October 21, 2018

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USTR Announces Second Tranche of Products That Are Subject to Additional Duties

The United States Trade Representative (USTR) has released the second tranche of products from China that will be subject to 25 percent retaliatory duties pursuant to the USTR’s Section 301 Report findings that “China’s acts, policies and practices related to technology transfer, intellectual property, and innovation are unreasonable and discriminatory, and burden U.S. Commerce.” These retaliatory duties, which cover an additional $16 billion in imported Chinese products, will go into effect on August 23, 2018.

As noted in our prior client alert, on June 15, 2018, the USTR released a list of 284 tariff lines that it proposed be subject to 25 percent retaliatory duties. Subsequent to an expedited notice and comment period, the USTR determined that all but five of the 284 tariff items should remain. Those five removed tariff provisions are listed below:

HTSUS Subheading

Description

3913.10.00

Alginic acid, and its salts and esters, in primary forms

8465.96.00

Splitting, slicing or paring machines for working wood, cork, bone, hard rubber, hard plastics or similar hard materials

8609.00.00

Containers (including containers for transport of fluids) specially designed and equipped for carriage by one or more modes of transport

8905.90.10

Floating docks

9027.90.20

Microtomes

Similar to the first list of tariff provisions now subject to retaliatory 25 percent duties as of July 6, the USTR noted that it will implement a formal process to allow for exclusion requests for products impacted by this second list of additional tariffs. We expect the details regarding the exclusion procedure to be published in the Federal Register in the near future.

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Nate Bolin, Drinker Biddle Law Firm, Washington DC, Litigation Law Attorney
Partner

Nate Bolin has significant experience advising clients in compliance, transactional, litigation, policy and regulatory matters involving U.S. export controls, U.S. International Traffic in Arms Regulations (ITAR), economic sanctions, and related areas of national security and international trade law.

In corporate transactions and mergers and acquisitions, Nate regularly advises buyers, sellers and investors on the impact of U.S. export controls, customs laws, trade remedy laws, existing bilateral and multilateral trade...

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Douglass Heffner, International trade lawyer, Drinker Biddle
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Douglas J. Heffner litigates customs and international trade matters including antidumping duty, countervailing duty and safeguard cases. He represents foreign companies in Canada, Europe, Japan and Mexico, as well as domestic producers in industries that range from high-tech to heavy industry, to consumer and industrial goods. He also represents trade associations, government agencies and embassies in a broad range of matters.

202-230-5802
Kathleen Murphy, International trade Lawyer, Drinker Biddle
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Kathleen M. Murphy counsels clients on maximizing trade benefits, making informed global procurement decisions and developing domestic and international trade compliance programs. She represents clients in duty-recovery initiatives and customs challenges concerning tariff classification, valuation, Free Trade Agreements and country of origin determinations, among other areas. She guides clients through compliance audits and validations, as well as penalty investigations conducted by U.S. or foreign customs authorities. She also represents clients in...

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William Rucker, Drinker Biddle Law Firm, International Trade and Customs Specialist
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William R. “Randy” Rucker assists clients with all aspects of U.S. Customs law, including the classification and valuation of merchandise, country of origin and marking determinations, quantitative import restraints, duty-preference and savings programs, understanding and receiving the benefits of free trade agreements, compliance audits, enforcement actions and other trade-related matters.

In order to assist clients with their compliance efforts and satisfy "reasonable care" requirements, Randy frequently performs reviews of companies' internal...

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James Sawyer, Drinker Biddle Law Firm, Chicago, Trade Law Attorney
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James L. Sawyer counsels clients in all areas of U.S. import laws and regulations, including tariff classification, valuation, origin determination and marking, Free Trade Agreements, and duty preference programs. He chairs the firm’s Customs and International Trade Team and is the Regional Partner in Charge of the firm's Chicago office.

James represents clients in enforcement proceedings and investigations, Focused Assessment audits, and other verification proceedings conducted by U.S. Customs and Border Protection (CBP). He frequently assists clients craft...

312-569-1156