The International Trade Commission issued Revision 19 to the 2019 Harmonized Tariff Schedule. The latest update is to add the latest round of exemptions from tranche 3 Section 301 tariffs on products from China, published by the Office of the U.S. Trade Representative on Nov. 29 (see 1911260056). The exclusions are described in new U.S. Note 20(nn) to subchapter III of chapter 99, and are classifiable in new subheading 9903.88.35. The ITC also made conforming changes to other tariff schedule provisions on Section 301 tariffs. The exclusions take effect retroactive to Sept. 24, 2018, when the third tranche of tariffs first came into force.

Agriculture Secretary Sonny Perdue said he doesn't expect the Dec. 15 round of tariffs on consumer goods from China to go into effect then, according to Bloomberg News.“I do not believe those will be implemented and I think we may see some backing away,” Purdue said at a conference in Indianapolis on Dec. 9.

Fossil Group filed for an exemption to the 15 percent List 4A Section 301 tariffs it has paid since Sept. 1 on the traditional watches it imports from China under the 9102.11.25.20 subheading, said a Friday posting in the U.S. Trade Representative’s public docket. “Fossil continues to look for ways to diversify its sourcing for traditional watches,” said the vendor. It recently invested in a factory in India that has “capacity to address our product needs” for the local market, but can’t “address our product needs in the global markets,” it said. “Watch manufacturing is a highly specialized skill which cannot be readily duplicated.” Moving traditional watch manufacturing out of China “is not feasible at this time, especially in the very challenging market for traditional watches that Fossil has been experiencing over the last couple of years,” it said. Movado shares recently plunged after the CEO blamed the success of the Apple Watch for the demise of the traditional watch business (see 1911260063). The exemption request doesn’t include Fossil smartwatch imports, which also have List 4A exposure. Fitbit filed Oct. 31 for a tariff exemption on the smartwatches and fitness trackers it imports under the 8517.62.00.90 subheading. Under USTR rules, any tariff exemption granted goes to all goods imported under the product subheading, not to the company submitting the exclusion request.

TV imports to the U.S. became a much more Mexican-centric business in October, the second full month of 15 percent Section 301 List 4A tariff exposure for finished sets from China, according to Census Bureau statistics released Thursday and accessed through the International Trade Commission’s DataWeb tool. 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, said DataWeb.

CBP added on Dec. 5 the ability in ACE for importers to file entries with recently excluded goods in the third tranche of Section 301 tariffs, it said in a CSMS message. Filers of imported products that were granted an exclusion (see 1911260056) should report the regular Chapters 17, 28, 39, 68, 69, 73, 83, 84, 85, 87, 89 and 94 Harmonized Tariff Schedule number, as well as subheading 9903.88.35, CBP said in the message. “Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when” subheading 9903.88.35 is submitted, CBP said.

The Dec. 3 House passage of the Uyghur Human Rights Policy Act of 2019 will have serious repercussions for U.S.-China trade talks if the bill becomes law, a China Foreign Affairs Ministry spokesperson threatened on Dec. 4. H.R. 649 and the companion S. 178 that cleared the Senate in September demand tough U.S. sanctions on China over reports of government-run detention centers imprisoning millions of Muslim-minority Chinese citizens in Xinjiang.

House passage Tuesday by a 407-1 vote of the Uyghur Human Rights Policy Act of 2019 would have serious repercussions for U.S.-China trade talks if the bill became law, threatened a Chinese Foreign Affairs Ministry spokesperson Wednesday. HR-649 and the companion S-178 that cleared the Senate in September demand tough U.S. sanctions on China over reports of government-run detention centers imprisoning millions of Muslim-minority Chinese citizens in Xinjiang.

France and the EU will retaliate if the U.S. goes forward with new tariffs on French goods, according to multiple reports. The proposed new U.S. tariffs are a result of a Section 301 investigation into the digital services tax in France. The Office of the U.S. Trade Representative said the tax unfairly targets U.S. companies.

The International Trade Commission issued Revision 18 to the 2019 Harmonized Tariff Schedule. The only change was the addition of Mali to the list of countries in Note 2(d) to subchapter XIX of chapter 98 that are considered lesser developed beneficiary countries for the purposes of textile imports under the African Growth and Opportunity Act. The addition of Mali was mandated by Presidential Proclamation 9955, issued Oct. 25. The HTS changes took effect Nov. 30.

President Donald Trump has “no deadline” for striking a trade deal with China, he told reporters Tuesday during a meeting in London with NATO Secretary General Jens Stoltenberg. “I like the idea of waiting until after the election for the China deal.” The Chinese “want to make a deal now, and we’ll see whether or not the deal’s going to be right,” he said. “It’s got to be right.” A trade agreement is “dependent on one thing -- do I want to make it?” Trump said. “We’re doing very well with China right now. We can do even better with the flick of a pen.” China didn’t comment. Trump previously suggested Chinese negotiators would drag their feet in the trade talks in hopes of landing a more favorable deal under a possible Democratic administration. But the Chinese understand that “waiting out” Trump’s term “is not an option,” said Myron Brilliant, the top global relations point man at the U.S. Chamber of Commerce, in October (see 1910100029). Extending the U.S.-China trade war for another year past the 2020 election would be a “bad deal” for “every segment of the economy,” said David French, senior vice president-government relations at the National Retail Federation, virtually the only group to comment Tuesday on Trump's remarks. “We want and need to see a deal as soon as possible,” said French. Four rounds of Section 301 tariffs on Chinese goods at 15 percent and higher “continue to hurt U.S. businesses, workers and consumers and are a substantial drag on the U.S. economy,” he said.