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On September 17, 2018, USTR finalized a list of 5,745 imported products from China (referred to as “List 3”) for which additional tariffs are to be collected starting September 24, 2018 at a rate of 10 percent, rising to 25 percent starting January 1, 2019. The value of List 3 goods is estimated at approximately $200 billion. The Federal Register notice for this announcement was published on Friday, September 21, 2018 and differs somewhat from the Section 301 tariff announcements previously published for List 1 and List 2. Continue Reading Will there be an Exclusion Process for Section 301 List 3 Products?

On September 20, 2018, President Trump released a 16-page Executive Order which delegated various Presidential powers established under the Countering America’s Adversaries Through Sanctions Act (“CAATSA”) to both the U.S. Secretary of Treasury and the U.S. Secretary of State.  As a result of this delegation, the U.S. Treasury Department‘s Office of Foreign Assets Control (“OFAC”) and the U.S. State Department are now empowered to take actions which include (but are not limited to) designating parties to be sanctioned under various CAATSA provisions, selecting the specific menu-based sanctions to be imposed upon those parties and implementing those menu-based sanctions (we previously covered the CAATSA statute here, here and here).  OFAC also updated its website to provide an additional FAQ response explaining the new Executive Order and indicating that it anticipates promulgating regulations to implement these sanctions. Continue Reading Trump Administration Issues New CAATSA Executive Order, Adds 33 Persons to LSP List and Sanctions Chinese Defense Buyer

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On Monday, September 17, 2018, the Office of the United States Trade Representative (USTR) finalized and released the list of  imported products from China  (approximately $200 billion)  for which additional tariffs are to be collected.  According to President Trump, the initial tariffs will take effect on September 24, 2018 at a rate of 10 percent.  At the direction of the President, he has instructed the USTR to, “increase the level of trade covered by the additional duties in order to obtain elimination of China’s unfair policies.”  Subsequently starting on January 1, 2019 this will increase to 25 percent. Continue Reading New Section 301 Tariffs Released with Few Exemptions Granted

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.

IranPresident Trump signed a new Executive Order on August 6, 2018, titled “Reimposing Certain Sanctions with Respect to Iran”. The Executive Order was timed to coincide with the last day of the 90-day wind-down period established for activities associated with certain sanctions relief authorized by the Joint Comprehensive Plan of Action (“JCPOA”).  As a result, the first round of sanctions against Iran will become effective at 12:01 a.m. on August 7, 2018. Continue Reading United States Announces Re-imposition of First Round of Nuclear Sanctions on Iran

The U.S. Trade Representative is proposing an additional 10 percent tariff on approximately 6,000 8-digit tariff codes estimated to be about $200 billion worth of imports.  The USTR has now set a third set of hearing and written submissions for those affected by this new set of proposed tariffs.  The schedule is as follows:

July 27:  Deadline for filing notice of appearance to testify at hearing

August 17:  Written Comments Due

August 20-23: Public Hearings Scheduled

August 30:  Post-Hearing Comments Due

Senior government officials said a decision on the tariffs will be made sometime after August 30.

The notice posted at USTR after close of business July 10 says that staff took into account impacts on consumers, and analysts removed some tariff lines because they were “likely to cause disruptions to the U.S. economy, as well as tariff lines subject to legal or administrative constraints.” Food, chemicals, pesticides, minerals, fabrics, construction materials, handbags, luggage, car parts, appliances, machines, televisions, items made from steel and aluminum, batteries, semiconductor assemblies, furniture and more were on the list. Pharmaceuticals of Chapter 30, and apparel and footwear of Chapters 61-64, were not.

USTR is proposing the tariffs because China has not acquiesced to U.S. demands after initial Section 301 tariffs set at 25 percent on $34 billion in Chinese goods.

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

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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.

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