USTR and the White House Announce the Increase of Section 301 Tariffs on Certain Products, a Limited Exclusion Process, and the Increase of CBP Enforcement

Today, the White House and the Office of the U.S. Trade Representative (USTR) announced the results of the USTR’s statutory 4-year review of the tariff actions in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (the China tariffs imposed under former President Trump).  As had been widely expected, the USTR does not propose to reduce or eliminate any of the Section 301 tariffs on Chinese-origin products currently in place; rather,  the USTR is proposing Section 301 tariff increases  across strategic sectors  including medical products, steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, and ship-to-shore cranes. Many of the sectors are targeted by China for dominance or are sectors where the U.S. has recently made significant investments.  Some of the proposed increases will double the currently applicable Section 301 tariff rate or more; for example, tariffs on syringes and needles will rise from 0% to 50%, tariffs on certain respirators and face masks will increase from 0 – 7.5% to 25%, and tariffs on rubber medical and surgical gloves will rise from 7.5% to 25%.

 

PRODUCTS SUBJECT TO INCREASE TARIFFS

 

The USTR is proposing to add or increase Section 301 tariffs to these sectors:

Sector/Commodity Increase Rate Implementation Date
Battery parts (non-lithium-ion batteries) Increase rate to 25% 2024
Electric vehicles   Increase rate to 100% 2024
Facemasks Increase rate to 25% 2024
Lithium-ion electrical vehicle batteries Increase rate to 25% 2024
Lithium-ion non-electrical vehicle batteries Increase rate to 25% 2026
Medical gloves Increase rate to 25% 2026
Natural graphite Increase rate to 25% 2026
Other critical minerals Increase rate to 25% 2024
Permanent magnets Increase rate to 25% 2026
Semiconductors Increase rate to 50% 2025
Ship to shore cranes Increase rate to 25% 2024
Solar cells (whether or not assembled into modules) Increase rate to 50% 2024
Steel and aluminum products Increase rate to 25% 2024
Syringes and needles Increase rate to 50% 2024

The USTR will issue a Federal Register notice next week, seeking public comment on the proposed Section 301 tariff modifications and a limited renewed tariff exclusion process (discussed below).

 

A RENEWED EXCLUSION PROCESS – BUT ONLY FOR MACHINERY USED IN DOMESTIC MANUFACTURING

While importers had pushed for the USTR to restart the now-defunct process which allowed importers to apply for exclusions from any of the Section 301 tariffs, the USTR is proposing much more limited relief: as outlined more fully in the Report which accompanied today’s announcement, in addition to increasing Section 301 tariffs on specified products, the USTR will establish a new process under which importers may apply for exclusions from Section 301 tariffs on other products,  i.e. on machinery used in domestic manufacturing. President Biden has directed it to prioritize exclusions for certain solar manufacturing equipment.

 

The proposed 19 temporary exclusions

USTR is proposing 19 temporary exclusions for certain solar manufacturing equipment. These exclusions will support investment in U.S. solar manufacturing. The following are the 19 proposed temporary exclusions. The products in these categories will be automatically excluded and separate from the comment exclusion request process. More clarity is expected to be provided by the USTR in next week’s Federal Notice:

 

