The Office of the U.S. Trade Representative issued a new set of product exclusions from the 25 percent Section 301 tariffs on goods from China. The exclusions include products from the third list of Section 301 goods. The new exclusions "are reflected in 9 ten-digit HTSUS subheadings and 35 specially prepared product descriptions, which cover 75 separate exclusion requests," according to the notice.
The International Trade Commission issued Revision 19 to the 2019 Harmonized Tariff Schedule. The latest update is to add the latest round of exemptions from tranche 3 Section 301 tariffs on products from China, published by the Office of the U.S. Trade Representative on Nov. 29 (see 1911260056). The exclusions are described in new U.S. Note 20(nn) to subchapter III of chapter 99, and are classifiable in new subheading 9903.88.35. The ITC also made conforming changes to other tariff schedule provisions on Section 301 tariffs. The exclusions take effect retroactive to Sept. 24, 2018, when the third tranche of tariffs first came into force.
International Trade Today is providing readers with some of the top stories for Nov. 25-29 in case they were missed.
Jasco Products didn’t conceal its anger in seeking exclusions from the 15 percent List 4A Section 301 tariffs it pays on the plastic AC outlet safety covers and seven other classifications of tech accessories it imports from China. Jasco is “being forced by its own federal government to undergo a worldwide scouting expedition” for alternative sourcing, “and is actively evaluating several dozen suppliers outside of China,” the supplier said in each of its eight exclusion requests posted Dec. 2 in the Office of the U.S. Trade Representative’s public docket. Finding alternative sourcing “will take years and tens of millions of dollars along with extensive business disruption due to the time and resource commitment involved,” Jasco said. “It takes time to identify potential suppliers and perform audits to ensure that the factories meet Jasco’s rigorous standards for quality, safety, labor conditions, and environmental protections.”
U.S. importers sourcing smart speakers, Bluetooth devices, smartwatches and fitness trackers from China filed the most List 4A Section 301 tariff exclusion requests of any consumer tech category through Nov. 27 since the Office of U.S. Trade Representative began accepting the requests Oct. 31, the public docket shows. The broad assortment of goods imported under the 8517.62.0090 of the Harmonized Tariff Schedule of the U.S. had the widest tariff exposure of any consumer tech product on List 4A, according to an International Trade Today analysis of Census Bureau statistics accessed through the International Trade Commission’s DataWeb tool.
When tariffs on their entire product line rose to 25 percent, small bike companies were faced with difficult decisions on raising prices and reducing staff. For Mehdi Farsi, co-founder of State Bicycle Co., a 10-year-old firm in Arizona, the financial burden meant he ended free shipping for online customers, then raised the price of the second-highest seller from $449 to $459. Shipping usually cost the company between $25 and $50, depending on the distance. He also didn't replace one person who left the company, and laid off one worker. Currently, including the owners, there are 15 workers, a couple of whom work only part time.
The Office of the U.S Trade Representative issued some new product exclusions from Section 301 tariffs on the third list of products from China, according to a pre-publication copy of a notice posted to the agency’s website Nov. 26. The product exclusions apply retroactively to Sept. 24, 2018, the date the tariffs on the third list took effect, and will remain in effect until Aug. 7, 2020. New subheading 9903.88.35 will be used for these products.
The Office of the U.S. Trade Representative issued a new set of product exclusions from the 25 percent Section 301 tariffs on goods from China. The exclusions include products from the third list of Section 301 goods. The new exclusions "are reflected in 32 specially prepared product descriptions, which cover 39 separate exclusion requests," according to the notice.
IRobot started making some models of its Roomba vacuum line in Malaysia as part of an effort to shift away from China, the company said in a Nov. 21 news release. “Establishing manufacturing operations in Malaysia is a fundamental component in our initiative to diversify iRobot's manufacturing and supply chain capabilities, while also mitigating our exposure to current and prospective tariffs on products that are imported from China," said Colin Angle, CEO at iRobot. The company previously announced the plans to begin a production line in Malaysia (see 1910230027).
The Commerce Department issued Federal Register notices on its recently initiated antidumping duty investigations on forged steel fittings from India (A-533-891) and South Korea (A-580-904), and its recently initiated countervailing duty investigation on forged steel fittings from India (C-533-892).