The Office of the U.S. Trade Representative is requesting comments on whether the set of tariff exclusions on Chinese imports on Section 301 List 2 that are set to expire July 31 (see 1907290023) should last another year, it said in a notice. The agency will start accepting comments on the extensions on May 1. The comments are due by June 1, it said. Each exclusion will be evaluated independently. The focus of the evaluation will be whether, despite the first imposition of these additional duties in August 2018, the particular product remains available only from China. The companies are required to post a public rationale.
The Office of the U.S. Trade Representative is requesting comments on whether the set of tariff exclusions on Chinese imports on Section 301 List 1 that are set to expire July 9 (see 1907080023) should last another year, it said in a notice. The agency will start accepting comments on the extensions on May 1. The comments are due by June 1, it said. Each exclusion will be evaluated independently. The focus of the evaluation will be whether, despite the first imposition of these additional duties in July 2018, the particular product remains available only from China. The companies are required to post a public rationale.
The following lawsuits were filed at the Court of International Trade during the week of April 20-26:
CBP created Harmonized System Update (HSU) 2004 on April 27, containing 8,983 Automated Broker Interface records and 1,845 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes recent Section 301 tariff exclusions. The update also covers changes to the Generalized System of Preferences benefits program, including the removal of Thailand from the program, which took effect April 25 (see 1910280044).
International Trade Today is providing readers with some of the top stories for April 20-24 in case they were missed.
The Office of the U.S. Trade Representative granted iRobot an exclusion to the List 3 Section 301 tariffs on the robotic vacuum cleaners it imports from China under Harmonized Tariff Schedule subheading 8508.11.00.00. iRobot applied for the exemption July 1 and based its argument partly on plans to shift production to Malaysia from China. It began producing entry-level vacuums in Malaysia in November, and said it will source additional models there later in 2020. The exclusion is retroactive to Sept. 24, 2018, when the List 3 tariffs took effect at 10%, and is valid through Aug. 7, 2020. The Trump administration hiked List 3 tariffs to 25% on March 2, 2019. iRobot’s was one of 107 exemptions granted for “specially prepared product descriptions” covering 157 “separate exclusion requests,” USTR said (see 2004230010). iRobot is “pleased that the USTR determined that our rationale for an exclusion was appropriate, particularly in light of the tangible steps we have taken to establish our manufacturing activities in Malaysia,” CEO Colin Angle said in an email. “As the largest American pure-play robotics company, with over 800 U.S.-based employees and roughly half of our revenue generated domestically, we believe that an exclusion not only further supports iRobot's ability to maintain its technological and category leadership but it also helps ensure that robotics is an industry in which the U.S. continues to lead the world.”
The Office of the U.S. Trade Representative granted iRobot an exclusion Wednesday to the List 3 Section 301 tariffs on the robotic vacuum cleaners it imports from China under the 8508.11.00.00 product code. IRobot applied for the exemption July 1 and based its argument partly on plans to shift production to Malaysia from China. It began producing entry-level vacuums in Malaysia in November, and said it will source additional models there later in 2020. The exclusion is retroactive to Sept. 24, 2018, when the List 3 tariffs took effect at 10%, and is valid through Aug. 7. The Trump administration hiked List 3 to 25% on March 2, 2019. IRobot estimated it incurred $37.9 million in 2019 tariff costs but had no “material” tariff expenses for 2018. It’s scheduled Tuesday to report Q1 results. IRobot’s was one of 107 exemptions granted for “specially prepared product descriptions” covering 157 “separate exclusion requests,” said USTR. IRobot is "pleased that the USTR determined that our rationale for an exclusion was appropriate, particularly in light of the tangible steps we have taken to establish our manufacturing activities in Malaysia," emailed CEO Colin Angle Thursday. "As the largest American pure-play robotics company, with over 800 U.S.-based employees and roughly half of our revenue generated domestically, we believe that an exclusion not only further supports iRobot's ability to maintain its technological and category leadership but it also helps ensure that robotics is an industry in which the U.S. continues to lead the world."
The Office of the U.S. Trade Representative granted iRobot an exclusion Wednesday to the List 3 Section 301 tariffs on the robotic vacuum cleaners it imports from China under the 8508.11.00.00 product code. IRobot applied for the exemption July 1 and based its argument partly on plans to shift production to Malaysia from China. It began producing entry-level vacuums in Malaysia in November, and said it will source additional models there later in 2020. The exclusion is retroactive to Sept. 24, 2018, when the List 3 tariffs took effect at 10%, and is valid through Aug. 7. The Trump administration hiked List 3 to 25% on March 2, 2019. IRobot estimated it incurred $37.9 million in 2019 tariff costs but had no “material” tariff expenses for 2018. It’s scheduled Tuesday to report Q1 results. IRobot’s was one of 107 exemptions granted for “specially prepared product descriptions” covering 157 “separate exclusion requests,” said USTR. IRobot is "pleased that the USTR determined that our rationale for an exclusion was appropriate, particularly in light of the tangible steps we have taken to establish our manufacturing activities in Malaysia," emailed CEO Colin Angle Thursday. "As the largest American pure-play robotics company, with over 800 U.S.-based employees and roughly half of our revenue generated domestically, we believe that an exclusion not only further supports iRobot's ability to maintain its technological and category leadership but it also helps ensure that robotics is an industry in which the U.S. continues to lead the world."
The National Association of Manufacturers is arguing that Section 301 tariffs should be lowered or at least suspended “to spur economic growth and job creation,” and, where Section 301 refunds were already due, accelerate the process. Speeding up tariff refunds and duty drawback payments would allow companies “to rehire and reinvest as soon as possible,” the trade group said.
Industry is finding it can move components out of China, and it's still affordable to produce those components closer to final assembly plants, especially with more automation, said Peter Anderson, vice president of global supply chain at Cummins, an Indiana-based Fortune 500 company that makes engines for heavy equipment and heavy-duty trucks. The sections 301 and 232 tariffs made Cummins start “to think about what we could do differently,” and he said many Cummins suppliers have “started to take things out of China to mitigate those tariffs.” Anderson was one of several voices on a webinar on how manufacturing will change after the COVID-19 pandemic response, hosted by the Hudson Institute on April 22.