UNITED STATES TRADE REPRESENTATIVE Eackground on the Harmonized Tariff Schedule (HTS) Background • Based on the international Harmonized System • Internationally standardized system of names and numbers to classify traded products • Maintained by the World Customs Organization The Harmonized Tariff Schedule • Primary resource for determining tariff (customs duties) classifications for goods imported into the U.S. • Classifies a good based on its name, use, and/or the material used in its construction and assigns it a classification code number. Classification Number Breakdown • Each digit provides specific data used to produce an increasingly accurate description • Classification numbers typically go out to 10 digits • First 6 digits – harmonized internationally • All remaining digits– Country-specific Tariff and statistical purposes Classification Number Breakdown 0406.20.90.20 Chapter Designation Subheading – Type of good Heading in Chapter Statistical Reporting Number The Tariff Item Classification Number Breakdown • The eight-digit level is where the tariffs are assessed • If there are 10-digit codes below it, they all face the same tariff • The main reason 10-digit codes exist is for statistical purposes, particularly for greater detail in the exclusion process Classification Number Breakdown • The process to create new 10-digit codes is neither quick nor easy • Review and approval required by: • U.S. ITC – make sure new code is appropriate for that part of the tariff schedule • The Census Bureau – confirm that the more detailed stats do not disclose any single company’s business activities • CBP – determine if goods can be uniquely classified into the new code 10-Digit Number Example Ex. Romano Cheese 0406.20.90.20 Chapter Designation: Belongs to Chapter 4 (dairy produce, etc.) Heading within Chapter: Cheese and Curd Subheading indicating type of cheese or curd: grated or powdered cheese of all time The Tariff Item (describing variety of grated/powdered cheese): Other than Cheddar and Cheddar Types The Specification Number (specifying the exact type of grated/powdered cheese other than cheddar): Romano Section 301 Exclusion Process • Exclusions can be granted by exempting the entire 10-digit code or “carving out” a subset of the 10digit code • Section 301 exclusions are granted by the USTR, in coordination with the USITC and CBP • Section 232 (Steel/aluminum) exclusions are granted by the Department of Commerce, in coordination with USITC and CBP • Section 301 exclusions are granted on a product basis; Section 232 exclusions are granted on a company basis Exclusion Process Example • An exclusion could be the whole 10-digit line (i.e. Grated or powdered Romano cheese) OR a subset of the 10-digit line (i.e. Grated Romano cheese) • The subset would avoid excluding “Powdered Romano cheese” Background of Section 301 Investigation and TariffActions Section 301 Investigation • On August 18, 2017, per the President’s instruction, USTR initiated an investigation of China’s practices relating to intellectual property rights, innovation, and technology development • USTR received and considered extensive hearing testimony and other evidence over an investigation that lasted seven months • In March 2018, USTR issued a report finding: • The acts, policies, and practices of China are unreasonable or discriminatory and burden or restrict U.S. commerce • These practices are actionable under Section 301(b) of the Trade Act of 1974 Ways China’s Discriminatory Practices Burden or Restrict U.S. Commerce 1. Unfair Technology Transfer Regime 2. Discriminatory Licensing Restrictions 3. Outbound Investment Regime 4. Unauthorized Intrusions into U.S. Commercial Computer Networks and Cyber-Enabled Theft of Intellectual Property and Sensitive Commercial Information Section 301 Tariff Actions • List 1:$34 Billion Trade Action • List 2:$16 Billion Trade Action • List 3: $200 Billion Trade Action • List 4: $300 Billion Trade Action List 1: $34 Billion Tariff Action April 6, 2018: Publication of First Proposed List ($50 Billion); Comment Period Opens May 11, 2018: Due Date for Written Comments May 15-17, 2018: Hearing for First Proposed List ($50 Billion) June 20, 2018: Publication of $34 Billion List FRN May 22, 2018: Post-Hearing Rebuttal Comments for First Proposed List ($50 Billion) July 11, 2018: Exclusion Request Period for $34 Billion List Begins July 6, 2018: Tariffs on $34 Billion Begin October 30, 2018: $34 Billion List Regulations.Gov Docket Closes October 9, 2018: Exclusion Request Period for $34 Billion List Ends List 2: $16 Billion Tariff Action June 20, 2018: Publication of Second Proposed List ($16 Billion); Comment Period Opens July 24-25, 2018: Hearing for Second Proposed List July 23, 2018: Due Date for Written Comments on Second Proposed List ($16 Billion) August 16, 2018: Publication of $16 Billion List FRN