May 2019

USTR Proposes Section 301 Duties on $21 billion of products from EU (From our friends at Meeks, Shephard, Leo and Pillsbury)

Further to our article last month, the long simmering U.S. complaint before the World Trade Organization (“WTO”) that the European Union (“EU”) was unfairly subsidizing its civil aircraft industry has reached a boiling point.  The U.S. Trade Representative (“USTR”) has issued a proposed retaliation list under Section 301 of products in 317 tariff subheadings and 9 Harmonized Tariff Schedule statistical reporting numbers, which was estimated to affect $21 billion of products imported from the EU. 

The products could face additional duties up to 100% ad valorem.  A final list of products subject to the increased duties will take into account the report of an arbitrator who is calculating the appropriate level of countermeasures to be authorized by the WTO. 

The USTR has scheduled a hearing and is seeking comments in connection with this proposed Section 301 action and product list.  The deadlines are as follows:

…May 15, 2019 – date of hearing

May 28, 2019 – due date for electronic submission of written comments (docket number USTR–2019–0003)

The complete list of affected products is in Section 2 of the Federal Register notice at

https://www.federalregister.gov/documents/2019/04/12/2019-07267/initiation-of-investigation-notice-of-hearing-and-request-for-public-comments-enforcement-of-us-wto

New List of Goods Proposed for China 301 Tariffs Includes Nearly All Remaining Trade, Including Apparel and Footwear (From Sandler Travis)

The Office of the U.S. Trade Representative announced May 13 a list of approximately $300 billion in goods imported from China on which USTR is proposing to impose Section 301 additional tariffs of up to 25 percent. It includes all apparel footwear, and manufactured textile products, but excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals.

Written comments, including input on the specific tariff levels that should be imposed and requests to exclude specific subheadings from the proposed tariff increase, are due June 17. For more info, please go to

https://www.strtrade.com/news-news-list-4-China-301-tariff-USTR-051319.html?mkt_tok=eyJpIjoiTURGa01UUXpZVGMwT1dFMiIsInQiOiJmVklQN2lGMCt3NFcyQTBuY3pXTVROSU0zVFwvV1craTljQ2t5eWhUYTk1d1JHV0pTZGxxZE0rTzg4ZGdQMDlvMFwvOTJPekZYc0w3cXQ5RTVqZVJqd2pKcWZxbnU4ejlJV0FDdHYzbXF0bU9wYjVaUHdcL2N6RExoN2RxcEg2Uk5IRCJ9#utm_source=tradereport&utm_medium=email

Contact us with any questions.

Lee Hardeman         LeeH@LHCB.com                          Direct: 404-477-3452

Sandy Cato               SandyC@LHCB.com                      Direct: 404-477-3454

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