Surviving the Trade Wars: The China 301 and the 232 Exclusion Processes, Classification Reviews, Country of Origin Analysis, or Drawback Can Provide You with Options

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November 20, 2018

Has your supply chain been impacted by the China Section 301 duties, or the aluminum and steel Section 232 duties?  Are you concerned about the next escalation, which will likely capture all remaining Chinese origin products, or may expand to include imported automobiles and parts from various countries?  Are your competitors somehow avoiding these additional tariffs?

Barnes/Richardson can provide you with practical and effective assistance in understanding your options.  Please contact us if you have questions about: 

•  The China 301 Product-Based Exclusion Process

December 18, 2018 is the last day to seek a product-specific exclusion for merchandise classifiable under a tariff number on the second tranche of the China 301 duties.  No exclusion process for goods subject to the third tranche of tariff numbers has been announced yet.  If an exclusion procedure is put in place for the third tranche, then affected importers will have a limited window to seek product-based exclusions for good imported under thos tariff numbers.

• The Aluminum and Steel 232 Product-Based Exclusion Process

Individuals and organizations that use steel in a business activity may petition to have their aluminum or steel products excluded from the Section 232 tariffs.  Currently, no filing deadlines exist for this exclusion process.

• Tariff Classification

Have you re-evaluated your classifications to make sure they are correct?  Sections 232 and 301 additional duties are pegged to specific tariff numbers.  A legally sustainable position in favor of another tariff classification might remove your product from these additional duties.

• Country of Origin and Substantial Transformation

The China 301 duties are assessed only on products that originate in China, and the 232 duties only apply to products that originate in certain designated countries.  Applications of legal principles, such as the substantial transformation test, may result in a change of country of origin to one favorable to the importer.

• Valuation

Entered valuations should be reviewed to ensure that all legal reductions have been taken. 

• Duty Drawback

Duty Drawback is available for goods subject to the China 301 duties, but not to goods subject to the steel or aluminum 232 duties.

• Preserving Your Rights to Possible Refunds
  

Litigation has commenced or is contemplated challenging both the China 301 duties and the aluminum and steel 232 duties.  Now is the time to consider what steps, if necessary, your company must take to position itself for a possible refund of these duties if the court cases are successful.


Working together, we may be able to help alleviate the impact of these duties to your company.  For further information on these topics please contact your Barnes/Richardson lawyer, or one of the contacts below:


Rick Van Arnam                                        
NYC Office
(212) 725-0200 ex. 126
rvanarnam@barnesrichardson.com

Brian Walsh                                       
Chicago Office
(312) 297-9552
bwalsh@barnesrichardson.com

Matt McGrath
Washington, DC Office
(202) 772-5580                                           
mmcgrath@barnesrichardson.com