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No Grace Period for Tariff Increase on Imports from China

Thursday, August 29, 2019
Sandler, Travis & Rosenberg Trade Report

The Trump administration has indicated that another tariff increase on imports from China will be imposed with no flexibility for goods already in transit to the U.S.

The administration previously announced plans to impose a Section 301 additional tariff of 10 percent on $300 billion worth of Chinese goods in two stages, effective Sept. 1 (List 4A goods) and Dec. 15 (List 4B goods). China responded by pledging to levy additional tariffs of 5 or 10 percent on $75 billion worth of imports from the U.S. on the same dates.

The White House then said it would increase the additional tariff on List 4 goods from 10 percent to 15 percent. A notice from the Office of the U.S. Trade Representative now states that this higher tariff will be effective with respect to goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on the appropriate dates. As a result, this tariff will apply to subject goods even if they were already on their way to the U.S. prior to these effective dates.

USTR is also planning to increase the additional 25 percent tariff currently in place on $250 billion worth of Chinese goods (lists 1 through 3) to 30 percent effective Oct. 1 following a notice and comment period. However, USTR has yet to issue that notice.

For more information, please contact trade attorney Elise Shibles at (415) 490-1403.

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