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U.S. May Modify European Products Subject to 100% Duties Under WTO Beef Hormones Dispute

The Office of the U.S. Trade Representative has announced that the interagency Section 301 Committee is soliciting public comments on the possible modification of the list of European products subject to increased tariffs in connection with World Trade Organization dispute settlement rulings in the U.S.-European Communities beef hormones dispute.

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(In 1998, a WTO dispute settlement panel (DSP) found that the EC's import ban on beef produced with growth hormones was inconsistent with WTO rules. In 1999, the WTO Dispute Settlement Body authorized the U.S. to impose increased tariffs on EU products with a total annual trade value of $116.8 million. Under Section 301, the U.S. imposed a 100% duty rate on certain products from certain EC member countries with a time of entry on or after July 29, 1999.

The EU amended its ban in 2003, claiming that the ban now complied with WTO requirements; however, the U.S. disagreed. On October 16, 2008, the WTO Appellate Body confirmed that the U.S. has a continuing right to impose trade measures until the dispute is resolved. See ITT's Online Archives or 10/27/08 news, 08102745, for BP summary of the AB report.)

Comments due Dec 8th, Modifications Intended to be Announced by Dec 31st

The USTR is requesting comments by 5:00 p.m. on December 8, 2008 and intends to complete the review process and announce any modifications to the existing tariffs by the end of this year.

USTR to Consider Whether to Remove/Add Products, Increase Rates, Etc.

Annex I to USTR's notice contains the list of EC products currently subject to the punitive rates of duty (100% ad valorem) pursuant to the WTO's authorization. Annex II to the notice includes all the products listed in Annex I, as well as products under consideration for the new imposition of increased duties. USTR requests comments with respect to:

(i) whether products listed in Annex I should be removed from the list or remain on the list (and if a product remains on the list, whether the currently applied rate of duty should be increased);

(ii) whether products listed in Annex II should be included on a revised list and be subject to increased rates of duty; and

(iii) the products of which member States of the EC should be subject to increased rates of duty.

USTR states that it is particularly interested in comments regarding the effects on U.S. small- or medium-size businesses or on consumers of imposing higher duties on particular products.

Products Currently Subject to 100% Duties (Annex I)

Annex I is the list of countries/products and Harmonized Tariff Schedule numbers that are currently subject to 100% duties under the EC beef hormones dispute.

In the instances where a 4-digit HTS heading appears in the left column of this list, products classified in any of the 8-digit subheadings appearing in the HTS under those 4-digit headings are subject to increased duties. In all cases, the tariff nomenclatures in the HTS for the headings and subheadings listed below are definitive; the product descriptions in this list are for information purposes only.

Products of Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, or Sweden:

HTSDescription
0201Meat of bovine animals, fresh or chilled
0202Meat of bovine animals, frozen
0203.11.00Pork carcasses and half-carcasses, fresh or chilled
0203.12.10Pork hams and shoulders and cuts thereof, fresh or chilled, with bone in, processed
0203.12.90Pork hams and shoulders and cuts thereof, fresh or chilled, with bone in, not processed
0203.19.20Meat of swine (pork), fresh or chilled, other, processed
0203.19.40Meat of swine (pork), fresh or chilled, other
0203.21.00Pork carcasses and half-carcasses, frozen
0203.22.10Pork hams and shoulders and cuts thereof, frozen, with bone in, processed
0203.22.90Pork hams and shoulders and cuts thereof, frozen, with bone in, not processed
0206.10.00Bovine tongues, fresh or chilled
0206.21.00Bovine tongues, frozen
0206.22.00Bovine livers, frozen
0206.29.00Edible offal of bovine animals, frozen, other than tongues or livers
0406.40.20Roquefort cheese in original loaves
0406.40.40Roquefort cheese, other than in original loaves, not grated or powdered, not processed
0703.10.40Onions, other than onion sets or pearl onions not over 16 mm in diameter, and shallots, fresh or chilled
0709.59.10Truffles, fresh or chilled
0712.90.10Dried carrots, whole, cut, sliced, broken or in powder, but not further prepared
1602.20.20Prepared or preserved liver of goose
1602.20.40Prepared or preserved liver of any animal other than of goose
1905.40.00Rusks, toasted bread and similar toasted products
2009.80.60Juice of any single fruit (including cherries and berries), concentrated or not concentrated, other than citrus, pineapple, tomato, grape, apple, pear, or prune juices
2101.30.00Roasted chicory and other roasted coffee substitutes and extracts, essences and concentrates thereof
2103.30.40Prepared mustard

Products of France, Germany, or Italy:

2002.10.00Tomatoes, whole or in pieces, prepared or preserved otherwise than by vinegar or acetic acid

Products of France or Germany:

0504.00.00Guts, bladders, and stomachs of animals (other than fish), whole and pieces thereof, fresh, chilled, frozen, salted, in brine, dried or smoked.
2104.10.00Soups and broths and preparations therefor
5510.11.00Yarn (other than sewing thread) containing 85% or more by weight of artificial staple fibers, singles, not put up for retail sale