1                  Silicon growth furnaces, including Czochralski crystal growth furnaces, designed for growing monocrystalline silicon ingots (boules) of a mass exceeding 700 kg, for use in solar wafer manufacturing (described in statistical reporting number 8486.10.0000).
  2   Band saws designed for cutting or slicing cylindrical monocrystalline silicon ingots (boules) of a mass exceeding 700 kg into square or rectangular ingots (boules), for use in solar wafer manufacturing (described in statistical reporting number 8486.10.0000).
 3  Machines designed to align and adhere monocrystalline silicon ingots (boules) of a mass exceeding 400 kg to plastic support boards on metal mounting plates to provide support during diamond wire sawing, for use in solar wafer manufacturing (described in statistical reporting number 8486.10.0000).
 4 Diamond wire saws designed for cutting or slicing silicon ingots (boules) of a mass exceeding 400 kg into solar wafers of a thickness not exceeding 200 micrometers (described in statistical reporting number 8486.10.0000).
 5  Wire guide roller machines, presented with diamond wire saws designed for slicing monocrystalline silicon ingots (boules) of a mass exceeding 400 kg into solar wafers of a thickness not exceeding 200 micrometers, all of the foregoing for use in solar wafer manufacturing (described in statistical reporting number 8486.10.0000).
 6 Coolant fluid recycling machines, presented with diamond wire saws designed for slicing monocrystalline silicon ingots (boules) of a mass exceeding 400 kg into solar wafers of a thickness not exceeding 200 micrometers, all of the foregoing for use in solar wafer manufacturing (described in statistical reporting number 8486.10.0000).
 7 Degumming machines designed to remove adhesives from solar wafers (described in statistical reporting number 8486.10.0000).
 8  Texturing and cleaning machines designed to repair, clean, and texture the solar wafer substrate, whether or not containing automation equipment for transferring solar wafers from one process station to the next, for use in solar wafer manufacturing (described in statistical reporting number 8486.20.0000).
 9 Thermal diffusion quartz-tube furnaces and boat loading machines, designed to diffuse dopant impurities into square or rectangular silicon wafers, for use in solar cell manufacturing (described in statistical reporting number 8486.20.0000).
 10 Plasma enhanced chemical vapor deposition machines designed to deposit amorphous or nanocrystalline layers on one or both surfaces of a solar wafer, whether or not containing automation equipment for transferring solar wafers from one process station to the next, for use in solar cell manufacturing (described in statistical reporting number 8486.20.0000).
 11 Physical vapor deposition (PVD) machines, designed to deposit a thin film of transparent conducting oxide on one or both surfaces of a solar wafer, whether or not containing automation equipment for transferring solar wafers from one process station to the next, for use in solar cell manufacturing (described in statistical reporting number 8486.20.0000).
 12 Screen printing line machines, including sintering furnaces for printing conducting contacts on both surfaces of a solar wafer, whether or not containing automation equipment for transferring solar wafers from one process station to the next, and whether or not containing equipment for solar cell testing, for use in solar cell manufacturing (described in statistical reporting number 8486.20.0000).
 13 Cell interconnection machines designed to electrically solder solar cells to each other to form a complete electrical circuit, for use in solar module manufacturing (described in statistical reporting number 8486.20.0000).
 14 Module encapsulant preparation machines designed for encapsulant cutting and placement, butyl dispensing equipment, and equipment for the transport of encapsulant materials, all the foregoing for use in solar module manufacturing (described in statistical reporting number 8486.20.0000).
 15 Machines designed to laminate an interconnected cell string and to attach junction boxes, all the foregoing for use in solar module manufacturing (described in statistical reporting number 8486.20.0000).
 16 Frame attachment machines designed for attaching metal frames to the perimeter or rear surface of solar modules (described in statistical reporting number 8486.20.0000).
 17 Machines designed for transporting polysilicon material to growth furnaces and machines designed for transporting monocrystalline ingots (boules) and wafers throughout the solar wafer manufacturing process, including machines for loading or unloading solar wafers during the diamond wire slicing process (described in statistical reporting number 8486.40.0030).
 18 Machines designed for lifting, handling, loading, or unloading of solar wafers of a thickness not exceeding 200 micrometers, for use in solar wafer manufacturing (described in statistical reporting number 8486.40.0030).
 19 Machines designed for lifting, handling, loading, or unloading in the assembly of solar modules (described in statistical reporting number 8486.40.0030).

 

Products Likely Eligible for Exclusion Process

In addition to these 19 solar-related machines, the USTR has proposed the following list of 8-digit tariff lines covering machinery used in domestic manufacturing for inclusion in the new exclusion application process: 

 

