September 29, 2020

Volume X, Number 273

September 28, 2020

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U.S. Increases Tariffs On Chinese Imports

The president announced this week that special Section 301 tariffs on $200 billion of Chinese imports (List 3) will increase from 10% to 25%. The Office of United States Trade Representative (USTR) issued the official notice of the tariff increase May 8. The rate increase is effective on May 10, 2019.

List 3 is composed of about 6,000 different Harmonized Tariff Schedule of the United States (HTSUS) codes and $200 billion worth of imports; comparatively, the previously imposed List 1 and List 2 collectively cover approximately 1,000 HTSUS codes and $50 billion worth of imports from China.

This rate increase will have a massive effect on almost all industries that rely on imports from China, including agriculture, automotive, electronics, textiles, and energy, just to name a few.

Two other things of particular note from the notice:

(1) increased tariffs will be applied to goods entered for consumption (or withdrawn from warehouse for consumption) on or after 12:01 a.m. Eastern time on May 10, 2019, and exported from China on or after May 10, 2019, so goods that were on the water prior to May 10 will not be affected.

(2) USTR indicates that it will promulgate a product exclusion process in the near future so importers, purchasers, trade associations and other interested parties can request that certain products be excluded from the tariff. Domestic producers will also have the opportunity to object to such exclusion applications.

© 2020 BARNES & THORNBURG LLPNational Law Review, Volume IX, Number 130


About this Author

David M. Spooner, Barnes Thornburg Law Firm, Washington DC, Corporate and Finance Law Attorney

David M. Spooner is a partner in the Corporate Department and Co-Chair of the International Trade Practice Group. Mr. Spooner represents governments, trade associations, and corporate clients on international trade matters, including trade remedies, trade policy and customs issues. He uses his past experience as a high-level political appointee in the Executive Branch and on Capitol Hill to assist clients with their advocacy efforts before both branches of government, as well as before foreign governments.

Prior to entering private practice, Mr...

Linda M. Weinberg International trade lawyer Barnes Thornburg

Linda Weinberg provides practical advice to business and institutional clients on international trade law, including export controls, foreign assets control and customs. She works regularly with the U.S. and foreign government agencies that regulate international trade to help clients realize their distinct objectives surrounding their global commerce initiatives.

Co-chair of the firm’s International Trade practice group, Linda advises and represents clients on commodity jurisdiction, export classification, licensing, technical assistance agreements, and enforcement related to defense articles and dual-use items, encryption software and technical data and services. Her experience extends to a range of industries, including aerospace, satellite, nuclear, electronics, defense, security and software, among others. She has represented clients in export control matters elevated to the inter-agency Operating Committee and the Advisory Committee on Export Policy.

Linda is a member of the core team assisting the Special Compliance Coordinator appointed by the U.S. Department of Commerce to monitor, assess and report on the U.S. export control compliance of Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China, and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (collectively, ZTE).

In addition, Linda provides clients with counseling, licensing services and enforcement representation with respect to U.S. economic sanctions, related USA PATRIOT Act issues, anti-boycott regulation and CFIUS. Notably, she assists research and development companies and universities in complying with U.S. export control laws, particularly with respect to technology transfers to foreign national researchers and students.

Clinton Yu, Barnes Thornburg Law Firm, Washington DC, Corporate Law Attorney

Clinton K. Yu is an associate in the Washington, D.C., office of Barnes & Thornburg LLP. He is a member of the firm’s Corporate Department and the International Trade and Federal Procurement practice groups. Mr. Yu has a wide range of experience on customs and imports, export controls and economic sanctions, and trade remedy matters, in addition to experience on federal procurement and government contract matters. Mr. Yu has experience representing clients in various industries such as energy, food and agriculture, aerospace and defense, electronics and consumer...