On March 25, 2020, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued amended General License 1A “Official Business of the United States Government” and General License 2A “Authorizing the Wind Down of Transactions Involving the Nicaraguan National Police” to clarify they were also issued under the Nicaraguan Human Rights and Anticorruption Act of 2018, 50 U.S.C. § 1701 (NHRA). Among other things, the NHRA directs the president to impose sanctions on persons engaging in significant acts of violence, human rights violations, significant corruption and acts that undermine democratic processes or institutions in Nicaragua. OFAC has added the Nicaraguan National Police (NNP) and several other entities and individuals to the SDN List pursuant to this authority.

No substantive changes were made to the previous versions of General License 1 and General License 2, but they were superseded and replaced by General Licenses 1A and 2A, respectively. General License 1A authorizes transactions otherwise prohibited by the Nicaraguan Sanctions Regulations, 31 C.F.R. §§ 582.101-.901 (NSR) that constitute official business of the U.S. government. General License 2A authorizes transactions otherwise prohibited by the NSR that are ordinarily incident and necessary to the wind down of transactions involving the Nicaraguan National Police (NNP) or any entity the NNP owns, directly or indirectly, a 50% or greater interest, including the processing of salary payments from the NNP to its employees, through 12:01 a.m. ET, May 6, 2020.

UPDATED: April 6, 2020 – Major operational changes continue at trade-related U.S. government agencies and courts due to personnel and public safety concerns over the COVID-19 outbreak in the United States. Below is currently available information on their status. Overall, the Office of Personnel Management has announced that as of March 16, 2020, and until further notice, federal offices nationwide are open but “maximum telework flexibilities” are in place for all eligible employees “pursuant to direction from agency heads.”

Trade Agencies and Court Status

U.S. Department of Commerce – While Commerce has published no formal notice of its operating status, it is known that the main Commerce building was closed on March 31 until further notice. Access to the Herbert C. Hoover building is now restricted to only necessary security and maintenance staff, and “mission critical” employees are in contact with their supervisors. The International Trade Administration (ITA) has temporarily modified its antidumping and countervailing duty (AD/CVD) cases to facilitate the serving of documents through electronic means. Effective March 24, 2020 and until May 19, 2020, documents containing business proprietary information (BPI) may be served on opposing counsel via ITA’s online ACCESS data portal instead of the normal requirement for hard-copy “in-person” service. Further, the Bureau of Industry and Security (BIS) has canceled its export control forums scheduled for April 2020.

U.S. Department of the Treasury – While Treasury has published no formal notice of its operating status, the “public engagement” schedule remains empty, indicating that all outside meetings and events have been canceled. The Office of Foreign Assets Control (OFAC) has not indicated yet whether its operations have been affected.

U.S. Department of State – The Directorate of Defense Trade Controls (DDTC) has stated that its core activities across its Licensing, Compliance, Policy, and Management offices continue to function within the parameters and adjustments that have been made as the agency follows OPM guidance.

  • Licensing activities: All electronic application systems are currently in normal operational mode and new licenses continue to be accepted for processing; however, a longer than normal processing time should be expected.
  • Registration, Commodity Jurisdiction Requests and General Correspondence: These filings via the Defense Export Control and Compliance System (DECCS) continue and are being processed as they are submitted; responses may be delayed by the current operational environment.

DDTC states that it has established a new option for industry to submit disclosures and related information (e.g., exhibits, extension requests and responses to DTCC inquires) by allowing submissions via email to DTCC-CaseStatus@state.gov. In the event that a disclosure cannot be submitted via email, DDTC indicates that the continued use of regular U.S. mail is acceptable.

U.S. Trade Representative (USTR) – The Office of the U.S. Trade Representative has still offered no update on its operating status within the Executive Office of the President.

U.S. International Trade Commission (ITC) – The ITC stated that it is open for business while it continues to monitor the situation. Since March 17, all ITC employees have been teleworking full-time. The secretary’s office will accept only electronic filings during this time. Filings must be made through the ITC’s Electronic Document Information System (EDIS) at https://edis.usitc.gov. No in-person, paper-based filings or paper copies of any electronic filings will be accepted until further notice. The ITC building is now closed to the public entirely through at least April 24, 2020.

