On Tuesday, September 18, 2018, the Office of the U.S. Trade Representative (USTR) announced a process for obtaining product exclusions from the 25% tariffs on certain products imported from China as a response to the Section 301 investigation on China’s trade practices. Continue Reading USTR Announces New Process for Exclusion Requests on 2nd Round of Section 301 Tariffs on China

On August 29, 2018, President Trump issued proclamations announcing that companies will be able to request exclusions from the Section 232 quantitative limitations (i.e., quotas) for certain steel and aluminum products imported in to the United States.  In particular, this affects steel and aluminum imports from Argentina, Brazil, and South Korea. Continue Reading Opportunity for Quota Exclusion Requests for Steel and Aluminum Products from Argentina, Brazil and South Korea subject to Section 232 Sanctions

North America MapAfter President Trump announced steel and aluminum tariffs on several of the country’s allies in March 2018, a number of EU countries, Mexico, and Canada immediately announced retaliatory tariffs against American products. Other trade partners and allies have also made plans to seek remedies through the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO). With the impending widespread business impact of these retaliatory actions, companies should look closely at their supply chain to determine risk management considerations.

To elaborate on these recent changes, Husch Blackwell is pleased to team up with The Knowledge Group to offer complimentary passes to the first 30 registrants for a timely upcoming webinar: “Retaliatory Actions Against Trump’s Tariffs: What Businesses Should Do When Allies Hit Back.”

The webinar will provide insights on Trump’s tariffs, industry reactions, risk mitigation strategies and an outlook on what lies ahead. The program will take place on Tuesday, September 11, 2018 from 1:00 p.m.- 2:00 p.m. (ET) The webinar is led by Husch Blackwell Partner, Nithya Nagarajan and John Peterson, Partner at Neville Peterson LLP.

Register here.

On August 7, 2018, the Office of the United States Trade Representative announced the second list of products that will be subject to an additional 25 percent tariff when imported from China.   After a public hearing and comment period, USTR ultimately only removed 5 tariff lines from the list proposed in its notice of June 20, 2018.

The final list can be found here.   The additional tariff will go into effect on August 23.   USTR will publish a Federal Register notice shortly which will include a process by which parties can request exclusions for particular products.    This product exclusion process is expected to be similar to the process announced after the first round of tariff increases. See our blog post here.

For additional information, please contact Robert StangStephen BrophyNithya Nagarajan, Beau Jackson, or Jeffrey S. Neeley.

Globe showing Asia

As previously reported, the Office of the United States Trade Representative (USTR) issued a notice proposing an additional 10 percent tariff on approximately 6,000 8-digit tariff codes estimated to cover approximately $200 billion worth of imports from China. Our blog post can be found here and the list of products can be found here.

On August 1, 2018, the President directed USTR to consider increasing the proposed tariff rate from 10 percent to 25 percent for products on the proposed list.  As a result, USTR extended the timeline for public comment on the proposed product list:

  • August 13, 2018: The due date for filing requests to appear and a summary of expected testimony at the public hearing and for filing pre-hearing submissions has been extended from July 27 to August 13, 2018.
  • September 6, 2018: The due date for submission of written comments has been extended from August 17 to September 6, 2018.
  • September 6, 2018: The due date for submission of post-hearing rebuttal comments has been extended from August 30 to September 6, 2018.

The hearing is still scheduled to take place from August 20-23, 2018.

For additional information, please contact Robert StangStephen BrophyNithya Nagarajan, or Jeffrey S. Neeley.

Globe showing Asia

On Friday, July 6, 2018, the Office of the U.S. Trade Representative (USTR) announced a process for obtaining product exclusions from the 25% tariffs imposed on certain products imported from China.  The tariffs went into effect on July 6, 2018.

USTR has set the following deadlines:

  • All product exclusion requests must be filed by October 9, 2018.
  • Following the public posting of a request on Regulations.gov, the public will have 14 days to file responses to the product exclusion request. After the close of the 14 day response period, interested persons will have an additional 7 days to file a reply.

Exclusions will be effective for one year upon the publication of the exclusion determination in the Federal Register, and will apply retroactively to July 6, 2018.

The federal register notice announcing the new process and providing additional information can be found here.

For additional information, please contact Stephen Brophy, Nithya Nagarajan, or Jeffrey S. Neeley.

IranOn June 27, 2018, the U.S. Department of  Treasury’s Office of Foreign Assets Control (“OFAC”) officially revoked General Licenses H and I.  General License H previously allowed foreign owned or controlled subsidiaries of U.S. companies to engage in limited transactions with Iran that would have otherwise been prohibited under the Iranian Transactions and Sanctions Regulations (the “ITSR”).  General License I previously allowed U.S. persons to negotiate and enter into contingent contracts for exports and reexports to Iran of commercial passenger aircraft and related parts and services that were eligible to potentially receive specific licenses under the Iran Nuclear Deal, otherwise known as the Joint Comprehensive Plan of Action (the “JCPOA”).  OFAC previously advised that these revocations would be forthcoming in May, when President Trump formally announced his decision to withdraw from the JCPOA. Continue Reading OFAC Officially Revokes Iran General Licenses and Signals Aggressive Enforcement Posture

On Monday evening JuneGlobe showing Asia 18, the U.S. Senate adopted draft legislation in its version of the National Defense Authorization Act for Fiscal Year 2019 (the “2019 Defense Bill”) which would: (i) prevent the U.S. Department of Commerce – Bureau of Industry and Security (“BIS”) from fulfilling its agreement to suspend current export controls applicable to Zhongxing Telecommunications Equipment Corporation of Shenzen, China and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (collectively “ZTE”), and (ii) expand existing language in the 2019 Defense Bill to prohibit all U.S. government agencies from contracting with ZTE.  The Senate approved this bill by a vote of 85-10.  After last night’s vote, it has been reported that ZTE shares have dropped more than 25%.  The U.S. House and Senate will still need to reconcile the differences in their versions of the 2019 Defense Bill before they send it to the President, but if they can do so while retaining enough votes to override a Presidential veto then BIS will be unable to remove ZTE from the Denied Persons list and ZTE will continue to be subject to export and re-export prohibitions in transactions involving U.S. origin goods, software and technology. Continue Reading Senate Votes to Block Lifting of US Sanctions against ZTE

Shipping containersOn Friday, June 15, the Office of the U.S. Trade Representative released a proposed list of 284 products from China that may be subject to a 25% tariff. They have released a timeline for public comment on these products, which will be published in the Federal Register on June 20, at this link. Continue Reading USTR Requests Public Comment on Tariffs on Products from China

On Monday, June 18, the President released a statement indicating that he had directed the U.S. Trade Representative to identify another $200 billion worth of Chinese goods for additional tariffs at a rate of 10%. Continue Reading President Trump Threatens Tariffs on another $200 Billion Worth of Chinese Goods