Immediately after the United States Trade Representative (USTR) proposed an additional duty of 25% on over 1300 categories of products from China, China’s Ministry of Commerce (MOFCOM) responded with its own proposed list of 106 US product types that will be subject to additional tariffs of 25%. The USTR’s announcement followed the March 22, 2018 publication of the USTR’s “Section 301” investigation report. MOFCOM’s response to the US Section 301 tariffs was as swift as MOFCOM’s recent riposte to US “Section 232” import remedies against Chinese steel and aluminum products, involving MOFCOM’s suspension of existing duty concessions on 128 US agricultural and other product types.
Below is a brief overview of the latest moves by the US and China. When the US Section 301 tariffs and China’s retaliatory tariffs will actually go into effect is uncertain. In contrast, the US Section 232 remedies took effect on March 23, 2018, followed on April 2, 2018, by entry into force of China’s retaliatory action (notice in Chinese).
US Action
The USTR’s March 22, 2018 report on the Section 301 Investigation of China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation details the USTR’s findings that certain acts, policies, and practices of China are unreasonable or discriminatory and burden or restrict US commerce. In an April 3, 2018 Notice, the USTR proposed that a broad range of products imported from China be subject to additional tariffs.
These products, proposed to be subject to an additional 25% duty, are defined by 1333 eight-digit subheadings of the Harmonized Tariff Schedule of the US (HTSUS). The full list is provided in the Annex to the USTR’s Notice of this proposed tariff action. These HTSUS subheadings cover a wide variety of products such as pharmaceuticals, chemicals, articles of rubber, articles of iron, steel, and aluminum, nuclear reactor and related products, electrical machinery, televisions and monitors, information and communication technology, motor vehicles, industrial vehicles, aerospace, ships and boats, various measuring and checking devices, clocks and watches, military items, and furniture products, among others.
The USTR’s Notice announced that the proposed tariff action is open to public comment and a public hearing. Requests to appear at the hearing, with summaries of expected testimony, are due by April 23, 2018; additional written comments are due by May 11, 2018; the hearing itself will occur on May 15, 2018; and post-hearing rebuttal comments are due by May 22, 2018.
Additionally, on March 23, 2018, the USTR initiated a World Trade Organization (WTO) dispute against China regarding certain aspects of China’s regulations. Because the USTR is addressing these through the WTO, they were not taken into account in the development of the proposed tariff and list of product types.
China Action
On April 4, 2018, China’s MOFCOM announced plans to impose an additional 25% tariff on 106 products imported from the US. The retaliatory move comes after the USTR’s April 3rd proposal of an additional 25% tariff on imports of over 1,300 Chinese product types (as noted above) under Section 301 of the Trade Act of 1974. The US products targeted by China’s announcement include soybeans, motor vehicles, aircraft, beef, chemicals, cigarettes, corn products, wheat, orange juice, cotton, and whisky. These products constitute up to $50 billion of China’s imports from the US.
China alleges that the proposed US Section 301 measures violate WTO rules, severely infringe China's rights under the WTO, and threaten China's economic interests and safety. The final tariff measures and implementation date will be announced by MOFCOM at a later, undefined date. We have provided an unofficial translation of China MOFCOM’s proposed list of targeted US products, below.
BCLP Assistance in Contesting the US/China Actions
BCLP will be assisting clients in preparing written comments and briefs for submission to the USTR contesting the inclusion of specific products or product types. We are also available to assist clients in preparing for the public hearing scheduled for May 15th. With respect to China’s imposition of retaliatory tariffs, our Shanghai office is available to assess the impact on an industry- or product-specific basis.
