On August 12, 2020, the United States Trade Representative (“USTR”) issued the modified list (Annex 2, section 2) of European Union (“E.U.”) goods subject to Sec. 301 retaliatory tariffs in connection with the World Trade Organization (“WTO”) case against E.U. large aircraft subsidies. While approximately 24,000 comments were filed in response to the USTR’s request for comment regarding changes to the list, only minor changes were implemented. The USTR removed certain products from Greece and the United Kingdom and added an equivalent amount of trade from France and Germany, as summarized below:
- All references to 9903.89.52 replaced with 9903.89.55.
- Removes certain Greek cheeses (0406.90.99). Cheeses classified in this HTS from the remaining applicable countries will be classified in 9903.89.55.
- Removes United Kingdom sweet biscuits (1905.31.00).
- Adds a number of subheadings covering fruit jams and purees (2007.99.05- lingonberry and raspberry jams; 2007.99.10- strawberry jams; 2007.99.15- current and other berry jams; 2007.99.20- apricot jams; 2007.99.25- cherry jams; 2007.99.35- peach jams; 2007.99.60- strawberry pastes and purees, being cooked preparations).
$7.5 billion in imports continue to be subject to these countermeasures and the Sec. 301 tariff rates remain the same at 15% for aircraft and 25% for all other products (which continue to include cheeses, fruits, olive oils, tools, wines, liquors, etc.). The changes take effect on September 1, 2020. The United States and E.U. will continue negotiations in an effort to reach a resolution in this matter.
The current list of products subject to the Sec. 301 tariffs is listed in Annex I and effective through August 31, 2020.
We are available to discuss options to respond to and mitigate the effects of these developments, including classification and origin reviews, valuation strategies, etc. Should you have any questions regarding the applicability of the Sec. 301 tariffs or require additional information, please do not hesitate to contact our office.