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

16 December 2019
(updated on 19 December 2019)

Dear Sirs,

Commercial Information Circular No. 902/2019

US : Section 301 Tariffs on Mainland Products Worth US$300 billion - Suspension of 15% Tariffs for List 4B (Originally Scheduled for 15 December 2019) and Planned Reduction of Tariffs from 15% to 7.5% for List 4A

The US Trade Representative (USTR) announced on 13 December 2019 that as the US has reached a Phase One trade agreement with China, the US would suspend indefinitely the imposition of 15% additional tariffs on Mainland products under List 4B which was originally scheduled to take effect on 15 December 2019. Separately, the US will also issue in the near future a notice reducing the additional tariffs from 15% to 7.5% on Mainland products under List 4A.

DETAILS

2.The US has earlier imposed additional 25% tariffs on Mainland products worth approximately US$250 billion (List 1: US$34 billion; List 2: US$16 billion; List 3: US$200 billion) under the US' Section 301 investigation against Mainland China. It further announced two finalized lists of Mainland products worth about US$300 billion for additional tariffs 15%, namely List 4A (already implemented on 1 September 2019) and List 4B (originally scheduled to take effect on 15 December 2019). For details, please refer to CIC Nos. 582/2018, 759/2018, 426/2019, 614/2019 and 642/2019 dated 19 June 2018, 8 August 2018, 3 June 2019, 14 August 2019 and 26 August 2019 respectively.

3.On 13 December 2019, the USTR announced that as the US has reached a Phase One trade agreement with China, the US would suspend indefinitely the imposition of 15% additional tariffs on Mainland products under List 4B which was originally scheduled to take effect on 15 December 2019. Separately, it will also issue in the near future a notice reducing the additional tariffs from 15% to 7.5% on Mainland products under List 4A.

4.For details, please refer to the relevant notices:

• USTR press release regarding the Phase One trade agreement between the US and Mainland China:
  https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/december/united-states-and-china-reach#
• Federal Register notice regarding the suspension of 15% tariffs for List 4B (18 December 2019):
  https://www.govinfo.gov/content/pkg/FR-2019-12-18/pdf/2019-27306.pdf
• US Customs and Border Protection's notice on the suspension of 15% tariffs for List 4B (13 December 2019):
  https://content.govdelivery.com/bulletins/gd/USDHSCBP-2715fbe?wgt_ref=USDHSCBP_WIDGET_2

5.Our Department would closely monitor the related developments and keep the trade posted.

ENQUIRIES

6.For enquiries concerning the content of this circular, please contact Miss K Y HO at telephone number 2398 5405.

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.