Products of France:

0210.11.00Hams, shoulders and cuts thereof with bone in, salted, in brine, dried or smoked
1505.00.90Fatty substances derived from wool grease (including lanolin)
1806.31.00Chocolate and other cocoa preparations, in blocks, slabs or bars, filled, weighing not more than 2 kg
2007.99.05Lingonberry and raspberry jams obtained by cooking
3506.10.50Products suitable for use as glues or adhesives, put up for retail sale, not exceeding 1 kg, including fish glue, but not other animal glue

All Products Under Consideration for Imposition of Punitive Duties (Annex II)

Annex II includes the products listed in Annex I (which are currently subject to 100% duties) and the products under consideration for the new imposition of increased duties. In particular, increased tariffs may be applied to articles that are (i) classified in the numerical headings and subheadings of the HTS listed below and (ii) products of one or more of the EC member States.

In the instances where a 4-digit HTS heading appears in the left column of this list, products classified in any of the 8-digit subheadings appearing in the HTS under those 4-digit headings will be subject to increased duties. In all cases, the tariff nomenclatures in the HTS for the headings and subheadings listed below are definitive; the product descriptions in this list are for information purposes only.

HTSDescription
0201Meat of bovine animals, fresh or chilled
0202Meat of bovine animals, frozen
0203Meat of swine (pork), fresh, chilled or frozen
0206Edible offal of bovine animals, swine, sheep, goats, horses, or mules, fresh, chilled or frozen
0207Meat and edible offal of poultry (chickens, ducks, geese, turkeys, and guineas), fresh, chilled or frozen
0210.11.00Hams, shoulders and cuts thereof with bone in, salted, in brine, dried or smoked
0210.12.00Bellies (streaky) and cuts thereof of swine, salted, in brine, dried or smoked
0210.20.00Meat of bovine animals, salted, in brine, dried or smoked
0210.99.20Meat and edible offal of poultry (chickens, ducks, geese, turkeys and guineas), salted, in brine, dried or smoked; flour and meal of these animals
0210.99.90Meat and edible offal not nesoi1, salted, in brine, dried or smoked; flour and meal thereof
0406.40.20Roquefort cheese in original loaves
0406.40.40Roquefort cheese, other than in original loaves, not grated or powdered, not processed
0504.00.00Guts, bladders and stomachs of animals (other than fish), whole and pieces thereof, fresh, chilled, frozen, salted, in brine, dried or smoked
0603.90.00Cut flowers and flower buds, suitable for bouquets or ornamental purposes, dried, dyed, bleached, impregnated or otherwise prepared
0604.91.00Foliage, branches and other parts of plants without flowers or flower buds, and grasses, suitable for bouquets or ornamental purposes, fresh
0604.99.30Foliage, branches, parts of plants without flowers or buds, and grasses, suitable for bouquets or ornamental purposes, dried or bleached
0702.00.20Tomatoes, fresh or chilled, entered during March 1 to July 14, inclusive, or during September 1 to November 14, inclusive, in any year
0702.00.40Tomatoes, fresh or chilled, entered from July 15 through August 31 in any year
0702.00.60Tomatoes, fresh or chilled, entered from November 15 to the last day of February, inclusive, of the following year
0703.10.40Onions, other than onion sets or pearl onions not over 16 mm in diameter, and shallots, fresh or chilled
0709.59.10Truffles, fresh or chilled
0712.90.10Dried carrots, whole, cut, sliced, broken or in powder, but not further prepared
0712.90.74Dried tomatoes, in powder
0712.90.78Dried tomatoes, whole, cut, sliced or broken, but not further prepared
0802.40.00Chestnuts, fresh or dried, whether or not shelled or peeled
0904.20.20Paprika, dried or crushed or ground
1004.00.00Oats
1104.12.00Rolled or flaked grains of oats
1104.22.00Grains of oats, hulled, pearled, clipped, sliced, kibbled or otherwise worked, but not rolled or flaked
1505.00.90Fatty substances derived from wool grease (including lanolin)
1601Sausages and similar products of meat, meat offal or blood; food preparations based on these products
1602.10.00Homogenized preparations of meat, meat offal or blood, other than sausages and similar products
1602.20.20Prepared or preserved liver of goose
1602.20.40Prepared or preserved liver of any animal other than of goose
1602.31.00Prepared or preserved meat or meat offal of turkeys, other than sausages and similar products
1602.32.00Prepared or preserved meat or meat offal of chickens, other than sausages and similar products
1602.39.00Prepared or preserved meat or meat offal of ducks, geese or guineas, other than sausages and similar products
1602.41.10Prepared or preserved pork ham and cuts thereof, containing cereals or vegetables
1602.41.20Pork hams and cuts thereof, not containing cereals or vegetables, boned and cooked and packed in airtight containers