July 31, 2018: Post-Hearing Rebuttal Comments for Second Proposed List September 18, 2018: Exclusion Request Period for $16 Billion Begins August 23, 2018: Tariffs on $16 Billion Begin January 8, 2019: $16 Billion List Regulations.Gov Docket Closes December 18, 2018: Exclusion Request Period for $16 Billion List Ends List 3: $200 Billion Trade Action July 17, 2018: Publication of Proposed $200 Billion List (10%) FRN; Comment Period Opens September 6, 2018: Due Date for Written Comments on Proposed $200 Billion List August 7, 2018: Publication of Proposed $200 Billion List (25%) FRN; Comment Period Extended September 6, 2018: Post-Hearing Rebuttal Comments for Proposed $200 Billion List August 20-27, 2018: Hearing for Proposed $200 Billion List September 24, 2018: Tariffs on $200 Billion Begin at 10% September 21, 2018: Publication of $200 Billion List FRN May 21, 2019: Publication of Draft Exclusion Request Form for $200 Billion Exclusion FRN May 10, 2019: Tariffs on $200 Billion Increase to 25% June 30 – Sep 30, 2019: Exclusion Request Period for $200 Billion Occurs List 4: $300 Billion Trade Action May 17, 2019: Publication of Proposed $300 Billion List; Comment Period Opens June 17, 2019: Due Date for Written Comments on Proposed $300 Billion List June 17-30, 2019: Hearing for Proposed $300 Billion List August 20, 2019: Publication of $300 Billion List FRN (List 4A & List 4B) July 2, 2019: Post-Hearing Rebuttal Comments for Proposed $300 Billion List October 31, 2019: Exclusion Request Period for $300 Billion List 4A begins September 1, 2019: Tariffs on $300 Billion List 4A begin at 15% January 31, 2020: Exclusion Request Period for $300 Billion List 4A Ends December 15, 2019: Tariffs on $300 Billion List 4B begin at 15%* *scheduled UNITED STATES TRADE REPRESENTATIVE USTR Exclusions Portal Exclusions.USTR.gov The USTR Exclusions Portal has 3 main sections: 1. Public Docket 2. Requestor Accounts 3. USTR Internal Processing Public Docket Requests for Exclusion from Section 301 Tariff Action PUBLIC DOCKET LOG IN Public Docket Index and Status of Requests for Exclusion from $200 Billion Tariff Action (List 3] Docket ID: Section 301 Investigation: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation USTR invites interested parties, including trade associations, to submit requests for exclusion from the additional duties underthe September 2013 $200 Billion Tariff Action {List 3). The September 2018 action covers the products classified within the Harmonized Tariff Schedule ofthe United States subheadings set out in Annex A ofthe notice published at 53. FR 4791-1 [September 21, 2018:: as amended and modi?ed by 33 LESS {September 23, 201st To submit an exclusion request, Requestors must first crea:e ar account. Guidance on filing a request for exclusion, submitting a response to a request, or replyingto a response is available on the home page ofthe USTR Exclusions Portal, as well as on the Eli-:- Silion 'rade .eciio?i [-ist 3: webpage on the website. Interested parties do not need to registerfor an account to view a request orfile a response to a request. Responses and replies will be publiclyviewable and should not contain Business Con?dential Information. After a request for exclusion of a particular product is posted on the index below, interested persons will have 14 days to respond to the request. To file a response, first click on the associated ?Exclusion Request to view the public details ofthe request, then clickthe ?Submit a New Response" button. Requestors will have i" days aftera response is posted to file a reply. Ifa response is filed, the original Requestor will receive a notification email. Requestors may file a reply by following the link in the noti?cation email or by logging into their account and viewing the relevant response. Public Docket Stages for Review of Exclusion Requests Filed in Accordance with the Procedures to Consider Requests for Exclusion of Particular Products from the Determination of Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 34 FR 29576 [June 24, 2019} [?Product Exclusion Notice"] To search the Public Docket, first select your search criteria HTSUS Code, Product Name, Organization Na me} in the ?Search by Field" box. Then, type your search content in the "Search Text" box. The docket table will filter as you type. You may also sort the docket by clicking the arrow buttons next to the column titles. Stage Description As provided in the Product Exclusion Notice, interested persons will have 14 clays from the date a request is posted on the docket to respond to the request. If a response is submitted, the Requestor will have Stage 1 Public Comment Period days to reply to the response. At the close of the public comment period, the request proceeds to Stage 2. Initial Substantive Review ofwh eth er the exclusion request should be granted, based on the