The purpose of this memorandum is to provide notice of the United States Trade Representative’s (USTR) modification determination to impose additional duties on products of the European Union (EU) or certain member states. The effective date is dependent on the section of Annex 1 and may be either on or after 12:01 a.m. eastern daylight time March 5, 2020 or on or after 12:01 a.m. eastern daylight time March 18, 2020. The complete list of affected products, countries of origin, Chapter 99 HTSUS numbers, and the associated effective dates and tariff rates is attached to the end of this memo.
Effective October 18, 2019, the USTR imposed additional duties on certain products of the EU and certain EU member States in this Section 301 investigation to enforce U.S. WTO rights in the Large Civil Aircraft (LCA) dispute published in the Federal Register 84 FR 54245. On December 12, 2019, the USTR announced a review of the Section 301 action and requested public comments.
On February 21, 2020, based on this review, the USTR published a Modification to the LCA dispute in 85 FR 10204 to revise the action being taken by increasing the rate of additional duties on certain LCA, and by modifying the list of other products of certain current and former EU member States subject to additional 25 percent duties.
As specified in the annexes to FR notice 85 FR 10204 , the USTR has determined to increase the duties on certain LCA from 10 percent to 15 percent. The countries that are affected by the duty increase for LCA are France or Germany.
The USTR has also changed the composition of the list of products subject to additional duties of 25 percent. As of this time, the USTR has decided not to increase the rate of additional duties above the additional 25 percent currently being applied to non-aircraft products. The countries that are affected by the change to the list of products are Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden or the United Kingdom. The LCA Section 301 duties only apply to products of the countries set forth in the Annex to FR notice 85 FR 10204.
The USTR has also determined that going forward, the action may be revised as appropriate immediately upon any EU imposition of additional duties on U.S. products in connection with the LCA dispute or with the EU's WTO challenge to the alleged subsidization of U.S. large civil aircraft.
GUIDANCE: The modifications set out in the Annex 1, subparagraphs A and B are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 5, 2020. The modifications in additional import duties for products set out in Annex 1, subparagraph C, apply to merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time March 18, 2020. A complete list of products subject to the remedy and assessed duties are set out in FR notice 85 FR 10204.
Any product listed in the Annex 1, except any product that is eligible for admission under ‘domestic status’ as defined in 19 CFR 146.43, which is subject to the additional duty imposed by this determination, and is admitted into a U.S. foreign trade zone on or after 12:01 a.m. eastern daylight time on March 5, 2020 or March 18, 2020 (only) may be admitted as ‘privileged foreign status’ as defined in 19 CFR 146.41. Such products will be subject upon entry for consumption to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading.
Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer them to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are Required).
Please ensure the FR notice 85 FR 10204 is passed to all Center Directors, Assistant Center Directors, Port Directors, Assistant Port Directors (Trade), Import Specialists, CBP Officers, and Entry Specialists. If field personnel have any questions regarding the Section 301 remedy described in the United States Trade Representative (USTR) Notices of Action, please contact [email protected].
Related Messages: CSMS 40430843, 40281968