1602.41.90Prepared or preserved pork hams and cuts thereof, not containing cereals or vegetables, other than boned and cooked and packed in airtight containers
1602.42.20Pork shoulders and cuts thereof, boned and cooked and packed in airtight containers
1602.42.40Prepared or preserved pork shoulders and cuts thereof, other than boned and cooked and packed in airtight containers
1602.49.10Prepared or preserved pork offal, including mixtures
1602.49.20Pork other than hams, shoulders or cuts thereof, not containing cereals or vegetables, boned and cooked and packed in airtight containers
1602.49.40Prepared or preserved pork, not containing cereals or vegetables, nesoi1
1602.49.60Prepared or preserved pork mixed with beef
1602.49.90Prepared or preserved pork, nesoi1
1602.50.05Prepared or preserved offal of bovine animals
1602.50.09Prepared or preserved meat of bovine animals, cured or pickled, not containing cereals or vegetables
1602.50.10Corned beef in airtight containers
1602.50.20Prepared or preserved beef in airtight containers, other than corned beef, not containing cereals or vegetables, not cured or pickled
1602.50.60Prepared or preserved meat of bovine animals, not containing cereals or vegetables, not in airtight containers
1602.50.90Prepared or preserved meat of bovine animals, containing cereals or vegetables
1704.10.00Chewing gum, whether or not sugar-coated
1704.90.25Sugar confectionary cough drops
1806.31.00Chocolate and other cocoa preparations, in blocks, slabs or bars, filled, weighing not more than 2 kg
1905.40.00Rusks, toasted bread and similar toasted products
2002.10.00Tomatoes, whole or in pieces, prepared or preserved otherwise than by vinegar or acetic acid
2002.90.40Tomatoes, in powder
2002.90.80Tomatoes, other than whole or in pieces and other than in powder (including paste and puree), prepared or preserved otherwise than by vinegar or acetic acid
2007.99.05Lingonberry and raspberry jams obtained by cooking
2008.30.42Satsumas, prepared or preserved, in airtight containers, aggregate quantity not over 40,000 metric tons/calendar year
2008.30.46Satsumas, prepared or preserved, in airtight containers, aggregate quantity over 40,000 metric tons/calendar year
2008.40.00Pears, otherwise prepared or preserved, nesoi1
2008.70.20Peaches (excluding nectarines), otherwise prepared or preserved, nesoi1
2009.61.00Grape juice (including grape must), of a Brix value not exceeding 30
2009.69.00Grape juice (including grape must), of a Brix value exceeding 30
2009.80.60Juice of any single fruit (including cherries and berries), concentrated or not concentrated, other than citrus, pineapple, tomato, grape, apple, pear or prune juices
2009.90.40Mixtures of fruit juices, or mixtures of vegetable and fruit juices
2101.30.00Roasted chicory and other roasted coffee substitutes and extracts, essences and concentrates thereof
2103.30.40Prepared mustard
2104.10.00Soups and broths and preparations therefor
2201.10.00Mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavored
2309.90.10Mixed feed or mixed feed ingredients of a kind used in animal feeding
3506.10.50Products suitable for use as glues or adhesives, put up for retail sale, not exceeding 1 kg, including fish glue but not other animal glue
5504.10.00Viscose rayon staple fibers, not carded, combed or otherwise processed for spinning
5510.11.00Single yarn (other than sewing thread) containing 85% or more by weight of artificial staple fibers, not put up for retail sale
8510.20.10Hair clippers, with self-contained electric motor, to be used for agricultural or horticultural purposes
8510.20.90Hair clippers, with self-contained electric motor, other than those to be used for agricultural or horticultural purposes
8711.20.00Motorcycles (incl. mopeds) and cycles, fitted with reciprocating internal-combustion piston engine with cylinder capacity of over 50 cc but not over 250 cc
8711.30.00Motorcycles (incl. mopeds) and cycles, fitted with reciprocating internal-combustion piston engine with cylinder capacity of over 250 cc but not over 500 cc

1not elsewhere specified or included

(See ITT's Online Archives or 04/02/08 news, 08040215, for BP summary of a March 2008 WTO DSP "mixed ruling" in the subject dispute, with links to previous notices.)

Gwendolyn Diggs (comment filing questions)(202) 395-5830
Roger Wentzel (hormone dispute questions)(202) 395-6127
William Busis (Section 301 questions)(202) 395-3150

USTR notice (as published on the USTR Web site) available at http://edocket.access.gpo.gov/2008/pdf/E8-26545.pdf

http://www.ustr.gov/assets/Document_Library/Federal_Register_Notices/2008/October/asset_upload_file552_15198.pdf

USTR press release (dated 10/31/08) available at http://www.ustr.gov/Document_Library/Press_Releases/2008/October/USTR_Seeks_Public_Comments_on_Possible_Changes_to_Product_List_in_EU_Beef_Hormones_Dispute_printer.html