substantive criteria set out in the Prod uct Exclusion Notice. Requests that pass the Substantive Review will Stage 2 Initial Substantive Review proceed to Stage 3. Stage 3 Administrability Review Request is further reviewed to determine whether an exclusion would be administrable. Requests that pass the Administrability review will proceed to Stage 4. The exclusion has been granted and has been submitted for publication in the Federal Register. The scope ofthe exclusion is governed by the HTSUS language in the Federal Register notice, and not by the Stage 4 Publication in Process product descriptions set out in any particular request for exclusion. Exclusions are effective starting from the September 24, 2012. effective date of the additional duties, and extend for one year after the publication ofthe exclusion determination in the Federal Register. The exclusion has been granted and published in the Federal Register. The scope of the exclusion is governed by the HTSUS language in the Federal Register notice, and not by the product descriptions set Granted out in any particular request for exclusion. Exclusions are effective starting from the September 24, 2013 effective date of the additional duties, and extend for one year after the publication of the exclusion determination in the Federal Register. Denied Letter to the Requestor is posted on Public Docket Search Requests for Exclusion from Seetien 301 Tariff Action Search by FieI-s Chouse? Field 1' Sea e: Test REQUEST 3' CREAIH HALIE FFECIDUET Emit?E CLUE-ES Sea Eagle Boats, Inc Stage 1 0903100060 Sea Eagle 370 Inflatable Kayak Jun 30I 2019 Jul 14,2019 CapAmerica, Inc. Stage 1 0505002060 Wat-en eettbn baseball Jun 30: 2019 Jul 10,2019 Strehl, LLC Stage 1 0710905060 Semi-Trailer Side Skirt Jun 90E 2019 Jul 14,2019 Sunbright LISAJ Ine. Stage 1 9001905001 SeatsJ Parts. Other. Jun 30: 2019 Jul 19-1, 2019 Diggs Inc. Stage 1 T323999000 Revel deg crate, size small, Jun 90E 2019 Jul 14. 2019 Sea Eagle Boats. Ine Stage 1 0903100060 Sea Eagle 330 Inflatable Kayak Jun 30: 2019 Jul 14,2019 Submitter Information USTR Err-simian Request ID 943005 Third Party No Product Description Item Number 4202921030 ProductDes-tn'iption ?i?ETl?s Hopper?? soft coolers are the original lGDEl'i: leakproof, ice-for?days, portable coolers. See attached for additional information. Full Drganization Legal Name Coolers, LLC Third Party Drganiza?nn Name Product Name Hopper"3 soft coolers PHI-duct and Principal soft coolers stand apart for their ridic..lousl3,.r rugged materials and their thermal performance. Built for extreme conditions and tough enough to accompany you on treks through the brush, roclt',r shoreline post-ops, and lunch on the ranch to help protect your contents. Eu omit New F?u lolic Respo nae Public Responses and ICtrganization Replies Michael Korehmar The Leather Specialty Company Relationship to Requestor: Supplier Position: We are a 1'32 year old manufacturer with production operations in both the US and The Dominican Republic. We hat-e produced soft sided coolers in the past and hat-e been sampling same for one of this companies competitors. We have the capacity and capability in both facilities to produce soft sided coolers and have never received a request or inquiry from ?r?edi regarding production. We would welcome the opports nity to this companies needs and do not feel an exclusion is warranted until all US and other duty.r free western hemisphere production options are explored. File a Response to an Exclusion Request Section 3001 Investigation: China?s Acts, Policies, and Practices Related to Technology Tra wafer, Intellectual Property, and Innovation OMB Control Number: 0350-0015 Expiration Date: Dece mber 31, 2019 Foienn??oemon: interested in resp ending to ?ve (diet-tron a?mbrmaz?i are not required to do 50 unless the collection or'ihformefmn dikpfa? a cameo welsh" 0MB con rm! number: I: By submitting this response. ?jnlJ rerlity that the inlorrnalinn prml'ided is mmplele and curred lo lhe best of your knowledge. 0 ='rsl: 33": El?: 3.: to a 3 "as :3nse 3.935! 352:: - 3 '35: rite?: 'Eec: or o?Te :Eezcorse to :'leue 'r clad-e 5-: rf: "re: In: Tl'Iu 6.97.9312 1: :1 PM MEX USTR nol'ebly exclusions New Public Response Received for To A new response has been filed on Brooklyne Parts has until Wi?floiq to replj,r to this response. See below for additional details about this public response. Exclusion Request ID: Responder Nalne: Kristie Clark Responder Organization: this is in}; organisation Position: Support Response: i suppor tthis Link: Office of the United States Trade Representative - Washington. DC 20508 -USA - eicclusionsusingotr Requestor Registration • Interested Parties must register to submit a request • Two types of accounts: • Organizations • Third Parties (Law Firms, Trade Associations, etc.) Procedures for Requests To Exclude Particular Products From the September 2.018 Action Section 301 Investigation: China's?cts, Policies, and Practices Related to TechnologyTransfer, Intellectual Property, and Innovation USTR invites interested parties, including trade associations, to submit requests for exclusion from the additional duties under the September 2015. $200 Billion TariffAction [List The September 2018 action covers the products classified within the Harmonized Tariff Schedule of the United States subheadings set out in Annex?t of the notice published at 53 FF. 4737: [September 21,2018} as amended and modi?ed by-ES 3R #9153 [September 23, 2013]. 