US : Section 301 Tariffs on Mainland Products - Finalised Action Following Statutory Four-Year Review

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e-mail address : enquiry@tid.gov.hk

Ref. : EIC 111/2/18
EIC 111/3
EIC 111/3/13
CR EIC 111/1/13/3

16 September 2024
(Last updated on 16 December 2024)

Dear Sirs,

Further to Commercial Information Circular (CIC) No. 624/2024 of 31 July 2024 regarding the US' proposed modifications to the actions in the Section 301 investigation, the US Trade Representative (USTR) announced on 13 September 2024 final modifications concerning the statutory review of the tariff actions in the Section 301 investigation on Mainland China.

2.Since July 2018, the US has imposed additional tariffs on Mainland products worth approximately US$370 billion under the Section 301 investigation in four tranches (Lists 1-3: 25%; List 4A: 7.5%). Taking into consideration USTR's statutory four-year review findings of the Section 301 investigation on Mainland China and at the direction of the US President, the USTR issued a Federal Register (FR) notice on 28 May 2024 proposing modifications to the actions in the Section 301 investigation by, among others, adding or increasing tariffs on certain products of Mainland China in strategic sectors for public comments. For details, please refer to CICs No. 378/2024, No. 428/2024 and No. 624/2024 of 16 May 2024, 23 May 2024 and 31 July 2024 respectively.

3.On 13 September 2024, the USTR announced final modifications concerning the statutory review of the tariff actions in the Section 301 investigation on Mainland China as set out in the Annexes to the USTR's notice. The USTR has determined to:

1. impose additional Section 301 duties or increase the rate of existing Section 301 duties on certain products of Mainland China in strategic sectors
   An informal table of the tariff increases under the 14 product groups specified by the US President and the 382 subheadings and 7 statistical reporting numbers of the Harmonized Tariff Schedule of the United States (HTSUS), the tariff rates, and years for tariff increases is set out in Annex A to the USTR's notice. Tariff increases in 2024 are applicable with respect to products that are entered or withdrawn from warehouse for consumption on or after 27 September 2024. Tariff increases in 2025 and 2026 are applicable with respect to products that are entered or withdrawn from warehouse for consumption on or after 1 January of the corresponding year.
2. temporarily exclude certain solar manufacturing equipment from Section 301 duties
   14 temporary exclusions for solar manufacturing equipment are set out in Annex B to the USTR's notice. These exclusions are retroactive and applicable with respect to products that are entered or withdrawn from warehouse for consumption on or after 1 January 2024 and through 31 May 2025.
3. allow for exclusions for ship-to-shore cranes that fulfill contracts executed prior to 14 May 2024 and that enter the US prior to 14 May 2026, among other requirements. The required Importer Certification for ship-to-shore cranes entering under the exclusion is set forth at Annex D to the USTR's notice.
4. provide a list of subheadings eligible for consideration of temporary exclusion under an exclusion process for certain machinery used in domestic manufacturing
   The USTR expects to launch the machinery exclusions process soon. A list of HTSUS subheadings eligible for consideration of temporary exclusion under the machinery exclusion process is set out in Annex E to the USTR's notice.
5. propose increasing tariff rates for certain tungsten products, wafers, and polysilicon, with a public comment process to be set out via a separate notice.

The above HTSUS modifications (including imposing additional duties, increasing rates of additional duties and excluding certain solar manufacturing equipment from additional duties) are set out in Annex C to the USTR's notice.

4.For further details, please refer to the USTR's press release and the USTR's notices in the FR:

USTR's press release (13 September 2024)
https://ustr.gov/about-us/policy-offices/press-office/press-releases/2024/september/ustr-finalizes-action-china-tariffs-following-statutory-four-year-review

USTR's notice in the FR (18 September 2024)
https://www.govinfo.gov/content/pkg/FR-2024-09-18/pdf/2024-21217.pdf

USTR's technical correction in Annex B(4) in the FR notice (16 December 2024)
https://www.govinfo.gov/content/pkg/FR-2024-12-16/pdf/2024-29462.pdf

5.For enquiries concerning the content of this circular, please contact us at telephone number 2398 5405.

Yours faithfully,

(Miss Kwany KOU)
for Director-General of Trade and Industry

Note: While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.