Section 301 Investigation: Brazil | Sandler, Travis & Rosenberg, P.A.

New! USTR will impose a new Section 301 tariff of 25 percent on imports from Brazil. This follows a Section 301 determination that Brazil’s acts, policies, and practices related to “digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation” are unreasonable and burden or restrict U.S. commerce.

Brazil is also one of the dozens of countries subject to a separate Section 301 investigation of their alleged failure to impose and effectively enforce a ban on the importation of goods produced with forced labor.

Effective Dates

This tariff will be effective with respect to goods entered or withdrawn from warehouse for consumption on or after 12:01 am EDT on July 22, except for goods that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the U.S. before that time and (2) are entered or withdrawn from warehouse for consumption before 12:01 a.m. eastern time on July 29.

Exemptions

Products identified in two annexes will be exempt. USTR said these exemptions include all products proposed for exemption except high-purity dissolving pulp and the non-pharmaceutical applications of certain chemicals and chemical products. This includes informational materials, donations, accompanied baggage, and all articles and parts of articles subject to Section 232 tariffs.

USTR is also exempting additional products beyond those proposed, including aluminum hydroxide; antiques, collectibles, and art; ash containing precious metals or precious metal compounds; certain animal hides, fur skins, and leather; certain seafood products; certain additional pharmaceuticals and pharmaceutical ingredients; certain wood products; iron and steel waste and scrap; organic honey; pig iron; unflavored instant coffee; and used clothing.

Stacking

Imports from Brazil subject to the new tariff will also continue to be subject to applicable antidumping and countervailing duties. In addition, this tariff will apparently be stacked onto any tariff imposed on Brazil in USTR’s Section 301 forced labor proceeding (currently proposed at 12.5 percent).