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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

23 December 2019

Dear Sirs,

Commercial Information Circular No. 926/2019

US : Section 301 Tariffs on Mainland Products Worth US$34 billion - Seeking Public Comments on Extension of Second Batch of Products Excluded from 25% Tariffs for Up to Twelve Months

The US Trade Representative (USTR) posted a notice on 20 December 2019 seeking public comments on whether to extend the second batch of products excluded from 25% tariffs imposed on Mainland products worth approximately US$34 billion ("List 1") under the Section 301 investigation. The second batch of product exclusions is set to expire on 25 March 2020 and the USTR will consider extending certain exclusions for up to twelve months. Written comments should be submitted to the US from 15 January 2020 to 15 February 2020.

DETAILS

2.On 6 July 2018, the US imposed an additional tariff of 25% on Mainland products worth approximately US$34 billion ("List 1") under the Section 301 investigation. The USTR also initiated an exclusion process for stakeholders to submit requests for the exclusion of specific products from the additional tariffs. Subsequently, the USTR announced from December 2018 to September 2019 eight batches of excluded products. For details, please refer to Commercial Information Circular nos. 1163/2018, 209/2019, 300/2019, 372/2019, 440/2019, 516/2019, 701/2019 and 724/2019 dated 28 December 2018, 21 March 2019, 18 April 2019, 15 May 2019, 4 June 2019, 9 July 2019, 19 September 2019 and 30 September 2019 respectively.

3.On 20 December 2019, the USTR posted a notice seeking public comments on whether to extend the second batch of products excluded from 25% tariffs imposed on Mainland products worth approximately US$34 billion ("List 1"). The second batch of product exclusions is set to expire on 25 March 2020 and the USTR will consider extending certain exclusions for up to twelve months. The comment process has the following important dates and features:

  • The web portal for submitting comments (http://www.regulations.gov) will open on 15 January 2020 at 12:01 am Eastern Time. The Docket Number is USTR-2019-0024.
  • Commenters should complete Form A, while US importer and purchasers should complete Form B.
  • The deadline for submitting comments is 15 February 2020.

4.The USTR will evaluate possible extension of each exclusion on a case-by-case basis and the focus of the evaluation will be whether the particular product remains available only from China. It will also consider whether the imposition of additional duties on the products covered by the exclusion will result in severe economic harm to the commenter or other US interests. Commenters are invited to address specifically:

  • Whether the particular product and/or a comparable product is available from sources in the US and/or in third countries.
  • Any changes in the global supply chain since July 2018 with respect to the particular product, or any other relevant industry developments.
  • The efforts, if any, the importers or US purchasers have undertaken since July 2018 to source the product from the US or third countries.

5.For details, please refer to the relevant USTR notice: https://ustr.gov/sites/default/files/enforcement/301Investigations/Request-for-Comments-Concerning-the-Extension-of-Particular-Exclusions.pdf

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.