USTR Releases Additional Guidance Ahead of Section 301 EU Tariffs

On October 3rd, the U.S. Trade Representative (USTR) announced that additional Section 301 tariffs on European Union (EU) goods will go into effect on October 18th.

The USTR has published an official notice in the Federal Register advising importers to prepare for the imposition of additional tariffs (ranging from 10% to 25%) with respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on October 18, 2019.

The additional duties will be applied to certain higher-end EU goods, such as cheese, olives, livestock, machinery, textiles and liquor, totaling approximately $7.5 billion in annual trade value.

The notice also states that any product contained in Annex A that is eligible for admission under ‘domestic status’, as defined in 19 CFR 146.43, may only be admitted as ‘privileged foreign status’, as defined in 19 CFR 146.41, if such product is:

  • Subject to the additional Section 301 duty imposed in this notice; AND
  • Admitted into a U.S. foreign trade zone (FTZ) on or after 12:01 a.m. on October 18

In such a case, the product will be subject upon entry for consumption to any ad valorem rates of duty or limitations related to the classification under the applicable HTS subheading.

Click here to view the Federal Register’s official list of EU products published by the USTR.

Please note: On October 17th, the USTR updated the original notice published in the Federal Register to correct a few errors with the HTS subheadings, which include:

  • Deleted 0406.90.14  (some Gouda and Edam cheeses)
  • Added 1602.49.20 (some pork products)
  • Created 9903.89.07 to cover “Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg (provided for in subheading 8802.40.00)”
  • Created 9903.89.50  to cover “Irish and Scotch Whiskies (provided for in subheading 2208.30.30)”

For all Shapiro customers, your Shapiro point of contact will be in touch shortly should these duties apply to your products.

Shapiro will continue to monitor the situation and provide updates as they become available.