Commercial Information Circulars

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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

2 August 2018

Dear Sirs,

Commercial Information Circular No. 735/2018

US : Proposed Adjustment of Additional Tariff (from 10% to 25%) on Certain Mainland Products Worth US$200 Billion under Section 301 Investigation

Further to Commercial Information Circular (CIC) No. 681/2018 of 11 July 2018 regarding the US' proposed additional 10% tariffs on 6,031 tariff lines of Mainland products worth approximately US$200 billion under the Section 301 investigation, the US Trade Representative (USTR) announced on 1 August 2018 that it had been directed by the US President to consider increasing the proposed level of the additional tariff from 10% to 25%.  The proposed tariff will undergo public comments and hearing process before a decision is made.  In light of the possible increase of the additional tariff rate to 25%, the close of the written comment period is extended from 30 August 2018 to 5 September 2018, and the due date for requests to appear at the public hearing is extended to 13 August 2018.

Details

2.The USTR released on 15 June 2018 two sets of US tariff lines of Mainland products worth about US$50 billion for an additional 25% tariff under the US' Section 301 investigation into China's intellectual property issues. The first batch, which took effect on 6 July 2018, contains 818 tariff lines for an additional tariff of 25%. The USTR had also provided procedures for product exclusion requests from the additional tariffs. As to the second batch which contains 284 proposed tariff lines, the US has not yet announced the implementation date. Please refer to CIC Nos. 582/2018, 659/2018 and 675/2018 dated 19 June 2018, 6 July 2018 and 9 July 2018 for details.

3.The USTR further announced on 10 July 2018 to take further actions by proposing an additional 10% tariff on 6,031 tariff lines of Mainland products worth approximately US$200 billion. The proposed tariff will undergo public comments and hearing process and public hearings would be held from 20-23 August 2018. Please refer to CIC No. 681/2018 of 11 July 2018 for details.

4.On 1 August 2018, the USTR announced that it had been directed by the US President to consider increasing the proposed level of the additional tariff from 10% to 25%.   In light of the possible increase of the additional tariff rate to 25%, the close of the written comment period is extended from 30 August 2018 to 5 September 2018, and the due date for requests to appear at the public hearing is extended to 13 August 2018.

5.For further details of the US' actions in response to the Section 301 investigation, please refer to the relevant notices:

USTR statement on proposed tariffs on Mainland goods worth US$200 billion
https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/august/statement-us-trade-representative

USTR notice on proposed tariffs on Mainland goods worth US$50 billion
https://ustr.gov/sites/default/files/2018-0018%20notice%206-15-2018_.pdf

USTR notice on product exclusion process
https://ustr.gov/sites/default/files/enforcement/301Investigations/FRN%20exclusion%20process.pdf

ENQUIRIES

6.For enquiries about the content of this circular, please contact the undersigned at 2398 5682.

Yours faithfully,

(Miss Ivy TAM)
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.