If TCL North America does not get the exclusions it seeks from the 15 percent List 4A Section 301 tariffs it has paid since Sept. 1 on flat-panel TV imports from China, it wants the Trump administration to weigh “reallocating” TVs to List 4B where there’s no current tariff exposure, the vendor said. TCL filed three separate exemption requests Jan. 23 at the Office of the U.S. Trade Representative public docket on tariff schedule subheadings 8528.72.64.30, 8528.72.64.40 and 8528.72.64.60, covering TV imports that vary by screen size. The “sole available source of LCD panels and supporting material components is China,” it said in all three applications.
CBP is awaiting official guidance from the Office of the U.S. Trade Representative for how to handle goods from China that fall under the six extended Section 301 exclusions (see 1912190060), a CBP official said during a Jan. 23 conference call. While USTR extended those exclusions beyond the Dec. 28, 2019, expiration date, the Harmonized Tariff Schedule code for those exclusions, 9903.88.05, became unusable after that date. A Federal Register notice from USTR will be necessary, the official said.
The volume of imports from China fell about 20 percent across the fourth quarter, Flexport executives noted during a webinar Jan. 21 -- which represents both shifting to other categories of goods and re-orienting supply chains. Ryan Petersen, CEO of the freight forwarder, said 64 percent of its clients are paying additional tariffs because of the Trump administration policies.
The International Trade Commission on Jan. 21 issued Revision 1 to the 2020 Harmonized Tariff Schedule. This latest version includes updates needed to implement the latest set of exclusions from list 3 of Section 301 tariffs on products from China (see 2001020035). The new exclusions are listed in new U.S. Note 20(pp) to subchapter III of chapter 99. New subheading 9903.88.37 is created for products entering under the exclusions, and conforming changes are made to other provisions throughout subchapter III. The exclusions take retroactive effect as of Sept. 24, 2018, the date that the list 3 tariffs took effect.
A coalition of U.S. manufacturers seeks the imposition of new antidumping and countervailing duties on vertical shaft engines between 225 cc and 999 cc, and parts thereof, from China, it said in a petition filed with the Commerce Department and the International Trade Commission Jan. 15. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CV duty orders and the assessment of AD and CV duties on importers.
Vizio became the first major TV brand to seek exclusions from the List 4A Section 301 tariffs on finished flat-panel sets from China when it filed Jan. 7 for exemptions on four 10-digit classifications of goods under subheading 8528.72.64 that vary by screen size. Vizio is “working closely” with its third-party original design manufacturers to shift production outside China, the vendor posted in the Office of the U.S. Trade Representative public docket. “Some of the ODMs moved manufacturing to third countries including Mexico in the late Q3 2019 timeframe.” Despite those efforts, it’s “extremely difficult” for Vizio to transfer production to other third countries, including Taiwan, Thailand and Vietnam, “without significant cost” that would “far exceed” the “modest profit margin,” it said. That would “likely” result in a “significant price increase to American consumers,” it said. “Responsibly exploring alternatives to manufacturing, without sacrificing quality, safety, and the low prices that define our brand takes considerable time.” List 4A tariffs took effect Sept. 1 at 15 percent, but are due to be rolled back by half (see 1912310010).
The International Trade Commission is working to add provisions on the Trade Agreement between the United States and Japan to the Harmonized Tariff Schedule of the U.S., James Holbein, director of the ITC’s Office of Tariff Affairs and Trade Agreements, said in an interview Jan. 7. Technical issues with the ITC’s electronic system for updating the tariff schedule had led to the omission of new General Note 36, as well as provisions in chapter 99, from the 2020 Basic Edition of the HTS, Holbein said. The ITC’s information technology office is currently working to fix those issues, he said.
International Trade Today is providing readers with some of the top stories for Dec. 30 - Jan. 3 in case they were missed.
For five months in 2018, it looked like Chinese injection molds were going to cost 25 percent more because of Section 301 tariffs, and the import volume from China in 2018 fell nearly 12 percent, to $385 million. Overall imports of injection molds -- which were valued at $1.8 billion in 2018 -- rose 5 percent that year.
International Trade Today is providing readers with some of the top stories for 2019 in case they were missed.