Proposed Imports from the United States Subject to Additional 25% Tariff
[Unofficial Translation of the China MOFCOM List]
|
|
Tariff Code
|
Product
|
|
1
|
12019010
|
Yellow soybeans
|
|
2
|
12019020
|
Black soybeans
|
|
3
|
10059000
|
Other corns
|
|
4
|
11022000
|
Corn flour
|
|
5
|
52010000
|
Uncombed cotton
|
|
6
|
14042000
|
Cotton linters
|
|
7
|
10079000
|
Other grain sorghum
|
|
8
|
23033000
|
Brewing or distilling dregs and wastes
|
|
9
|
10011900
|
Other durum wheat
|
|
10
|
10019900
|
Other wheat and maslin
|
|
11
|
02011000
|
Fresh and chilled carcasses and half-carcasses beef
|
|
12
|
02012000
|
Fresh and chilled bone-in beef
|
|
13
|
02013000
|
Fresh and chilled deboned beef
|
|
14
|
02021000
|
Frozen carcasses and half-carcasses beef
|
|
15
|
02022000
|
Frozen bone-in beef
|
|
16
|
02023000
|
Frozen deboned beef
|
|
17
|
02062900
|
Other frozen bovine offal
|
|
18
|
20089300
|
Cranberries prepared or preserved by other methods
|
|
19
|
20091100
|
Frozen orange juices
|
|
20
|
20091200
|
Non-frozen orange juice with a Brix value not exceeding 20
|
|
21
|
22083000
|
Whiskies
|
|
22
|
24011010
|
Unstemmed flue-cured tobacco
|
|
23
|
24011090
|
Other unstemmed tobacco
|
|
24
|
24012010
|
Partly or wholly stemmed flue-cured tobacco
|
|
25
|
24012090
|
Other partly or wholly stemmed tobacco
|
|
26
|
24013000
|
Tobacco refuse
|
|
27
|
24021000
|
Cigars produced with tobacco
|
|
28
|
24022000
|
Cigarettes produced with tobacco
|
|
29
|
24029000
|
Cigars and cigarettes produced with tobacco substitutes
|
|
30
|
24031100
|
Water pipe tobacco described in the subheading notes of this Chapter
|
|
31
|
24031900
|
Other smoking tobacco
|
|
32
|
24039100
|
“Homogenized” or “reconstituted” tobacco
|
|
33
|
24039900
|
Other tobacco and tobacco substitute products; tobacco extracts and essences
|
|
34
|
87032362
|
Off-road vehicles with a cylinder capacity exceeding 2.5L but not exceeding 3L
|
|
35
|
87034052
|
Other vehicles that are equipped with spark-ignition reciprocating piston internal combustion engine and a drive motor, and off-road vehicles (4WD) that can be charged by plugging in an external power source and with a cylinder capacity (displacement) exceeding 2500 ml but not exceeding 3000 ml
|
|
36
|
87032342
|
Off-road vehicles with a cylinder capacity exceeding 1.5L but not exceeding 2L
|
|
37
|
87034032
|
Other vehicles that are equipped with spark-ignition reciprocating piston internal combustion engine and a drive motor, and off-road vehicles (4WD) that can be charged by plugging in an external power source and with a cylinder capacity (displacement) exceeding 1000 ml but not exceeding 1500 ml
|
|
38
|
87032343
|
Station wagons (9 seats or less) with a cylinder capacity exceeding 1.5L but not exceeding 2L
|
|
39
|
87034033
|
Other vehicles that are equipped with spark-ignition reciprocating piston internal combustion engine and a drive motor, and station wagons (9 seats or less) that can be charged by plugging in an external power source and with a cylinder capacity (displacement) exceeding 1000 ml but not exceeding 1500 ml
|
|
40
|
87032413
|
Station wagons (9 seats or less ) with a cylinder capacity exceeding 3L but not exceeding 4L
|
|
41
|
87034063
|
Other vehicles that are equipped with spark-ignition reciprocating piston internal combustion engine and a drive motor, and station wagons (9 seats or less) that can be charged by plugging in an external power source and with a cylinder capacity (displacement) exceeding 3000 ml but not exceeding 4000 ml
|
|
42
|
87032352
|
Off-road vehicles with a cylinder capacity exceeding 2L but not exceeding 2.5L
|
|
43
|
87034042
|
Other vehicles that are equipped with spark-ignition reciprocating piston internal combustion engine and a drive motor, and off-road vehicles (4WD) that can be charged by plugging in an external power source and with a cylinder capacity (displacement) exceeding 2000 ml but not exceeding 2500 ml
