What to Do If You Have Products Subject to New U.S. Tariffs

Where It All Began

  • It all began with the U.S. Administration’s stated concerns that China Trade Practices are doing seriously harm to U.S. companies at home and abroad, as well as limiting U.S. companies’ ability to export U.S. products to China.
    • China uses joint venture requirements, foreign investment restrictions, and licensing processes to require U.S. or pressure technology transfers from U.S. companies.
    • China deprives U.S. companies of the ability to set market-based terms in licensing and other technology related negotiations.
    • China directs and unfairly facilitates the systematic investment, and acquisition of, U.S. companies and assets to generate large-scale technology transfers.
    • China conducts and supports cyber intrusions into U.S. commercial computer networks to gain unauthorized access to commercially valuable business information.
  • Some of the retaliation from China as well as the USA’s other trading partners is also related to the fact that the U.S. imposed tariffs on steel and aluminum imports earlier this year.
  • USTR’s concern is that the WTO was not designed to handle trade issues with a major economy that is not strictly motivated by the need to “make a profit.”

Other Related Issues

  • The Chinese have retaliated and will likely continue to retaliate until there is some form of negotiated settlement.
    • This retaliation is having a significant impact on U.S. farmers.
    • The new retaliation lists hit almost every product that the Chinese import from the U.S.
    • Since China does not import from the U.S. nearly as much as they export to the U.S., they have effectively run out of bullets to retaliate “tit for tat.”
  • Both countries retaliation list include tariff lines where there is currently no trade!
  • President Donald Trump has announced his intentions to place similar levies on all of the rest of Chinese exports if there is no solution.
  • China has begun penalizing U.S. companies in China and will likely begin collecting tariffs on their exports to the U.S. on sensitive items such as rare earth metals.

What You Should Do

  • If you have products on Tranche 1, you should consider visiting this dedicated U.S. Trade Representative website to request an exclusion.
  • If you have products on Tranche 2, once the new Federal Register notice is issued, plan to file for individual product exemptions.
  • Tranche 3:
    • Now that the list has been published, it needs to be carefully reviewed to see if products of interest to you are included.
    • Prepare to request exemptions, if and when USTR publishes a procedure for handling such requests.
  • In the case of each of these Tranches, please be aware that if exemptions are granted, all importers will benefit from such exemptions, and any duties collected will be refunded. Therefore, prepare your invoicing system to keep track of these duties as your customers will be expecting refunds.
  • With all tranches, these tariffs should be considered surtaxes, unless the final federal register notice declares otherwise for items recently approved for Temporary Duty Suspensions.
  • Customs has issued a ruling that these tariffs can be included in duty drawback filings.
Topics: , ,

Leave a Reply

Agrichemicals

Adjuvants

Clariant, Eastman Enter Distribution Agreement

Clariant, a world leader in specialty chemicals, and Eastman Chemical Company, a global advanced materials and specialty additives company, announced

Agrichemicals

What Does a Traceability Software Product Do in Agribusiness?

Editor’s note: This article was originally published on LinkedIn. I’ve been traveling over the last one week, on-boarding our first large

Agrichemicals

University of Utah Recognizes Aqua-Yield/Nano Institute Partnership in New Annual Report

In a newly-published annual report, the University of Utah’s Center for Technology & Venture Commercialization (TVC) touts the first-of-its-kind collaboration

Corn closeup
Herbicides

Bayer Posts More Than 300 Glyphosate Safety Studies Online

Today, Bayer marks the first anniversary of its Transparency Initiative, designed to enhance trust in the science behind crop protection

Agrichemicals

UPL Mauritius to Acquire Bioquim Group

UPL Mauritius, a subsidiary of UPL, India is set to acquire 100% shares of Bioquim Group which includes companies based

Parry-lab
Agrichemicals

Crop Protection: How to Lead Innovation in R&D Teams (Part 5)

Editor’s note: This is the fifth of seven articles in a series on Strategic R&D Management in AgChem and BioScience

Aphids Cotton
Agrichemicals

Nichino America Gets EPA Approval for Insecticide

PQZ insecticide from Nichino America, Inc. has been granted a U.S. EPA label expansion for food crop use, the company

Agrichemicals

Crystal Crop Protection Acquires Three Syngenta Brands

New Delhi-headquartered Crystal Crop Protection, a firm backed by private equity firm Everstone Capital, has acquired three insecticide and fungicide

Agrichemicals

Bayer to Offer Access to Glyphosate Studies

Bayer will soon include safety study summaries of glyphosate on its dedicated transparency platform. This next step will mark the first

Agrichemicals

What to Expect for U.S. Dicamba Use in 2019

Long-awaited news from U.S. Environmental Protection Agency on its decision to extend the registration for the new dicamba technologies arrived Halloween

Agrichemicals

Bayer: Study Shows its Soybeans Reduce Environmental Impact

Results from a five-year peer-reviewed study on Intacta RR2 PRO™ soybeans planted in South America were recently published, indicating that

Jay-Vroom-Covers-featured-image
Agrichemicals

A Salute to Retired CropLife America President Jay Vroom

Editor’s note: It goes without saying that crop protection manufacturing is a central point of interest to readers of this

US-China-Trade-War
Agrichemicals

Expect Herbicide Price Hikes in 2019

Herbicide price hikes across the board are an inevitability for 2019, as the entire U.S. ag community deals with a

Agrichemicals

Corteva to Launch New Fungicide, Starting in Asia Pacific

Corteva Agriscience announced Adavelt active as the new brand name for a novel fungicide that will offer farmers curative and

wheat-field
Agrichemicals

Albaugh Discusses 2018 Trials of CoAXium Wheat System

Albaugh announced that the CoAXium Wheat Production System driven by Aggressor herbicide exceeded expectations in 2018 performance evaluation trials, demonstrating

Agrichemicals

FMC Launches Insecticide/Fungicide

FMC Corp. has launched Ethos 3D insecticide/fungicide, formulated specifically for the novel 3RIVE 3D in-furrow application system that converts traditional

Corn-field
Herbicides

The U.S. Battle over Glyphosate Has ‘Old World’ Roots

Although it’s been in use since 1974, glyphosate has come under intense attack here in the U.S. just recently, writes

Kenya-Agriculture
Africa/Middle East

Kenya’s Crop Protection Industry Fears ‘Dire Consequences’ of New Pesticides Tax

The agrichemcials industry in Kenya is up in arms over a decision by the government to impose a 16% value-added

Agrichemicals

U.S. EPA Renews Dicamba Label, with New Restrictions

Long-awaited news from U.S. EPA came on the evening of Oct. 31 that it has decided to renew the label

Latest News

Asia

India: Enabling Modern Agriculture Through IoT

Since the first green revolution in the 1960s that radically transformed the face of Indian agriculture, the sector has consistently

Asia

Reuters: Trump Greenlights Next Round of Farm Payments in China Trade War

The Trump administration will move forward with plans to distribute a second round of payments to farmers caught in the

Markets

AgriBusinessGlobal.com: Top 10 Stories from 2018

What a year it’s been for the global agribusiness industry. While the mergers and acquisitions once again dominated headlines in

Trade Summit

Three Things We Learned at Trade Summit Southeast Asia

Since 2006 AgriBusiness Global™ (ABG) has hosted Trade Summits in all corners of the world in an effort to empower

Asia

AgFunder Releases India AgriFood Startup Investing Report

AgFunder has released the inaugural India AgriFood Startup Investing Report in collaboration with its report partner Omnivore. In this five-year