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CSMS #43762405 - GUIDANCE: Modification of Section 301 Action: Enforcement of U.S. World Trade Organization (WTO) Rights in Large Civil Aircraft Dispute

BACKGROUND

On October 18, 2019, the USTR imposed additional duties on certain products of the European Union (EU) and certain EU member States in this Section 301 investigation to enforce U.S. WTO rights in the Large Civil Aircraft (LCA) Dispute.  See 84 FR 54245.  On December 12, 2019, the USTR announced a review of the Section 301 action and requested public comments.

On February 21, 2020, based on this review, the USTR published a Modification to the LCA Dispute in 84 FR 10204 to revise the action being taken by increasing the rate of additional duties on certain LCA, and by modifying the list of other products of certain current and former EU member States subject to additional 25 percent duties.

On June 26, 2020, the USTR published a notice announcing another review of the action and establishing a docket to receive public comments.  The June 26 notice included a proposal to impose additional duties of up to 100 percent on a new list of products of France, Germany, Spain, and the United Kingdom, covered by 30 tariff subheadings with an approximate annual trade value of $3.1 billion.  See 85 FR 38488 (June 26, 2020) and 85 FR 39661 (July 1, 2020). 

On August 18, 2020, the USTR published a Modification to the LCA Dispute in 85 FR 50866, to modify the list of products subject to additional duties of 25 percent ad valorem, effective on or after 12:01 a.m. September 1, 2020.

The modifications to the Section 301 action announced in 85 FR 50866 are in accordance with the statutory objective, and take into account the public comments, any advice of advisory committees, and the advice of the Section 301 committee.  In accordance with section 306(b)(2)(F) of the Trade Act of 1974 (19 U.S.C. 2416(b)(2)(F)), the revised action includes reciprocal goods of the affected industry.  The annual trade value of the tariff subheadings subject to additional duties under the revised action remains at approximately $7.5 billion, which is consistent with the WTO Arbitrator’s finding on the appropriate level of countermeasures.

GUIDANCE

The modifications set out in Annex 1 to 85 FR 50866 identify the products affected by the revised action, the rate of duty to be assessed, and the current or former EU member States affected.  Annex 2, section 1, contains the unofficial descriptive list of the revisions made by 85 FR 50866.  Annex 2, section 2, contains an unofficial, consolidated description of the action, reflecting the changes in Annex 1. 

As specified in Annex 1, the USTR has determined to alter the composition of the list of non-aircraft products subject to the modifications to the Section 301 action set out in Annex 1.  These modifications are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight savings time on September 1, 2020.  A complete list of products subject to the remedy and assessed duties are set out in FR notice 85 FR 50866.  For ease of reference, the complete list of affected products, countries of origin, Chapter 99 HTSUS numbers, and the associated effective dates and tariff rates is attached to the end of this memorandum.

ADDITIONAL INFORMATION 

With the exception of any product that is eligible for admission under ‘domestic status’ as defined in 19 CFR 146.43, any product listed in Annex 1 that is subject to the additional duty imposed by this determination, and is admitted into a U.S. foreign trade zone on or after 12:01 a.m. eastern daylight time on September 1, 2020, may only be admitted under ‘privileged foreign status’ as defined in 19 CFR 146.41.  Such products will be subject upon entry for consumption to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading.

 
Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer them to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required).  

Related Messages: CSMS# 41898289, 40430843, 40281968