Section 301 Tariffs Phase Two
The Office of the United States Trade Representative (USTR) published a list earlier this month of approximately $16 billion worth of imports from China that will be subject to a 25 percent additional tariff as part of the U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property. This second tranche of additional tariffs under Section 301 follows the first tranche of tariffs on approximately $34 billion of imports from China, which went into effect on July 6.
Customs and Border Protection will begin to collect the additional duties on Chinese imports on Thursday August 23, 2018. The second tranche (portion) of products can be accessed here.
In March 2018, USTR released the findings of its exhaustive Section 301 investigation that found China’s acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden U.S. commerce.
Specifically, the Section 301 investigation revealed:
· China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from U.S. companies.
· China deprives U.S. companies of the ability to set market-based terms in licensing and other technology-related negotiations.
· China directs and unfairly facilitates the systematic investment in, and acquisition of, U.S. companies and assets to generate large-scale technology transfer.
· China conducts and supports cyber intrusions into U.S. commercial computer networks to gain unauthorized access to commercially valuable business information.
A third list has been published and these may go into effect sometime in September. You can see the list of tariff numbers possibly impacted here.
Please contact your Import Coordinator if you have any questions.
Thank you!
Sincerely,
Jim Shapiro/Stu Tobin
Thunderbolt Global Logistics LLC
https://thunderboltglobal.com/
410-633-2722