Zongtai (Tony) Zhou 周宗泰

March 28, 2019

Background

Following the investigation on China’s acts under the Section 301 of the Trade Act 1974 (“Section 301”) in March 2018, under which the U.S. President is given the authority to take all appropriate actions, including retaliation, to obtain the removal of any act, policy, or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable, or discriminatory, and that burdens or restricts U.S commerce. United States Trade Representative (“USTR”) determined that China’s acts, policies and practices posted unreasonable, discriminatory burdens on U.S. commerce. USTR thereby imposed extra tariffs on certain Chinese products that are imported from China as a response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property.  However, there are certain categories of goods from China could be exempted from this additional tax.

Three Lists of Additional Duty Rate

As of today, there are three lists (some refer to it as tranches) of products on which additional duties would be imposed after List 1 came in effect on July 6; 2018, List 2 on August 23, 2018, and List 3 on September 24, 2018. 

Specifically, List 1 imposed additional duty rate of 25% on $34 billion worth of goods from China; List 2 imposed additional duty rate of 25% on $16 billion worth of goods from China, and List 3 initially imposed additional 10% duty rate on $200 billion worth goods from China, but it was increased to 25% on January 1st, 2019.  Meanwhile, it has been announced that there is the possibility of the publication of a List 4, but there is not yet an accurate date of its publication; however, it is estimated to be an additional 25% duty rate on $267 billion worth of goods from China, which will encompass all the rest of goods that were not included in the first three lists.  

Exemptions from Additional Tariffs

1st Exclusion on List 1

On December 28, 2018, USTR announced the first batch of products exclusions (one-year exclusion) from section 301 tariffs, these products are either fully or partially exempted.  Moreover, this product exclusions apply retroactively as of July 6, 2018, when the first set, the List 1 one that imposed additional 25% tariffs on $34 billion worth of goods, of tariffs came into effect.  This granted exclusion apply not only to U.S. importers who requested for the exclusion, but all U.S. importers of the excluded product categories and tariffs code.

The majority of the products that are excluded are under following categories: (1) Single-row radial bearings having an outside diameter between 9mm and 100mm; however, single row radial bearing with a diameter under 9mm, or over 100mm, have not been excluded; (2) injection or compression type molds for rubber or plastics ; (3) linear-acting hydraulic engines and motors ; (4) refrigerating or freezing equipment like ice making machines and drinking water coolers; and Thermostats for air conditioning or heating system.

Furthermore, the fully exempted products are under the following categories: (1) hydraulic power engines; (2) drinking-water coolers; (3) injection molds; (4) single-row, radial ball bearings having an outside diameter of 9 mm but not over 30 mm; (5) single-row, radial ball bearings having an outside diameter over 30 mm but not over 52 mm; (6) certain ball bearings having an outside diameter over 52 mm but not over 100 mm; and (7) CB radio transceivers.

Additionally, partially exempted products are under the categories: (1) outboard marine engines; (2) salad spinners; (3) water filtration apparatus; (4) winches; (5) belt conveyors; (6) papermaking machinery components; (7) workstands for miter saws; (8) radiation therapy systems; (9) thermostats for HVAC system.

2nd Exclusion on List 1

On March 25, 2019, USTR announced the second batch of exclusions to the List 1 of Chinese goods subject to a 25% valorem tariffs on $34 billion worth of goods from China, which went into effect on July 6, 2018.  This exclusion applies retroactively on July 6, 2018, and extend for one year after the March 25th, 2019, the publication date. 

Following categories are the excluded products in the most recent exclusions: (1) submersible pumps; (2) breast pumps; (3) impellers and impeller housings; (4) salad spinners, (5) water filters for pools, (6) aquariums, etc.; (7) water purifiers; (8) steel bucket elevators; (9) rubber tracks used on construction equipment; (10) automated data processing storage units; (11) self-propelled pavers; (12) check valves; (13) electric motors; (14) electrical transformers; (15) soldering irons; (16) liquid crystal display modules; and (17) musical tuner.

Since USTR is reviewing all the requests on a rolling basis, there are, as of now, 1,004 exclusion requests have been granted; they are, however, 5,312 requested denied and 4,520 requests are still pending.  For those that have not apply for exclusion, or whose request was denied, USTR suggested that it is still possible that the products could still be qualified if there is a later filed request that cover the same 10-digit HTS provision is granted.

Exclusion on List 2 & List 3

Despite USTR initiated a similar exclusion procedure on List 2 tariffs (the one went into effect on August 23, 2018 and imposed additional duty rate of 25% on $16 billion worth of goods from China) on September 18, 2018, which was concluded on December 18, 2018, there is no final conclusion/determinations in terms of the dealings with the exclusions request filing for List 2.  Meanwhile, there is no proceedings on exclusion for List 3 (imposed additional 10% duty rate on $200 billion worth goods from China, but it was increased to 25% on January 1st, 2019). 

