On September 21, 2018, the Office of the US Trade Representative (USTR) published in the Federal Register a notice of modification of action imposing additional duties on products of China classified in the subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) set out in Annex A to the notice (List 3). The rate of additional duty is initially 10 percent ad valorem. On January 1, 2019, the rate of additional duty will increase to 25 percent ad valorem. USTR had originally identified 6,031 tariff lines for the third tranche. Based on comments received from the public pursuant to an earlier Federal Register notice and six days of hearings conducted by USTR [transcripts are on www.regulations.gov under docket number USTR–2018–0026], the list has been reduced to 5,745 full and partial tariff subheadings with an approximate annual trade value of $200 billion.
In order to implement this determination, effective September 24, 2018, subchapter III of chapter 99 of the HTSUS is modified by Annex A and Annex B of the notice. Products of China that are provided for in new HTSUS headings as established by Annex A to the notice that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on September 24, 2018, shall be subject to an additional duty of 10 percent ad valorem. As provided in Annex B, the rate of additional duty shall increase to 25 percent for goods that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern standard time on January 1, 2019.
Any product listed in Annex A, except any product that is eligible for admission under ‘domestic status’ as defined in 19 C.F.R. 146.43, which is subject to the additional duty imposed by this determination, and that is admitted into a US foreign trade zone on or after 12:01 am eastern daylight time on September 24, 2018, only may be admitted as ‘privileged foreign status’ as defined in 19 C.F.R. 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.