EU Increases Duties on Some U.S. Goods to Retaliate for CDSOA Funds
The European Union slapped on additional tariffs on U.S. goods in retaliation for noncompliance with a World Trade Organization ruling against the Continued Dumping and Subsidy Offset Act (CDSOA, aka the Byrd Amendment). Effective May 1, the EU is increasing the additional tariff from 6 to 26 percent on metal eyewear frames, trucks with cranes, and frozen sweetcorn, and is also imposing the 26 percent additional tariff on women’s denim trousers.
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The EU is increasing the tariffs to keep up with disbursements of CDSOA funds in fiscal year 2012. Each year, in response to the amount of disbursements by the U.S., the EU adds to or removes from a list of goods subject to the additional duties, or increases or decreases the additional tariff rate. The list of goods subject to the retaliatory tariffs started at 18 subheadings at 15 percent on imposition in 2005, and reached a maximum of 58 subheadings in 2007 before falling to only three after the EU removed all footwear and apparel subheadings in 2011. In fiscal year 2011, the U.S. only disbursed $3.24 million in CDSOA funds, so the EU accordingly reduced the additional tariff to 6% for 2012. Although CDSOA disbursements shot up to $60.77 million in fiscal year 2012, the EU has now exhausted the list of goods that can be added to the goods subject to retaliatory duties, so the only remaining mechanism is to increase the additional tariff.
Goods from the U.S. entering the EU under the following EU Combined Nomenclature subheadings are subject to the 2013 retaliatory tariff:
| Subheading | Description | Duty1 | Old2 | New3 |
|---|---|---|---|---|
| 0710.40.10 | Vegetables (uncooked or cooked by steaming or boiling in water), frozen: Sweetcorn | 5.1%* | 11.1* | 31.1%* |
| 6204.62.31 | Womens or girls suits, ensembles, jackets, blazers, dressers, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Trousers, bib and brace overalls, breeches and shorts: Of cotton: Trousers and breeches: Other: Of denim | 12% | 18% | 38% |
| 8705.10.00 | Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete-mixer lorries, road sweeper lorries, spraying lorries, mobile workshops, mobile radiological units): Crane lorries | 3.7% | 9.7% | 29.7% |
| 9003.19.30 | Frames and mountings for spectacles, goggles or the like, and parts thereof: Frames and mountings: Of other materials | 2.2% | 8.2% | 28.2% |
*Also subject to a duty of €9.40 per 100 kg net
1Normal duty rate for entries under this subheading into the EU.
2Duty rate including additional retaliatory tariffs on U.S. goods, in effect from May 1, 2012 - April 30, 2013
3New duty rate for U.S. goods after increase in retaliatory tariff, in effect beginning May 1, 2013
Email ITTNews@warren-news.com for a copy of the EU regulation implementing the increase in additional duties.