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简概

2018年3月，美国政府根据《1974年贸易法》的第301条（“（1法条款”）对中国“不公平商业行为”进行了调查。此法授权美国总统采取包括报复在内的一切适当行动，保护美国国家贸易利益，促使外国政府停止违反国际贸易协定且限制美国贸易的政策和行为。经过调查，美国贸易代表（USTR）认定中国的政策和行为对美国贸易造成不合理和歧视性的负担，损害了美国的国家贸易利益。因此，USTR对部分中国产品征收额外关税，以此回应中国强行要求美国公司转让技术和知识产权的不公平贸易行为。但是，某些类别的中国商品可免除此额外税。

额外征收关税的三个清单

USTR迄今发布了三个将会被额外征取关税的商品清单。 清单一是于2018年七月6日实施的，清单二是于2018年8月23日实施的，清单三是有2018年9月24日实施的。

清单一对来自中国的价值为340亿美元的商品征收25％的额外关税；清单二对来自中国的价值为160亿美元的商品征收25％的额外关税；清单三最初对来自中国的价值为2000亿美元的商品征收10％的额外关税，但在2019年1月1日增加到25％。 USTR宣布有可能出版清单4，但目前还没有确切的出版日期; 但是据相关人员估计，清单4将会对于来自中国的价值为2670亿美元的商品征收25％的额外关税，其将包括前三个列表中未包括的所有其他来自中国的商品。

豁免关税的商品

清单一上的第一批豁免额外关税的产品

2018年12月28日，USTR公布了在清单一中的第一批获得免除额外关税的商品（豁免清单一），这些商品将会被免除从2018年7月6日起一年的额外关税；这些商品中有些是获得了豁免全部额外关税的，也有些是获得了免除部分额外关税的。获得免除额外关税的条款不仅适用于在根据此法条下申请了免除额外关税的美国进口商，而将用于所有在豁免额外关税清单上的产美国进口商（也包括没有提交申请的）的商品；其商品将以品类别和关税代码在清单上呈现。

大多数豁免除额外关税的产品属于以下类别：（1）外径为9mm至100mm的单列径向轴承，但不包括直径小于9mm或超过100mm的单列径向轴承; （2）用于注射或压缩型橡胶或塑料的模具; （3）线性作用液压发动机和电动机; （4）制冰机和饮用水冷却器等冷冻或冷冻设备;用于空调或加热系统的恒温器。

以下产品类别豁免全部额外关税：（1）液压动力发动机; （2）饮用水冷却器; （3）注塑模具; （4）单列径向球轴承，外径9毫米但不超过30毫米; （5）外径超过30毫米但不超过52毫米的单列径向球轴承; （6）某些滚珠轴承的外径超过52毫米但不超过100毫米; （7）CB无线电收发器。

以下产品类别豁免部分额外关税：（1）船外发动机; （2）沙拉旋转器/沙拉甩水器; （3）水过滤装置; （4）绞车; （5）皮带输送机; （6）造纸机械和部件; （7）斜切锯的工作台; （8）放射治疗系统; （9）用于HVAC系统的恒温器。

清单一上的第二批豁免额外关税的产品

2019年3月25日，USTR公布了在清单一中的第二批获得免除额外关税的商品（豁免清单二），这些商品（没有包含在豁免清单一中的）将会被免除从2018年7月6日起一年的额外关税该商品。

以下类别是最近获得豁免额外关税的产品：1）潜水泵; （2）吸乳器; （3）叶轮和叶轮外壳; （4）沙拉旋转器/沙拉甩水器，（5）游泳池用水过滤器，（6）水族箱类; （7）净水器; （8）钢斗提升机; （9）建筑设备上使用的橡胶履带; （10）自动数据处理存储单元; （11）自走式摊铺机; （12）止回阀; （13）电动机; （14）电力变压器; （15）烙铁; （16）液晶显示模块; 和（17）音乐调谐器。

由于USTR正在持续审查所有申请豁免额外关税的请求，目前已批准了1004项额外关税豁免申请；但是，也有5312项申请被拒绝；到目前为止，仍然还有4520件请求正在审理中。对于那些没有申请豁免额外关税的，或者请求被拒绝的商家，USTR建议继续提交申请，因为如果有后来提交的请求涵盖相同的10位HTS序列号，那么产品仍有可能仍然可能豁免额外关税。

清单二与清单三上的产品豁免额外关税情况

尽管USTR于2018年9月18日开展的关于清单二 关税的类似申请免除额外关税的程序（该清单于2018年8月23日生效，对来自中国的价值160亿美元的货物征收25％的额外关税）于2018年12月18号结束，但在并没有对清单2的豁免额外关税申请方面作出决议。同时，到目前为止，还没有关于清单3豁免额外关税申请程序的消息（在2018年9月24日生效，对来自中国的价值2000亿美元的货物征收又10%变更为25％的额外关税）。