Notice (“FR Notice”) confirming that the $200 billion list of goods (“List 3”) would be increased from 10% to 25% as of May 10, 2019, at 12:01 A.M. (84 FR 20459). The USTR pointed to China “retreating from specific commitments” and a “lack of progress” as primary reasons for increasing the tariffs.
In order for goods to be subject to the increase, they must have been both exported to the U.S. and entered for consumption prior to May 10th. After some confusion, CBP provided additional guidance on when the increase would occur. Specifically, it indicated that for goods entered on or after May 10th, but exported from China before that date, importers can pay the 25% tariff and file a post-summary correction (PSC) or wait the standard ten-day entry summary filing period until such guidance is issued.
Although the increase will cause major ramifications for U.S businesses, there will be a process implemented which provides companies a possibility of having their products excluded from the increased tariff. The FR Notice indicates that the USTR will “establish a process by which interested persons may request that particular products . . . be excluded from the additional duties.” Instructions will be released in a separate notice, likely sometime towards the end of May.
Assuming the instructions are similar to those for List 1 and List 2, the USTR will be looking for companies to show:
- the product is only available in China;
- imposition of these additional duties would cause severe economic harm to the requestor or other U.S. interests; and
- the product is strategically important or related to the “Made in China 2025” policy.
Also, on May 9, 2019, the USTR released its fourth Notice of Product Exclusions. To date, Braumiller Law Group has filed over 200 successful exclusion requests for its clients (100+ more are pending in stage 3). Do not miss out on this opportunity to take advantage of the List 3 exclusion process as it could save your company a significant amount of money in the future.
Feb. 24th Update: Trump Announces Delay of Section 301 Tariff Increase
President Donald Trump announced on Twitter that he would be postponing an increase in tariffs against China, and that he plans to meet with Chinese President Xi Jinping to reach a conclusion on a final trade agreement.
The President said that trade negotiations with China have been “very productive,” and subsequently, he would delay the tariffs, which were set to go into effect on March 1st, ahead of a meeting with President Xi at his Mar-A-Lago resort in Florida.
The President also stated on Twitter, “I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues. As a result of these very productive talks, I will be delaying the U.S. increase in tariffs now scheduled for March 1st.”
He went on to say, “Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!”
Foreign Tariff Responses to U.S. Section 232 Steel and Aluminum Tariffs
A number of countries and U.S. trading partners have imposed or announced their intent to impose retaliatory tariffs on specific exports from the United States in response to the United States’ Section 232 tariffs on steel and aluminum imports into the United States.
To assist U.S. companies in identifying those exports impacted by retaliatory tariffs, the Department of Commerce’s Industry & Analysis unit has compiled a Retaliation Product Coverage Matrix and retaliation information.
Retaliation Product Coverage Matrix
This matrix lists the U.S. goods subject to announced foreign retaliatory measures and includes direct links for U.S. businesses to find additional detail regarding the scope of the foreign measures.
On July 1, 2018, Canada began imposing additional tariffs of 10 or 25 percentage points on selected U.S. products.
The United States believes that Canada’s retaliatory tariffs are inconsistent with World Trade Organization (WTO) rules and has opposed them at the WTO.
See Official Notification from Canada: https://www.fin.gc.ca/access/tt-it/cacsap-cmpcaa-1-eng.asp
On April 2, 2018, China began imposing additional tariffs of 15 or 25 percentage points on selected U.S. products.
The United States believes that China’s retaliatory tariffs are inconsistent with WTO rules and has opposed them at the WTO.
See Official Announcement from China (in Mandarin): http://gss.mof.gov.cn/zhengwuxinxi/zhengcefabu/201804/t20180401_2857769.html
China’s notification to the WTO, which includes a list of tariff codes covered by its retaliatory measures in English, is available here.
On June 22, 2018, the European Union (EU) began imposing additional tariffs of 25 percentage points on selected U.S. products.
The EU has also announced that it reserves the right to impose additional retaliatory tariffs in three years, beginning in 2021, or earlier if the EU receives a favorable ruling by the WTO Dispute Settlement Body on their claim that the U.S. tariffs constitute a violation of WTO rules.
The United States believes the EU tariffs are inconsistent with WTO rules and has opposed them at the WTO.
See Official Announcement from the European Union: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018R0724&from=
EU’s notification to the WTO, which includes a list of tariff codes covered by its retaliatory measures, is available here.
India has announced that, effective August 4, 2018, it will impose retaliatory tariffs of an additional 10, 15, 20, 25, or 50 percentage points on selected U.S. products.
India’s notification to the WTO, which includes a list of tariff codes to be covered by its retaliatory measures, is available here.
Japan has notified the WTO of its intent to impose retaliatory tariffs on U.S. products. To date, however, it has not provided specific information regarding the scope or timing of its retaliatory measures.
On June 5, 2018, Mexico began imposing additional tariffs ranging from 7 to 25 percentage points on selected U.S. products.
The United States believes that Mexico’s retaliatory tariffs are inconsistent with WTO rules and has opposed them at the WTO.
See Mexico’s Official Notification (in Spanish): http://www.dof.gob.mx/nota_detalle.php?codigo=5525036&fecha=05/06/2018
On July 6, 2018, Russia announced that they will impose additional tariffs of additional 25, 30, 35, or 40 percentage points on selected U.S. products. The additional tariffs are scheduled to take effect 30 days from the July 6th announcement.
See Russia’s Official Notification (in Russian): http://government.ru/docs/33173/
Russia’s notification to the WTO is available here.
On June 21, 2018, Turkey began imposing additional tariffs on selected U.S. products. On August 15, 2018, Turkey announced an increase in the additional tariff rates, ranging from 4 to 140 percent.
The United States believes that Turkey’s retaliatory tariffs are inconsistent with WTO rules and has opposed them at the WTO.
See Turkey’s Official Notifications (in Turkish): http://www.resmigazete.gov.tr/eskiler/2018/06/20180625M1-30.pdf http://www.resmigazete.gov.tr/main.aspx?home=http://www.resmigazete.gov.tr/eskiler/2018/08/20180815.htm&main=http://www.resmigazete.gov.tr/eskiler/2018/08/20180815.htm
Turkey’s notification to the WTO, which includes a list of tariff codes covered by its retaliatory measures in English, is available here.
To the extent retaliatory measures impact agriculture exports, please consult the U.S. Department of Agriculture’s Global Agriculture Information Network (GAIN) reports at https://gain.fas.usda.gov/Lists/Advanced%20Search/AllItems.aspx.
Norway and Switzerland have also requested consultations with the United States, as part of WTO dispute settlement proceedings, on the U.S. Section 232 tariffs on imports of steel and aluminum into the United States. To date, these countries have not announced their intent to impose retaliatory tariffs.
The information set forth above regarding foreign retaliatory measures, including the Retaliation Product Coverage Matrix, has been provided as a public service for general reference. Every effort has been made to ensure that the information presented is complete and accurate as of September 18, 2018. The information will be updated as new developments occur.
The actual tariff classification and assessment of duties is determined by customs authorities in the relevant foreign country. Moreover, countries may elect to increase tariffs or otherwise amend tariff treatment at any time. For definitive guidance, parties should contact the government customs agency in the appropriate foreign country.