HTSUS Subheading Product Description
8417.10.00 Furnaces and ovens for the roasting, melting or other heat treatment of ores, pyrites or of metals
8417.80.00 Industrial or laboratory furnaces and ovens nesoi (not elsewhere specified or included), including incinerators, nonelectric
8418.69.00 Refrigerating or freezing equipment nesoi
8419.33.00 Lyophilization apparatus; freeze drying units; spray dryers, for agricultural products
8419.33.00 Lyophilization apparatus; freeze drying units; spray dryers, other than for agricultural products, nesoi
8419.34.00 Other dryers for agricultural products (other than lyophilization apparatus; freeze drying units; spray dryers)
8419.35.00 Dryers for wood
8419.35.00 Dryers for paper pulp, paper or paperboard
8419.39.00 Other dryers other than of a kind used for domestic purposes, nesoi (other than lyophilization apparatus; freeze drying units; spray dryers)
8419.40.00 Distilling or rectifying plant, not used for domestic purposes
8419.50.00 Brazed aluminum plate-fin heat exchangers
8419.50.00 Heat exchange units, nesoi
8419.60.00 Machinery for liquefying air or gas containing brazed aluminum plate-fin heat exchangers
8419.60.00 Machinery for liquefying air or gas, nesoi
8419.89.00 Machinery and equipment for the treatment of materials (by a process which changes temperatures), for making paper pulp, paper or paperboard
8419.89.00 Industrial machinery, plant or equip. for the treat. of mat., involving a change in temp., for molten-salt-cooled acrylic acid reactors
8419.89.00 Industrial machinery, plant or equipment for the treatment of materials, by process involving a change in temperature, nesoi
8420.10.00 Textile calendering or rolling machines
8420.10.00 Calendering or similar rolling machines for making paper pulp, paper or paperboard
8420.10.00 Calendering or other rolling machines, other than for metals or glass, nesoi
8420.91.00 Cylinders for textile calendering or rolling machines
8420.91.00 Cylinders for paper pulp, paper or paperboard calendering or rolling machines
8420.91.00 Cylinders for calendering and similar rolling machines, nesoi
8422.19.00 Dishwashing machines other than of the household type
8422.20.00 Machinery for cleaning or drying bottles or other containers
8422.30.00 Can-sealing machines
8422.30.00 Machinery for filling, closing, sealing, capsuling or labeling bottles, cans, boxes or other containers; machinery for aerating beverages; nesoi
8422.40.00 Machinery for packing or wrapping pipe tobacco, candy and cigarette packages; combination candy cutting and wrapping machines
8422.40.00 Packing or wrapping machinery, nesoi
8429.11.00 Self-propelled bulldozers and angledozers, for track laying
8429.19.00 Self-propelled bulldozers and angledozers other than track laying
8429.20.00 Self-propelled graders and levelers
8429.30.00 Self-propelled scrapers
8429.40.00 Self-propelled tamping machines and road rollers
8429.51.00 Self-propelled front-end shovel loaders, wheel-type
8429.51.00 Self-propelled front-end shovel loaders, other than wheel-type
8429.52.00 Self-propelled backhoes, shovels, clamshells and draglines with a 360 degree revolving superstructure
8429.52.00 Self-propelled machinery with a 360 degree revolving superstructure, other than backhoes, shovels, clamshells and draglines
8429.59.00 Self-propelled backhoes, shovels, clamshells and draglines not with a 360 degree revolving superstructure
8429.59.00 Self-propelled machinery not with a 360 degree revolving superstructure, other than backhoes, shovels, clamshells and draglines
8430.10.00 Pile-drivers and pile-extractors
8430.31.00 Self-propelled coal or rock cutters and tunneling machinery
8430.39.00 Coal or rock cutters and tunneling machinery, not self-propelled
8430.41.00 Self-propelled boring or sinking machinery
8430.49.00 Offshore oil and natural gas drilling and production platforms
8430.49.00 Boring or sinking machinery, not self-propelled, nesoi
8430.50.00 Self-propelled peat excavators
8430.50.00 Self-propelled machinery for working earth, minerals or ores, nesoi
8430.61.00 Tamping or compacting machinery, not self-propelled
8430.69.00 Machinery for working earth, minerals or ores, not self-propelled, nesoi
8432.10.00 Plows for soil preparation or cultivation
8432.21.00 Disc harrows for soil preparation or cultivation
8432.29.00 Harrows (other than disc), scarifiers, cultivators, weeders and hoes for soil preparation or cultivation
8432.31.00 No-till direct seeders, planters and transplanters
8432.39.00 Seeders, planters and transplanters, nesoi
8432.41.00 Manure spreaders
8432.42.00 Fertilizer distributors
8432.80.00 Agricultural, horticultural or forestry machinery for soil preparation or cultivation, nesoi; lawn or sports ground rollers
8433.30.00 Haymaking machinery other than mowers
8433.40.00 Straw or fodder balers, including pick-up balers
8433.51.00 Combine harvester-threshers
8433.52.00 Threshing machinery other than combine harvester-threshers
8433.53.00 Root or tuber harvesting machines
8433.59.00 Harvesting machinery or threshing machinery, nesoi
8433.60.00 Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce
8435.10.00 Presses, crushers and similar machinery used in the manufacture of wine, cider, fruit juices or similar beverages
8436.10.00 Machinery for preparing animal feeds
8436.21.00 Poultry incubators and brooders
8436.29.00 Poultry-keeping machinery
8436.80.00 Agricultural, horticultural, forestry or bee-keeping machinery, nesoi
8437.10.00 Machines for cleaning, sorting or grading seed, grain or dried leguminous vegetables
