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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city

Commercial Information Circulars

24-hour hotline : 23 922 922

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

18 September 2018
(updated on 24 September 2018)

Dear Sirs,

Commercial Information Circular No. 858/2018

US : Implementation of Additional Tariffs on US$200 billion of Mainland Products under Section 301 Investigation

Further to Commercial Information Circular (CIC) No. 757/2018 of 8 August 2018 regarding the US' proposed additional tariffs on certain Mainland products worth approximately US$200 billion under the Section 301 investigation, the US Trade Representative (USTR) released on 17 September 2018 the finalized list of approximately US$200 billion worth of Mainland imports that will be subject to additional tariffs. In accordance with the direction of the US President, the additional tariffs will be effective starting 12:01 a.m. eastern daylight time on 24 September 2018 (US time), and initially will be in the amount of 10%. Starting 1 January 2019, the level of the additional tariffs will increase to 25%.

DETAILS

2.Following the USTR's Section 301 investigation findings released on 22 March 2018, the US President announced that the US would impose additional tariffs on certain Mainland imports and take other actions.

3.In this relation, the US announced on 15 June 2018 to impose a 25% tariff on a list of Mainland imports that are worth US$50 billion in total. The tariff was imposed on the first batch of Mainland imports covering 818 items that are worth about US$34 billion on 6 July 2018 and on the second batch covering 279 items that are worth about US$16 billion on 23 August 2018. Please refer to CIC Nos. 582/2018, 675/2018, 759/2018 and 787/2018 dated respectively 19 June 2018, 9 July 2018, 8 August 2018 and 17 August 2018 for details.

4.The USTR further announced on 10 July 2018 and 1 August 2018 to take further actions by proposing an additional tariff of 10% and subsequently increased to 25% on 6,031 tariff lines of Mainland products worth approximately US$200 billion. The proposed tariff had already undergone public comments and hearing process which was completed on 6 September 2018. Please refer to CIC Nos. 681/2018, 735/2018 and 757/2018 dated respectively 11 July 2018, 2 August 2018 and 8 August 2018 for details.

5.On 17 September 2018, the USTR announced the finalized tariff list on imports of Mainland products worth about US$200 billion, which will be subject to additional duties. The additional duty will be effective starting 24 September 2018 (US time), and initially will be in the amount of 10%. Starting 1 January 2019, the level of the additional tariffs will increase to 25%.

6.The finalized list contains 5,745 full or partial lines of the original 6,031 tariff lines that were on a proposed list of Mainland imports announced on 10 July 2018. After the public comment period, the USTR determined to fully or partially remove 297 tariff lines from the original proposed list. Included among the products removed are certain consumer electronics products such as smart watches and Bluetooth devices; certain chemical inputs for manufactured goods, textiles and agriculture; certain health and safety products such as bicycle helmets, and child safety furniture such as car seats and playpens.

7.Similar to the earlier US$50 billion of Mainland products which are subject to a 25% tariff, the addition tariff of 10% on US$200 billion of Mainland products does not apply to goods for which entry is properly claimed under a provision of Chapter 98 of Harmonized Tariff Schedule of the United States (HTSUS), except for goods entered under subheadings 9802.00.40, 9802.00.50, and 9802.00.60, and heading 9802.00.80 (please refer to CIC No. 787/2018 dated 17 August 2018 for details).

8.For further details of the US' actions as a result of the Section 301 investigation, please refer to the relevant statement, press release and Federal Register:

US President Statement:
https://www.whitehouse.gov/briefings-statements/statement-from-the-president-4/

USTR press release:
https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/september/ustr-finalizes-tariffs-200

Federal Register:
https://www.gpo.gov/fdsys/pkg/FR-2018-09-21/pdf/2018-20610.pdf

ENQUIRIES

9.For enquiries concerning 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.