Section 301 List 4 Duties Effective December 15 Suspended

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Section 301 List 4 Duties Effective December 15 Suspended

Section 301 List 4 Duties Effective December 15 Suspended


The United States and China have reached a “phase one” deal in their on-going trade war. The agreement between the countries calls for China to purchase more agriculture products and other exports, while the U.S. will halt new tariffs on List 4 set to take effect Sunday. The United States Trade Representative (USTR) released a notice on December 13, 2019 regarding the modification of the Section 301 duties.

List 4 is separated into two lists with different effective dates—List 1 (4A), covered by Annexes A and B, which became effective September 15, 2019 and List 2 (4B), covered by Annexes C and D, were scheduled to go into effect on December 15, 2019.

As part of this phase one deal, the U.S. has canceled plans to impose tariffs on $156 billion in annual imports of Chinese goods, including, smartphones, electronics and toys. The U.S. will also cut the tariff rate from 15% to 7.5% on $120 billion in annual goods that went into effect on September 1.

Tariffs of 25% will remain on roughly $250 billion in Chinese goods. China has agreed to increase the purchase of American agriculture by $32 billion over previous amounts over the next two years.

Robert Lighthizer explained that the increase in purchases of American agriculture will raise the total amount of farm-product purchases to $40 billion a year, working up to $50 billion a year. Mr. Lighthizer also said that China has made specific commitments regarding intellectual property, counterfeiting, trademark and patent issues and pharmaceutical rights. Mr. Lighthizer and Chinese Vice Premier Liu He are expected to sign the deal in early January, with the agreement entering into force 30 days later.

U.S. Customs and Border Protection released CSMS #40984510 which explains, “Per the President’s December 13, 2019 statement, List 2 duties covered by the $300 billion tariff action have been suspended indefinitely, and will not go into effect on December 15, 2019. CBP will provide updates to any changes to the 15 percent Section 301 duties applicable to the products of China covered by List 1.”

However, this is a developing situation and there is no Federal Register notice action as of yet. We will continue to monitor the situation and send updates as they are released. If you have any further questions, please contact your KRIEGER worldwide representative.

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