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Section 301 Tariff (China Tariffs)

Updated: Jun 5

Update:

 

The USTR online portal is now open for comments from the public. 

 

Docket ID: USTR-2024-0007

In a Federal Register notice published on September 8, 2022, USTR announced that the July 6, 2018 and August 23, 2018 actions, as modified, in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation did not terminate on their four-year anniversary dates and would continue. See 87 FR 55073. The notice also announced that the U.S. Trade Representative would conduct a review of the actions. In connection with that review, USTR is seeking public comments on proposed modifications to the actions, the products being proposed for an exclusion process, and proposed exclusions for certain solar manufacturing equipment.

 

The 30-day public docket will open on May 29, 2024. To be assured consideration, written comments must be submitted by June 28, 2024. 

 

If you have any questions or concerns regarding your submission, including the submission of confidential information, please call the 301 hotline at 202-395-5725. (ustr.gov)

 

DATES:  

May 29, 2024, at 12:01 a.m. EDT: The public docket on the web portal at

https://comments.ustr.gov will open for interested persons to submit comments.

June 28, 2024, at 11:59 p.m. EST: To be assured of consideration, submit written comments on the public docket by this date.

 

ADDRESSES: You must submit all comments through the online portal:

 

Dear Concerned Clients,

 

As many of you are aware, the Section 301 Tariff, commonly referred to as the China Tariffs, is set to increase starting August 1, 2024, with further increases on January 1, 2025, and January 1, 2026.



Should the proposal be adopted in its present form, the Section 301 tariff hikes would be as follows:

  • Battery parts (excluding lithium-ion batteries) – from 7.5% to 25% on August 1, 2024

  • Electric vehicles – from 25% to 100% on August 1, 2024

  • Lithium-ion electric vehicle batteries – from 7.5% to 25% on August 1, 2024

  • Lithium-ion non-electric vehicle batteries – from 7.5% to 25% on January 1, 2026

  • Medical gloves – from 7.5% to 25% on January 1, 2026

  • Natural graphite – from 0% to 25% on January 1, 2026

  • Other critical minerals – from 0% to 25% on August 1, 2024

  • Permanent magnets – from 0% to 25% on January 1, 2026

  • Face masks/respirators – from 0-7.5% to 25% on August 1, 2024

  • Semiconductors – from 25% to 50% on January 1, 2025

  • Ship-to-shore cranes – from 0% to 25% on August 1, 2024

  • Solar cells (assembled or not) – from 25% to 50% on August 1, 2024

  • Steel and aluminum products – from 0-7.5% to 25% on August 1, 2024

  • Syringes and needles – from 0% to 50% on August 1, 2024

 

The United States Trade Representative (USTR) is also proposing an exclusion process allowing interested parties to request temporary exemptions for specific machinery used in domestic manufacturing, classified under certain subheadings within Chapters 84 and 85, from the Section 301 tariffs. These exclusions would be valid through May 31, 2025, with procedures for requesting exclusions to be published separately. Additionally, 19 temporary exclusions for specific solar manufacturing equipment are being considered, effective from the date the USTR notice is published.

 

Interested parties are invited to comment on specific aspects of the USTR's proposal. To aid in the preparation of comments, the USTR plans to publish a list of questions on the docket by May 24th.  For reference, Regulations.gov, as well as Press Releases | United States Trade Representative (ustr.gov).



Our IFF CHB and Compliance team is standing by to assist and guide you with any questions.

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