|
|
44
|
87032353
|
Station wagons (9 seats or less) with a cylinder capacity exceeding 2L but not exceeding 2.5L
|
|
45
|
87034043
|
Other vehicles that are equipped with spark-ignition reciprocating piston internal combustion engine and a drive motor, and station wagons (9 seats or less) that can be charged by plugging in an external power source and with a cylinder capacity (displacement) exceeding 2000 ml but not exceeding 2500 ml
|
|
46
|
87032412
|
Off-road vehicles with a cylinder capacity exceeding 3L but not exceeding 4L
|
|
47
|
87034062
|
Other vehicles that are equipped with spark-ignition reciprocating piston internal combustion engine and a drive motor, and off-road vehicles (4WD) that can be charged by plugging in an external power source and with a cylinder capacity (displacement) exceeding 3000 ml but not exceeding 4000 ml
|
|
48
|
87033312
|
Diesel type off-road vehicles with a cylinder capacity exceeding 2.5L but not exceeding 3L
|
|
49
|
87035052
|
Other vehicles that are equipped with compression ignition type reciprocating piston internal combustion engine and a drive motor, and off-road vehicles (4WD) that can be charged by plugging in an external power source and with a cylinder capacity (displacement) exceeding 2500 ml but not exceeding 3000 ml
|
|
50
|
87032363
|
Station wagons (9 seats or less) with a cylinder capacity exceeding 2.5L but not exceeding 3L
|
|
51
|
87034053
|
Other vehicles that are equipped with spark-ignition reciprocating piston internal combustion engine and a drive motor, and station wagons (9 seats or less) that can be charged by plugging in an external power source and with a cylinder capacity (displacement) exceeding 2500 ml but not exceeding 3000 ml
|
|
52
|
87032422
|
Off-road vehicles with a cylinder capacity exceeding 4L
|
|
53
|
87034072
|
Other vehicles that are equipped with spark-ignition reciprocating piston internal combustion engine and a drive motor, and off-road vehicles (4WD) that can be charged by plugging in an external power source and with a cylinder capacity (displacement) exceeding 4000 ml
|
|
54
|
87034090
|
Other vehicles that are equipped with compression ignition type reciprocating piston internal combustion engine and a drive motor, and other vehicles that can be charged by plugging in an external power source
|
|
55
|
87035090
|
Other vehicles that are equipped with compression ignition type piston internal combustion engine (diesel or semi-diesel engine) and a drive motor, and other vehicles that can be charged by plugging in an external power source
|
|
56
|
87036000
|
Other vehicles that are equipped with spark-ignition reciprocating piston internal combustion engine and a drive motor and can be charged by plugging in an external power source
|
|
57
|
87037000
|
Other vehicles that are equipped with compression ignition type reciprocating piston internal combustion engine and a drive motor and can be charged by plugging in an external power source
|
|
58
|
87038000
|
Other vehicles equipped only with drive motors
|
|
59
|
87039000
|
Other vehicles
|
|
60
|
87043100
|
Other gasoline type truck not exceeding 5 tons
|
|
61
|
87084099
|
Gear boxes and parts for vehicles not specified in the PRC Tariff Schedule
|
|
62
|
27111200
|
Liquid Propane
|
|
63
|
39074000
|
Polycarbonates in primary forms
|
|
64
|
38151200
|
Carrier catalysts with precious metal or its compounds as the active substance
|
|
65
|
38220010
|
Diagnostic or laboratory reagents on a backing, except for goods classified under 32023206
|
|
66
|
38249999
|
Other chemical products and preparations for the chemical industry and related industries that are not elsewhere specified
|
|
67
|
38248700
|
Products listed in the subheading explanatory note 3 of this Chapter containing perfluorooctane sulfonic acid and its salts, perfluorooctyl sulfonamide or perfluorooctane sulfonyl chloride