1. Requests for Exclusion To submit an exclusion request, click?Submit New Exclusion Request? on the navigation bar of the USTR Exclusions Portal. Fill out the form as directed. You may click the ?Save? button on the bottom ofthe screen to save your progress and return to the form later. Requests that have been started, but not submitted to the United States Trade Representative for processing can be viewed by clicking ?Requests in Progress? on the navigation bar. Once you have completed and submitted a request, you will be able to View the request by clicking the ?Submitted Requests" button on the navigation bar or by going to the Public Docket. Fields on the exclusion request form marked with a red asterisk if) are required ?elds. Fields with a gray notation are for Business Confidential Information and the information entered will not be publicl?,r viewable. Fields with a green (Publid notation will be publiclyviewable. Requestors will be able to upload documents and indicate whether the documents are BCI or public. Requestors will be able to review the public yersion of their submission before the submission is posted. Set out below is a summary of the information to be entered on the exclusion request form. Each Requestor has to provide contact information, including the full legal name ofthe organization making the request, whether the Requestor is a third party [law ?rm, trade association, or customs broker] submitting on behalf of an organization or industry, and the primary point of contact {Requestor and-"or third party submitter}. The Requestor may report whether the Requestor?s business satis?es the Small Business Administration?s size standard fora small business, which are identified by North American Industr',rClassification Systems lCodes and are found in 13 CFR 121.201. With regard to productidentification, any request for exclusion must include thefollowing information: - The 10?digit subheading of the HTSUS applicable to the particular product requested for exclusion. If no lO-digit subheading is available the a-digit subheading does not contain breakouts at the lo-digit leyel}, Requestors should use the a-digit subheading and add Different models classi?ed under different a-digit or lCI-digit subheadings are considered different products and require separate exclusion requests. Product name and a detailed description ofthe producth detailed description of the product includes, but is not limited to, its physical characteristics leg, dimensions, weight, material composition, etc). Requestors may submita range of comparable goods within the product definition set outin an exclusion request. Thus, a product request may include two or more goods with similar product characteristics or attributes. Goods with different SKUs, model numbers, or sizes are not necessarily different products. The products function, application [whether the product is designed to function in orwith a particular machine or other device}, principal use, and any unique physical features that distinguish it from other products within the covered 3?digit HTSUS subheading. Requestors may submit attachments that help distinguish the product lie.g., CBP rulings, photos and specification sheets, and previous import documentation]. Documents submitted to support a Requestor's product description must be made available for public inspection and contain no BCI. USTR will not consider identifythe product using criteria that cannot be made available Iorpublicinspec?on. Requestors must provide their relationship to the product l:Importer, U.S. Prod ucer, Purchaser, Other] and provide speci?c data on the annual quantity and value ofthe lChinese?origin product, domestic product, and third-country product the Requestor purchased, in 2017', 2018, and the ?rstquarterof2019. LOGOUT Useful Links F?rocedtres TueqLe-st fro? sauu Billior Ij_is'. L'st of Procucrs, as Amended and Modified by r33 49153 How :3 *Ia'uigate the Section 30?. Tarif?" Process 520-: B'lio" Trader?ct'on L's: How :3 Descrioe You P'ocuct CBP Sectior 3-3-1 Guicarce HOME PUBLIC SUBMIT EXCLUSION REQUEST REQUESTS IN PROGRESS SUBMITTED REQUESTS. LUGOUT Request an Exclusion from the $200 Billion Tariff Action Section 30?. 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