8437.80.00 Machinery used in the milling industry or for the working of cereals or dried leguminous vegetables, other than farm type machinery
8438.10.00 Bakery machinery and machinery for the manufacture of macaroni, spaghetti or similar products, nesoi
8438.20.00 Machinery for the manufacture of confectionery, cocoa or chocolate, nesoi
8438.30.00 Machinery for sugar manufacture, nesoi
8438.40.00 Brewery machinery, nesoi
8438.50.00 Machinery for the preparation of meat or poultry, nesoi
8438.60.00 Machinery for the preparation of fruits, nuts or vegetables, nesoi
8438.80.00 Machinery for the industrial preparation or manufacture of food or drink, nesoi
8439.10.00 Machinery for making pulp of fibrous cellulosic material
8439.20.00 Machinery for making paper or paperboard
8439.30.00 Machinery for finishing paper or paperboard
8441.10.00 Cutting machines of all kinds used for making up paper pulp, paper or paperboard
8441.20.00 Machines for making bags, sacks or envelopes of paper pulp, paper or paperboard
8441.30.00 Machines for making cartons, boxes, cases, tubes, drums or similar containers, other than by molding, of paper pulp, paper or paperboard
8441.40.00 Machines for molding articles in paper pulp, paper or paperboard
8441.80.00 Machinery for making up paper pulp, paper or paperboard, nesoi
8442.30.00 Machinery, apparatus and equipment of heading 8442
8442.50.00 Printing plates
8442.50.00 Printing type, blocks, cylinders and other printing components; blocks, cylinders and lithographic stones, prepared for printing purposes
8444.00.00 Machines for extruding, drawing, texturing or cutting man-made textile materials
8445.11.00 Carding machines for preparing textile fibers
8445.12.00 Combing machines for preparing textile fibers
8445.13.00 Drawing or roving machines for preparing textile fibers
8445.19.00 Machines for preparing textile fibers, nesoi
8445.20.00 Textile spinning machines
8445.30.00 Textile doubling or twisting machines
8445.40.00 Textile winding (including weft-winding) or reeling machines
8445.90.00 Machinery for producing textile yarns nesoi; machines for preparing textile yarns for use on machines of heading 8446 or 8447
8446.10.00 Weaving machines (looms) for weaving fabrics of a width not exceeding 30 cm
8446.21.00 Shuttle type power looms for weaving fabrics of a width exceeding 30 cm, but not exceeding 4.9 m
8446.29.00 Weaving machines for weaving fabrics of a width exceeding 30 cm, shuttle type, nesoi
8446.30.00 Shuttleless type power looms, for weaving fabrics of a width exceeding 4.9 m, nesoi
8446.30.00 Shuttleless type weaving machines (looms), for weaving fabrics of a width exceeding 30 cm, nesoi
8447.11.00 Circular knitting machines with cylinder diameter not exceeding 165 mm, for knitting hosiery
8447.11.00 Circular knitting machines with cylinder diameter not exceeding 165 mm, other than for knitting hosiery
8447.12.00 Circular knitting machines with cylinder diameter exceeding 165 mm, for knitting hosiery
8447.12.00 Circular knitting machines with cylinder diameter exceeding 165 mm, other than for knitting hosiery
8447.20.00 V-bed flat knitting machines, power driven, over 50.8 mm in width
8447.20.00 V-bed flat knitting machines, nesoi
8447.20.00 Warp knitting machines
8447.20.00 Flat knitting machines, other than V-bed or warp; stitch-bonding machines
8447.90.00 Braiding and lace-braiding machines
8447.90.00 Embroidery machines
8447.90.00 Knitting machines other than circular or flat knitting; machines for making gimped yarn, tulle, trimmings or net; machines for tufting
8448.11.00 Dobbies and Jacquards, card reducing, copying, punching or assembling machines for use with machines of heading 8444, 8445, 8446 or 8447
8448.19.00 Auxiliary machinery for machines of heading 8444, 8445, 8446 or 8447, nesoi
8448.31.00 Card clothing as parts and accessories of machines of heading 8445 or of their auxiliary machinery
8448.33.00 Spindles, spindle flyers, spinning rings and ring travellers of machines of heading 8445 or of their auxiliary machines
8448.42.00 Reeds for looms, healds and heald-frames of weaving machines (looms) or their auxiliary machinery
8448.51.00 Latch needles for knitting machines
8448.51.00 Spring-beard needles for knitting machines
8448.51.00 Needles for knitting machines other than latch needles or spring-beard needles
8448.51.00 Sinkers, needles and other articles used to form stitches, nesoi, for machines of heading 8447
8449.00.00 Finishing machinery for felt or nonwovens and parts thereof
8449.00.00 Machinery for making felt hats; blocks for making hats; parts thereof
8451.29.00 Drying machines for yarns, fabrics or made up textile articles, each of a dry linen capacity exceeding 10 kg
8451.30.00 Ironing machines and presses (including fusing presses) for textile fabrics or made up textile articles
8451.40.00 Washing, bleaching or dyeing machines for textile yarns, fabrics or made up textile articles
8451.50.00 Machines for reeling, unreeling, folding, cutting or pinking textile fabrics
8451.80.00 Machinery for the handling of textile yarns, fabrics or made up textile articles, nesoi
8452.21.00 Sewing machines specially designed to join footwear soles to uppers, automatic
8452.21.00 Sewing machines, automatic, nesoi
8452.29.00 Sewing machines, other than automatic, specially designed to join footwear soles to uppers
8452.29.00 Sewing machines, other than automatic, nesoi
8453.10.00 Machinery for preparing, tanning or working hides, skins or leather
