Vizio became the first major TV brand to seek exclusions from the List 4A Section 301 tariffs on finished flat-panel sets from China, filing Tuesday for exemptions on four classifications of 8528.72.64 goods that vary by screen size. Vizio is “working closely” with its third-party original design manufacturers to shift production outside China, posted the vendor in the Office of the U.S. Trade Representative public docket. “Some of the ODMs moved manufacturing to third countries including Mexico in the late Q3 2019 timeframe.” Despite those efforts, it’s “extremely difficult” for Vizio to transfer production to other third countries, including Taiwan, Thailand and Vietnam, “without significant cost” that would “far exceed” the brand's “modest profit margin,” it said. That would “likely” result in a “significant price increase to American consumers,” it said. “Responsibly exploring alternatives to manufacturing, without sacrificing quality, safety, and the low prices that define our brand takes considerable time.” TV imports to the U.S. became a much more Mexican-centric business in October, the second full month of 15 percent tariff exposure for finished sets from China (see 1912060006). More than two-thirds of October’s TV unit imports to the U.S. came from Mexico, while China’s share plummeted to half its October 2018 level. List 4A tariffs took effect Sept. 1 at 15 percent but are due to be rolled back by half sometime after the U.S. and China sign their phase one trade deal at the White House Jan. 15 (see 1912310016).

The panel deciding which French products should face Section 301 tariffs was intrigued by a point made by the Cheese Importers Association of America -- who could pay more on 21 Harmonized Tariff Schedule headings if all the proposed tariffs are included.

Vizio became the first major TV brand to seek exclusions from the List 4A Section 301 tariffs on finished flat-panel sets from China, filing Tuesday for exemptions on four classifications of 8528.72.64 goods that vary by screen size. Vizio is “working closely” with its third-party original design manufacturers to shift production outside China, posted the vendor in the Office of the U.S. Trade Representative public docket. “Some of the ODMs moved manufacturing to third countries including Mexico in the late Q3 2019 timeframe.” Despite those efforts, it’s “extremely difficult” for Vizio to transfer production to other third countries, including Taiwan, Thailand and Vietnam, “without significant cost” that would “far exceed” the brand's “modest profit margin,” it said. That would “likely” result in a “significant price increase to American consumers,” it said. “Responsibly exploring alternatives to manufacturing, without sacrificing quality, safety, and the low prices that define our brand takes considerable time.” TV imports to the U.S. became a much more Mexican-centric business in October, the second full month of 15 percent tariff exposure for finished sets from China (see 1912060006). More than two-thirds of October’s TV unit imports to the U.S. came from Mexico, while China’s share plummeted to half its October 2018 level. List 4A tariffs took effect Sept. 1 at 15 percent but are due to be rolled back by half sometime after the U.S. and China sign their phase one trade deal at the White House Jan. 15 (see 1912310016).

CBP has assessed about $53 billion in duties under the major trade remedies started during the Trump administration as of Jan. 8, according to CBP's trade statistics page. That includes $42.8 billion in duties from the Section 301 tariffs on goods from China, and $177.8 billion in Section 301 tariffs on goods from the EU. CBP also has assessed about $6.6 billion under the Section 232 tariffs on steel and $1.9 billion under tariffs on aluminum. The Section 201 trade remedies on washing machines, washing machine parts and solar cells account for $1.4 billion in assessed tariffs. CBP's statistics account for refunds provided to importers, an agency spokesperson said.

The Office of the U.S. Trade Representative created a detailed guidance for how to go about creating exclusions through carve-outs from the Section 301 tariff headings. The guide lays out the considerations for USTR when “drafting” such carve-outs, which can be submitted to the International Trade Commission and CBP “for approval and comments.” ProPublica posted a copy of the document, which was likely attained through a Freedom of Information Act request. The document was mentioned in a broader ProPublica story on tariff exclusions.

Vizio became the first major TV brand to seek exclusions from the List 4A Section 301 tariffs on finished flat-panel sets from China when it filed Jan. 7 for exemptions on four 10-digit classifications of goods under subheading 8528.72.64 that vary by screen size. Vizio is “working closely” with its third-party original design manufacturers to shift production outside China, the vendor posted in the Office of the U.S. Trade Representative public docket. “Some of the ODMs moved manufacturing to third countries including Mexico in the late Q3 2019 timeframe.” Despite those efforts, it’s “extremely difficult” for Vizio to transfer production to other third countries, including Taiwan, Thailand and Vietnam, “without significant cost” that would “far exceed” the “modest profit margin,” it said. That would “likely” result in a “significant price increase to American consumers,” it said. “Responsibly exploring alternatives to manufacturing, without sacrificing quality, safety, and the low prices that define our brand takes considerable time.” List 4A tariffs took effect Sept. 1 at 15 percent, but are due to be rolled back by half (see 1912310010).

The panel deciding which French products should face Section 301 tariffs was intrigued by a point made by the Cheese Importers Association of America -- who could pay more on 21 Harmonized Tariff Schedule headings if all the proposed tariffs are included.

Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said he's been told it's going to take three or four days for six other Senate committees to clear the U.S.-Mexico-Canada Agreement so that it can go to the floor for a vote. Whether it can come up the week of Jan. 21 will depend on whether the articles of impeachment have arrived by then, he noted.

The PowerPic wireless-charging picture frame for mobile phones imported from China under the 8504.40.85.00 subheading was one of 68 exclusions the Office of the U.S. Trade Representative granted from the List 3 Section 301 tariffs, said Monday’s Federal Register. The exclusions are retroactive to Sept. 24, 2018, when the tariffs took effect at 10 percent before being raised to 25 percent months later. “After a great deal of time, effort and expense by our small company, we are 100% convinced that there are no manufacturers anywhere in the world but in China which can produce our products at prices and in quantities needed to allow us to succeed in selling to consumers,” said importer Twelve South in its PowerPic exclusion request.

The International Trade Commission is working to add provisions on the Trade Agreement between the United States and Japan to the Harmonized Tariff Schedule of the U.S., James Holbein, director of the ITC’s Office of Tariff Affairs and Trade Agreements, said in an interview Jan. 7. Technical issues with the ITC’s electronic system for updating the tariff schedule had led to the omission of new General Note 36, as well as provisions in chapter 99, from the 2020 Basic Edition of the HTS, Holbein said. The ITC’s information technology office is currently working to fix those issues, he said.