|
|
68
|
38248800
|
Products listed in subheading explanatory note 3 of this Chapter containing four, five, six, seven or octabromodiphenyl ethers
|
|
69
|
38248500
|
Products listed in subheading explanatory note 3 of this Chapter Containing 1,2,3,4,5,6-HCH (6,6,6) (ISO), including lindane (ISO, INN)
|
|
70
|
38249100
|
Mixtures and products that are mainly composed of dimethyl (5-ethyl-2-methyl-2oxo-1,3,2-dioxaphosphorin-5-yl)methylphosphonate and double [(5-ethyl- 2-methyl-2oxo-1,3,2-dioxaphosphorin-5-yl)methyl]methylphosphonate (FRC-1)
|
|
71
|
38248600
|
Products listed in the explanatory note 3 of this Chapter containing PeCB (ISO) or Hexachlorobenzene (ISO)
|
|
72
|
38248400
|
Products listed in the explanatory note 3 of this Chapter containing aldrin (ISO), toxaphene (ISO), chlordane (ISO), chlordecone (ISO), DDT (ISO) [Diptrix (INN), 1,1,1-trichloro-2,2 - Bis(4-chlorophenyl)ethane], Dieldrin (ISO, INN), Endosulfan (ISO), Endrin (ISO), Heptachlor (ISO), or Mirex (ISO)
|
|
73
|
38151900
|
Other carrier catalysts
|
|
74
|
39079999
|
Other polyester
|
|
75
|
38159000
|
Other reaction initiators and accelerators not specified in the PRC Tariff Schedule
|
|
76
|
39011000
|
Polyethylene in primary forms with a gravity proportion of less than 0.94
|
|
77
|
29261000
|
Acrylonitrile
|
|
78
|
34039900
|
Lubricants (without oil or oil extracted from bituminous minerals)
|
|
79
|
38220090
|
Diagnostic or laboratory reagents, whether attached to a backing or not, except for goods classified under 32023206
|
|
80
|
38112900
|
Lubricating oil additives without oils or oils obtained from bituminous minerals
|
|
81
|
39073000
|
Epoxide resins in primary forms
|
|
82
|
39206200
|
Other polyethylene terephthalate plates, sheets, foil and flat strip
|
|
83
|
39199090
|
Other self-adhesive plates, sheets, film and other materials
|
|
84
|
39209990
|
Other plastic non-foam plastic plates and sheets
|
|
85
|
39269090
|
Other plastic products
|
|
86
|
39019090
|
Other ethylene polymers in primary forms
|
|
87
|
39014090
|
Other ethylene- α-olefin copolymers with a gravity proportion less than 0.94
|
|
88
|
39069090
|
Other acrylic polymers in primary forms
|
|
89
|
39041090
|
Other pure polyvinyl chloride in primary forms
|
|
90
|
39100000
|
Polysiloxane in primary forms
|
|
91
|
39119000
|
Other polysulphides and polysulphones in primary forms, and other new products not specified under other HS codes provided for in explanatory note 3 of Chapter 39
|
|
92
|
39219090
|
Other plastic plates, sheets, film, foil and flat strip not specified in the PRC Tariff Schedule
|
|
93
|
29031500
|
1, 2-Dichloroethane (ethylene dichloride)
|
|
94
|
40023990
|
CIIR or BIIR, in plates, sheets and strip
|
|
95
|
29349990
|
Other heterocyclic compounds
|
|
96
|
35069190
|
Other adhesives based on rubber or plastics
|
|
97
|
39081011
|
Polyamide-6,6 slices
|
|
98
|
39072090
|
Other polyethers in primary forms
|
|
99
|
39121100
|
Unplasticized cellulose acetate in primary forms
|
|
100
|
39089010
|
Aromatic polyamides and their copolymers
|
|
101
|
39089020
|
Semi- aromatic polyamides and their copolymers
|
|
102
|
39089090
|
Other polyamides in primary forms
|
|
103
|
39201090
|
Other vinyl polymer plates, sheets and tapes
|
|
104
|
34021300
|
Non-ionic surface-active agents
|
|
105
|
34031900
|
Lubricant (the oils containing petroleum oils or oils obtained from bituminous minerals are less than 70% by weight)
|
|
106
|
88024010
|
Aero-planes and other aircrafts of an unladen weight exceeding 15000 kg but not exceeding 45000 kg
|
Notes: The commodity descriptions above are for reference only. The specific commodity scope shall be determined in accordance with the commodity scope of the corresponding HS codes specified in the Import and Export Tariff Schedule of the People’s Republic of China.
[View source.]