8453.20.00 Machinery for making or repairing footwear
8453.80.00 Machinery, nesoi, for making or repairing articles of hides, skins or leather
8454.10.00 Converters of a kind used in metallurgy or in metal foundries
8454.20.00 Ingot molds and ladles, of a kind used in metallurgy or in metal foundries
8454.30.00 Casting machines, of a kind used in metallurgy or in metal foundries
8455.10.00 Metal-rolling tube mills
8455.21.00 Metal-rolling mills, other than tube mills, hot or combination hot and cold
8455.22.00 Metal-rolling mills, other than tube mills, cold
8455.30.00 Rolls for metal-rolling mills
8456.11.00 Machine tools operated by laser, for working metal
8456.11.00 Machine tools operated by laser, of a kind used solely or principally for manufacture of printed circuits
8456.11.00 Machine tools operated by laser, nesoi
8456.12.00 Machine tools operated by light or photon beam processes, for working metal
8456.12.00 Machine tools operated by light or photon beam processes, of a kind used solely or principally for the manufacture of printed circuits
8456.12.00 Machine tools operated by light or photon beam processes, nesoi
8456.20.00 Machine tools operated by ultrasonic processes, for working metal
8456.20.00 Machine tools operated by ultrasonic processes, other than for working metal
8456.30.00 Machine tools operated by electro-discharge processes, for working metal
8456.30.00 Machine tools operated by electro-discharge processes, other than for working metal
8456.40.00 Machine tools operated by plasma arc process, for working metal
8456.40.00 Machine tools operated by plasma arc process, other than for working metal
8456.50.00 Water-jet cutting machines
8456.90.00 Machine tools operated by electro-chemical or ionic-beam processes, for working metal
8456.90.00 Machine tools operated by electro-chemical or ionic-beam processes, other than for working metal
8457.10.00 Machining centers for working metal
8457.20.00 Unit construction machines (single station), for working metal
8457.30.00 Multistation transfer machines for working metal
8458.11.00 Horizontal lathes (including turning centers) for removing metal, numerically controlled
8458.19.00 Horizontal lathes (including turning centers) for removing metal, other than numerically controlled
8458.91.00 Vertical turret lathes (including turning centers) for removing metal, numerically controlled
8458.91.00 Lathes (including turning centers), other than horizontal or vertical turret lathes, for removing metal, numerically controlled
8458.99.00 Vertical turret lathes (including turning centers) for removing metal, other than numerically controlled
8458.99.00 Lathes (including turning centers), other than horizontal or vertical turret lathes, for removing metal, other than numerically controlled
8459.10.00 Way-type unit head machines for drilling, boring, milling, threading or tapping by removing metal, other than lathes of heading 8458
8459.21.00 Drilling machines, numerically controlled, nesoi
8459.29.00 Drilling machines, other than numerically controlled, nesoi
8459.31.00 Boring-milling machines, numerically controlled, nesoi
8459.39.00 Boring-milling machines, other than numerically controlled, nesoi
8459.41.00 Boring machines, numerically controlled, nesoi
8459.49.00 Boring machines, not numerically controlled, nesoi
8459.51.00 Milling machines, knee type, numerically controlled, nesoi
8459.59.00 Milling machines, knee type, other than numerically controlled, nesoi
8459.61.00 Milling machines, other than knee type, numerically controlled, nesoi
8459.69.00 Milling machines, other than knee type, other than numerically controlled, nesoi
8459.70.00 Other threading or tapping machines, numerically controlled
8459.70.00 Other threading or tapping machines nesoi
8460.12.00 Flat-surface grinding machines, numerically controlled
8460.19.00 Flat-surface grinding machines, not numerically controlled
8460.22.00 Centerless grinding machines, numerically controlled
8460.23.00 Other cylindrical grinding machines, numerically controlled
8460.24.00 Other grinding machines, numerically controlled
8460.29.00 Other grinding machines, other than numerically controlled
8460.31.00 Sharpening (tool or cutter grinding) machines for working metal or cermets, numerically controlled
8460.39.00 Sharpening (tool or cutter grinding) machines for working metal or cermets, other than numerically controlled
8460.40.00 Honing or lapping machines for working metal or cermets, numerically controlled
8460.40.00 Honing or lapping machines for working metal or cermets, other than numerically controlled
8460.90.00 Other machine tools for deburring, polishing or otherwise finishing metal or cermets, nesoi, numerically controlled
8460.90.00 Other machine tools for deburring, polishing or otherwise finishing metal or cermets, nesoi, other than numerically controlled
8461.20.00 Shaping or slotting machines for working by removing metal or cermets, numerically controlled
8461.20.00 Shaping or slotting machines for working by removing metal or cermets, other than numerically controlled
8461.30.00 Broaching machines for working by removing metal or cermets, numerically controlled
8461.30.00 Broaching machines for working by removing metal or cermets, other than numerically controlled
8461.40.00 Gear cutting machines for working by removing metal or cermets
8461.40.00 Gear grinding or finishing machines for working by removing metal or cermets
8461.50.00 Sawing or cutting-off machines for working by removing metal or cermets, numerically controlled
