Comment Today! USTR Publishes Preliminary List of EU Products To Be Covered By Additional Duties

Until recently the Section 301 Tariffs have been associated with China deceptive practices. The USTR is now expanding Section 301 Tariffs to the European Union (EU).  As a result of the World Trade Organization (WTO) repeatedly finding that EU subsidies to Airbus have caused adverse effects to the United States; the Office of the United States Trade Representative (USTR) has launched a process under Section 301 of the Trade Act of 1974 to identify products of the EU to which additional duties may be applied. These additional duties will be in effect from the dated published until the EU removes those subsidies.

USTR estimates the harm from the EU subsidies as $11 billion in trade each year. The final amount is expected to be issued summer of 2019.  “Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft.  When the EU ends these harmful subsidies, the additional U.S. duties imposed in response can be lifted.” USTR’s determination will reflect with the outcome of the WTO dispute settlement proceedings should the findings show that the EU and certain member States have denied U.S. rights under the WTO Agreement.

While the list and, more pressing, the additional duties imposed are finalized, USTR is releasing for public comment a preliminary list of EU products containing a list of 317 tariff subheadings to be covered by additional duties. The products listed in Section 2 of the Annex are being considered for additional duties if they are the product of any of the 28 member States of the EU. The value of the list is approximately $21 billion in terms of the estimated import trade value for calendar year 2018.

Now You Have the Ability to Tell USTR Why Your EU Products Should NOT be on the 301 Section List.

There are two opportunities to remove your product from the 301 Section list.

1. Public Hearing
2. Public Comment

Public Comment

USTR released a Notice of initiation of investigation, hearing, and request for comments, inviting comments from interested persons with respect to the proposed determination and proposed action. USTR invites comments with respect to any aspect of the proposed action, including:

• The specific products to be subject to increased duties, including whether products listed in the Annex should be retained or removed, or whether products not currently on the list should be added.
• The level of the increase, if any, in the rate of duty.
• The appropriate aggregate level of trade to be covered by additional duties.
• Whether increased duties on particular products might have an adverse effect upon U.S. stakeholders, including small businesses and consumers.

Deadline: May 28, 2019

Public Hearing

Remarks at the hearing may be no longer than five minutes to allow time for questions from the Section 301 Committee.

Deadline:

• May 6, 2019: Due date for submission of requests to appear at the public hearing and summary of testimony.
• May 15, 2019: The Section 301 Committee will convene a public hearing in the Main Hearing Room of the U.S. International Trade Commission, 500 E Street SW Washington DC 20436 beginning at 9:30 am. 2

The deadline for both the comments and the hearing are approaching! To start drafting your comment, contact DTL TODAY at 305-456-3830 or info@diaztradelaw.com.