Today the Office of the U.S. Trade Representative (USTR) followed up on its May 14, 2024 announcement that it would modify Section 301 duties against certain Chinese products. Today’s notice provides that these modifications will now take effect on September 27, 2024. See Federal Register notice (89 Fed Reg 76581). Products effected by the increases include:
- Battery parts (non-lithium-ion • batteries)—Increase rate to 25% in 2024
- Electric vehicles—Increase rate to 100% in 2024
- Facemasks—Increase rate to no less than 25% in 2024
- Lithium-ion electrical vehicle batteries—Increase rate to 25% in 2024
- Lithium-ion non-electrical vehicle batteries—Increase rate to 25% in 2026
- Medical gloves—Increase rate to no less than 25% in 2026
- Natural graphite—Increase rate to 25% in 2026
- Other critical minerals—Increase rate to 25% in 2024
- Permanent magnets—Increase rate to 25% in 2026
- Semiconductors—Increase rate to 50% in 2025
- Ship-to-shore cranes—Increase rate to 25% in 2024
- Solar cells (whether or not assembled into modules)—Increase rate to 50% in 2024
- Steel and aluminum products— Increase rate to 25% in 2024
- Syringes and needles—Increase rate to no less than 50% in 2024
Details on the implementation, including affected HTSUS codes, are provided in Annexes A and C.
- Annex A to the notice contains an informal table of the tariff increases under the 14 product groups specified and the 382 subheadings and 7 statistical reporting numbers, the tariff rates, and years for tariff increases.
- Annex C contains the HTSUS modifications to impose additional duties, to increase rates of additional duties, and to exclude certain solar manufacturing equipment from additional duties.
- Annex B contains the 14 temporary exclusions for solar manufacturing equipment.
- Annex E contains the subheadings eligible for machinery exclusion process.
Tariff increases indicated for 2024 are applicable with respect to products that are entered on or after September 27, 2024. Tariff increases in 2025 and 2026 are applicable with respect to products that are entered on or after January 1 of the corresponding year. Exclusions for solar equipment included in Annex B are retroactive.
For other products, List 1, 2, 3 and 4a Section 301 duty rates will continue to apply.
Our updated schedule of the Section 301 exclusions is available on our website.
If have questions about this notice or other customs matters, contact George Tuttle III at geo@tuttlelaw.com or at 415-986-8780.
The information in this article is general in nature and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence and may not be considered as such.
Copyright © 2024 by Tuttle Law
All rights reserved.
Information has been obtained from sources believed to be reliable. However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.
|