8461.50.00 Sawing or cutting-off machines for working by removing metal or cermets, other than numerically controlled
8461.90.00 Machine-tools for working by removing metal or cermets, nesoi, numerically controlled
8461.90.00 Machine-tools for working by removing metal or cermets, nesoi, other than numerically controlled
8462.11.00 Hot forming machines for forging, die forging (including presses) and hot hammers, closed die forging machines
8462.19.00 Other hot forming machines for forging, die forging (including presses) and hot hammers (other than closed die forging machines), nesoi
8462.22.00 Profile forming machines
8462.23.00 Numerically controlled press brakes
8462.24.00 Numerically controlled panel benders
8462.25.00 Numerically controlled roll forming machines
8462.26.00 Other numerically controlled bending, folding, straightening or flattening machines (o/t press brakes, panel benders, roll forming machines)
8462.29.00 Other bending folding straightening or flattening machines (other than numerically controlled or profile forming machines), nesoi
8462.32.00 Numerically controlled sitting lines and cut-to-length lines
8462.32.00 Sitting lines and cut-to-length lines (other than numerically controlled), nesoi
8462.33.00 Numerically controlled shearing machines
8462.39.00 Shearing machines (other than numerically controlled), nesoi
8462.42.00 Numerically controlled punching, notching or nibbling machines (excluding presses) for flat products
8462.49.00 Other punching, notching or nibbling machines (excluding presses) for flat products, other than numerically controlled
8462.51.00 Numerically controlled machines for working tube, pipe, hollow section and bar (excluding presses)
8462.59.00 Other machines for working tube, pipe, hollow section and bar (excluding presses), other than numerically controlled
8462.61.00 Hydraulic presses, numerically controlled
8462.61.00 Hydraulic presses, not numerically controlled
8462.62.00 Numerically controlled mechanical cold metal working presses
8462.62.00 Other mechanical cold metal working presses, other than numerically controlled
8462.63.00 Numerically controlled cold metal working servo-presses
8462.63.00 Other cold metal working servo-presses, other than numerically controlled
8462.69.00 Numerically controlled other cold metal working presses, nesoi
8462.69.00 Other cold metal working presses, other than numerically controlled, nesoi
8462.90.00 Other numerically controlled machines tools for working metal, nesoi
8462.90.00 Other machines tools for working metal, other than numerically controlled, nesoi
8463.10.00 Draw-benches for bars, tubes, profiles, wire or the like, for working metal or cermets, without removing material
8463.20.00 Thread rolling machines for working metal or cermets, without removing material
8463.30.00 Machines for working wire of metal or cermets, without removing material
8463.90.00 Machine tools for working metal or cermets, without removing material, nesoi
8464.10.00 Sawing machines for working stone, ceramics, concrete, asbestos-cement or like mineral materials or for cold working glass
8464.20.00 Grinding or polishing machines for working stone, ceramics, concrete, asbestos-cement or like mineral materials, or glass, nesoi
8464.90.00 Machine tools for working stone, ceramics, concrete, asbestos-cement or like mineral materials or for cold working glass, nesoi
8465.10.00 Machines for working certain hard materials which can carry out different types of machining operations w/o tool change between operations
8465.20.00 Machine centers for sawing, planing, milling, molding, grinding, sanding, polishing, drilling or mortising
8465.20.00 Machine centers for bending or assembling
8465.20.00 Machine centers, nesoi
8465.91.00 Sawing machines for working wood, cork, bone, hard rubber, hard plastics or similar hard materials
8465.92.00 Planing, milling or molding (by cutting) machines for working wood, cork, bone, hard rubber, hard plastics or similar hard materials
8465.93.00 Grinding, sanding or polishing machines for working wood, cork, bone, hard rubber, hard plastics or similar hard materials
8465.94.00 Bending or assembling machines for working wood, cork, bone hard rubber, hard plastics or similar hard materials
8465.95.00 Drilling or mortising machines for working wood, cork, bone, hard rubber, hard plastics or similar hard materials
8465.96.00 Splitting, slicing or paring machines for working wood, cork, bone, hard rubber, hard plastics or similar hard materials
8465.99.00 Machine tools for working wood, cork, bone, hard rubber, hard plastics and similar hard materials, nesoi
8468.20.00 Gas-operated machinery, apparatus and appliances, hand-directed or -controlled, used for soldering, brazing, welding or tempering, nesoi
8468.20.00 Gas-operated machinery, apparatus and appliances, not hand-directed or -controlled, used for soldering, brazing, welding or tempering, nesoi
8468.80.00 Machinery and apparatus, hand-directed or -controlled, used for soldering, brazing or welding, not gas-operated
8468.80.00 Machinery and apparatus other than hand-directed or -controlled, used for soldering, brazing or welding, not gas-operated
8474.10.00 Sorting, screening, separating or washing machines for earth, stones, ores or other mineral substances in solid form
8474.20.00 Crushing or grinding machines for earth, stones, ores or other mineral substances
8474.31.00 Concrete or mortar mixers
8474.32.00 Machines for mixing mineral substances with bitumen
