The Office of the United States Trade Representative (“USTR”) today published a Federal Register notice announcing its final modifications to its Four-Year Statutory Review of U.S. Section 301 tariffs on a range of Chinese-origin goods. While the USTR declined to modify its proposed increase of additional duties on electric vehicles (to 100 percent in 2024), lithium-ion electric vehicle batteries and lithium-ion non-electric vehicle batteries (to 25 percent in 2024 and 2026, respectively), certain critical minerals (to 25 percent in 2024) or battery parts of non-lithium ion batteries (to 25 percent in 2024), changes will be implemented regarding the timing and rates of tariffs for other products, as well as exclusions for certain products. An overview of the most significant updates can be found below:

  • Face masks: Tariff rates for face masks will be increased to 25 percent in 2024 and further to 50 percent in 2026. Additionally, statistical reporting number 6307.90.9870 (face masks of textile, disposable) has been added. Previously, USTR proposed raising the rate of additional duties to 25 percent in 2024.
  • Medical gloves: Tariff rates for medical gloves will be increased to 50 percent in 2025 and to 100 percent in 2026. Previously, USTR proposed raising the rate of additional duties to 25 percent in 2026.
  • Needle syringes: Additional duties for needles and syringes will be increased to 100 percent in 2024. Previously, USTR proposed raising the rate of additional duties to 50 percent in 2024
  • Ship-to-shore cranes: Although the USTR will not be modifying the proposed additional duties of 25 percent in 2024, but will allow for exclusion for cranes that fulfill contracts executed prior to May 14, 2024 and that enter the U.S. prior to May 14, 2026.
  • Machinery under HTSUS Chapters 84 and 85: Five new subheadings have been added to be eligible for temporary exclusions. These subheadings are: 8421.21.00 (Machinery and apparatus for filtering or purifying water); 8421.29.00 (Filtering or purifying machinery and apparatus for liquids, nesoi); 8421.39.01 (Filtering or purifying machinery and apparatus for gases, other than intake air filters or catalytic conv. for internal combustion engines); 8428.70.00 (Industrial robots); and 33 8443.19.30 (Printing machinery, nesoi).
  • Solar manufacturing equipment: USTR has decided against implementing its five proposed exclusions for equipment to manufacture solar modules. However, USTR will be adopting the 14 proposed exclusions for equipment related to solar wafer and cell manufacturing. These exclusions will be effective January 1, 2024 through May 31, 2025

Crowell and Moring, LLP continues to monitor developments in the customs and trade remedies space and their potential impact on business and customers going forward.

Tags: China, Electric Vehicles, Section 301, Solar Cells, Trade Remedies, USTR
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Photo of John Brew John Brew

John Brew is the co-chair of Crowell & Moring’s International Trade Group and a partner in the firm’s Washington, D.C. office. He has extensive experience in import and export trade regulation, and he regularly advises corporations, trade associations, foreign governments, and non-governmental organizations…

John Brew is the co-chair of Crowell & Moring’s International Trade Group and a partner in the firm’s Washington, D.C. office. He has extensive experience in import and export trade regulation, and he regularly advises corporations, trade associations, foreign governments, and non-governmental organizations on matters involving customs administration, enforcement, compliance, litigation, legislation and policy.

John represents clients in proceedings at the administrative and judicial levels, as well as before Congress and the international bureaucracies that handle customs and trade matters. He advises clients on all substantive import regulatory issues handled by U.S. Customs and Border Protection and Immigration and Customs Enforcement, such as classification, valuation, origin, marking, tariff preference programs, other agency regulations, admissibility, import restrictions, quotas, drawback, audits, prior disclosures, penalties, investigations, Importer Self Assessment and Customs-Trade Partnership Against Terrorism programs, importations under bond, the Jones Act, vessel repairs, and foreign trade zone matters.

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Andrew J. Schlegel

Andrew Schlegel is an international trade analyst III in Crowell & Moring’s Washington, D.C. office. He provides practice support to the International Trade Group on import regulatory matters pending before the Office of the U.S. Trade Representative (USTR) and U.S. Customs and Border

…

Andrew Schlegel is an international trade analyst III in Crowell & Moring’s Washington, D.C. office. He provides practice support to the International Trade Group on import regulatory matters pending before the Office of the U.S. Trade Representative (USTR) and U.S. Customs and Border Protection (CBP). He works closely with attorneys developing courses of action for clients impacted by investigations under Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962. Andrew also supports unfair trade investigations, including antidumping (AD) and countervailing duty (CVD) investigations, sunset reviews, and changed circumstance reviews before the Department of Commerce and the International Trade Commission (ITC).

Prior to joining Crowell & Moring, Andrew worked as an intern at SAP’s Government Affairs Business Development Team in Berlin, Germany. There, he analyzed the effects of regulatory changes on SAP business operations and expansion opportunities. Before this, he completed an internship at the International Trade Administration’s Office of Energy and Environmental Industries. While there, he developed the U.S. Energy Trade Dashboard, an interactive data visualization tool for use by professionals and researchers to analyze how energy supply chains have developed.

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