8474.39.00 Mixing or kneading machines for earth, stones, ores or other mineral substances, nesoi
8474.80.00 Machinery for agglomerating, shaping or molding solid mineral fuels, or other mineral products; machines for forming sand foundry molds
8475.10.00 Machines for assembling electric or electronic lamps, tubes or flashbulbs, in glass envelopes
8475.21.00 Machines for making glass optical fibers and preforms thereof
8475.29.00 Machines for manufacturing or hot working glass or glassware, nesoi
8477.10.00 Injection-molding machines for manufacturing shoes of rubber or plastics
8477.10.00 Injection-molding machines for use in the manufacture of video laser discs
8477.10.00 Injection-molding machines of a type used for working or manufacturing products from rubber or plastics, nesoi
8477.20.00 Extruders for working rubber or plastics or for the manufacture of products from these materials, nesoi
8477.30.00 Blow-molding machines for working rubber or plastics or for the manufacture of products from these materials
8477.40.00 Vacuum-molding and other thermoforming machines for working rubber or plastics or for manufacture of products from these materials, nesoi
8477.51.00 Machinery for molding or retreading pneumatic tires or for molding or otherwise forming inner tubes
8477.59.00 Machinery for molding or otherwise forming rubber or plastics other than for molding or retreading pneumatic tires, nesoi
8477.80.00 Machinery for working rubber or plastics or for the manufacture of products from these materials, nesoi
8478.10.00 Machinery for preparing or making up tobacco, nesoi
8479.10.00 Machinery for public works, building or the like, nesoi
8479.20.00 Machinery for the extraction or preparation of animal or fixed vegetable fats or oils, nesoi
8479.30.00 Presses for making particle board or fiber building board of wood or other ligneous materials, and mach. for treat. wood or cork, nesoi
8479.40.00 Rope- or cable-making machines nesoi
8479.50.00 Industrial robots, nesoi
8479.81.00 Machines and mechanical appliances for treating metal, including electric wire coil-winders, nesoi
8479.82.00 Machines for mixing, kneading, crushing, grinding, screening, sifting, homogenizing, emulsifying or stirring, nesoi
8479.83.00 Cold isostatic presses, nesoi
8479.89.00 Machines for the manufacture of optical media
8479.89.00 Automated electronic component placement machines for making printed circuit assemblies
8479.89.00 Other machines and mechanical appliances having individual functions, not specified or included elsewhere in chapter 84, nesoi
8486.10.00 Machines and apparatus for the manufacture of boules or wafers
8486.20.00 Machines and apparatus for the manufacture of semiconductor devices or electronic integrated circuits
8486.30.00 Machines and apparatus for the manufacture of flat panel displays
8486.40.00 Machines and apparatus for the manufacture of masks and reticles and for the assembly of electronic integrated circuits
8514.11.00 Hot isostatic presses
8514.19.00 Other resistance heated industrial or laboratory furnaces and ovens, other than hot isostatic presses
8514.20.00 Industrial or laboratory microwave ovens for making hot drinks or for cooking or heating food
8514.20.00 Industrial or laboratory microwave ovens, nesoi
8514.20.00 Industrial or laboratory furnaces and ovens (other than microwave) functioning by induction or dielectric loss
8514.31.00 Electron beam furnaces for making printed circuits or printed circuit assemblies
8514.31.00 Electron beam furnaces, other than for making printed circuits or printed circuit assemblies
8514.32.00 Plasma and vacuum arc furnaces for making printed circuits or printed circuit assemblies
8514.32.00 Plasma and vacuum arc furnaces, other than for making printed circuits or printed circuit assemblies
8514.39.00 Other industrial furnaces and ovens for making printed circuits or printed circuit assemblies
8514.39.00 Other industrial or laboratory electric industrial or laboratory furnaces and ovens nesoi
8514.40.00 Industrial or laboratory induction or dielectric heating equipment nesoi
8515.11.00 Electric soldering irons and guns
8515.19.00 Electric brazing or soldering machines and apparatus, other than soldering irons and guns
8515.21.00 Electric machines and apparatus for resistance welding of metal, fully or partly automatic
8515.29.00 Electric machines and apparatus for resistance welding of metal, other than fully or partly automatic
8515.31.00 Electric machines and apparatus for arc (including plasma arc) welding of metals, fully or partly automatic
8515.39.00 Electric machines and apparatus for arc (including plasma arc) welding of metals, other than fully or partly automatic
8515.80.00 Electric welding apparatus nesoi,and electric machines and apparatus for hot spraying metals or sintered metal carbides
8543.30.00 Electrical machines and apparatus for electroplating, electrolysis, or electrophoresis for making printed circuits
8543.30.00 Other electrical machines and apparatus for electroplating, electrolysis, or electrophoresis
8543.70.00 Physical vapor deposition apparatus, nesoi
8543.70.00 Electrical machines and apparatus nesoi, designed for connection to telegraphic or telephonic apparatus, instruments or networks
8543.70.00 Electric luminescent lamps
8543.70.00 Plasma cleaner machines that remove organic contaminants from electron microscopy specimens and holders
8543.70.00 Other electrical machines and apparatus, having individual functions, nesoi

 

CBP’S INCREASED ENFORCEMENT

 

Finally, in addition to the proposed increases in Section 301 tariffs and renewed tariff exclusion process outlined above,  the USTR’s Report also recommends allocating additional funds to CBP for even greater Section 301 enforcement than the heightened scrutiny that CBP is already giving this area. USTR stressed that there is evidence of companies intentionally evading such duties, and the Government has been actively pursuing such evasion; for example, at the end of 2023, the DOJ announced settlements in three cases that alleged evasion of Section 301 duties. See King Kong Tolls Settles Claims of Customs Fraud for $1.9 Million, DOJ, Nov. 29, 2023; Dallas Importer and Two Chinese Companies to Pay $2.5 Million to Resolve Allegation of Underpaying Customs Duties, DOJ, Dec. 5, 2023; Importer Agrees to Pay $798,334 to Resolve Allegations of Underpayment of Customs Duties, DOJ, Dec. 13, 2023.

 

Given the likely increase in enforcement actions in this area, we recommend that importers perform due diligence reviews for products that could be of Chinese origin but claimed to be manufactured in third countries. This will be especially critical where the supply chain for a product was formerly based in China, but where the manufacturer has now ostensibly moved some or all production to third countries to avoid 301 duties. Due diligence involves verifying the existence of the third-country factory, verifying that machinery for the production of the goods is actually in place, raw material purchases are sufficient to support the production of the goods, the existence of skilled employees, etc. Our customs and trade team regularly assists importers navigate Section 301 tariffs and submit exclusion requests to the USTR. If you would like further information or assistance in filing comments in connection with next week’s Federal Register notice regarding the proposed Section 301 increases and renewed exclusion process, assistance in performing Section 301 due diligence reviews, requesting refunds for past entries or any other Section 301 tariff-related matter, please contact Jessica Rifkin (jrifkin@ofwlaw.com), Tom O’Donnell (todonnell@ofwlaw.com), or Denise Calle (dcalle@ofwlaw.com).

Subscribe

Subscribe to receive OFW’s Food & Agriculture World Insights Newsletter.