  • Section 337 Hearings: Administrative law judges (ALJs) have been ordered to postpone any hearings until after May 12, 2020. All discovery will continue and any essential outside participation by staff will be decided on a case-by-case basis.
  • Title VII Matters: Until further notice, no in-person preliminary phase Title VII (antidumping and countervailing duty) staff conferences will be held for new and ongoing investigations. Instead, interested parties will have the opportunity to provide opening remarks, witness testimony, and responses to staff questions through written submissions, in addition to post conference briefs. Information and guidance will be provided to parties by the investigative staff in each affected investigation. All ITC Title VII votes will be conducted by notation; there will be no in-person vote for the next 60 days. Until further notice, no in-person hearings will be held for final phase Title VII investigations, five-year (sunset) reviews, and those held under Section 332 and Section 131. In lieu of in-person hearings, staff will provide specific information and guidance to parties in each affected investigation on alternative means of providing information to the commission. Interested parties will be invited to provide opening remarks, written testimony, and responses to questions issued by the commission with certified written responses; parties may also be invited to participate in virtual or telephonic closing and/or rebuttal statements. The ITC has prepared a COVID-19 related set of FAQs.
  • Electronic service of documents has temporarily been implemented for most ITC issuances. Public documents will continue to be made available via the ITC’s electronic record, EDIS. In addition, temporarily, confidential documents will be made available to authorized parties via Box (box.com). Service of confidential documents will be considered effected upon notification via email to other parties/counsel in ongoing investigations that the documents are available for download.
  • Agency Meetings, Seminars and Briefings: All scheduled in-person meetings with outside persons have been cancelled or postponed.

U.S. Customs and Border Protection (CBP) – CBP refers users to DHS.gov/coronavirus for information related to the COVID-19 pandemic, where it states that “all air, land and sea Ports of Entry (POEs), CBP Officers (CBPOs) and Border Patrol Agents (BPAs) continue to identify and refer individuals with symptoms of COVID-19 or a travel history to China, Iran, or certain European countries in the past 14 days to CDC or local public health officials for enhanced health screening.”

In order to streamline communications and support the trade community, CBP launched the CBP COVID-19 Updates and Announcements web page specifically dedicated to the most recent trade-related information and messaging on the impacts of COVID-19. Information found on the web page includes Federal Register notices and Cargo Systems Messaging Service communications related to COVID-19, as well as updates and announcements in trade programs and cargo security.

DHS continues to state that the “routing of all flights with passengers who have recently been in China, Iran, and certain European countries through select airports with established resources, procedures and personnel is an important, prudent step DHS is taking actively to decrease the strain on public health officials screening incoming travelers and protecting the American public.”

U.S. Census Bureau – Many U.S. Census Bureau employees are operating remotely via telework. During this time, call centers and email inboxes will remain open to assist customers’ daily trade needs. However, the agency will have limited access to physical mail. For those companies that are submitting a Voluntary Self-Disclosure (VSD) or data request, please make the submission electronically to the Trade Regulations Branch (TRB) in a password-protected file to emd.askregs@census.gov (for VSDs) or Data User & Trade Outreach Branch (DUTOB) to tmd.outreach@census.gov (for data requests). Additionally, such submissions may be sent to the bureau’s secure fax at 301-763-8835.

U.S. Court of International Trade (CIT) – According to CIT’s statement of April 2, 2020, courthouse access has been temporarily restricted until further notice. The staff of the Office of the Clerk is available by telephone and email. The court’s CM/ECF system continues to be operational during this time and unless otherwise ordered, all filing deadlines will remain in effect.

Any filings that are permitted by the Rules of the Court to be made by mail or delivery should be addressed to:

Office of the Clerk – Case Management
U.S. Court of International Trade
One Federal Plaza
New York, NY 10278

Any filings that are permitted by the Rules of the Court to be made in person should be brought to the court security officers at the courthouse. The court notes “that there will be delays in processing documents that are mailed or delivered to the courthouse.”

U.S. Court of Appeals for the Federal Circuit – Per a public advisory notice and an administrative order, the Federal Circuit began restricting public access to the National Courts Building complex on March 16, 2020. On March 19, the court issued an updated public advisory stating that all cases scheduled for argument during the April 2020 sitting will now be conducted by telephone conference and no in-person hearings will be held.

The Clerk’s Office has issued new guidance on how counsel may accomplish service outside of CM/ECF, which is most frequently required when serving pro se parties or confidential materials. Individuals, including pro se litigants and couriers wishing to deliver or to file case documents, must submit these items either by mail or by deposit in the court’s night box. Mail and third-party commercial deliveries will be limited to the lobby. Any other deliveries must be coordinated ahead of time with relevant court staff.

Useful U.S. Government Website Links

The U.S. government has established multiple websites to assist the public:

U.S. Government International Trade-Related Websites

International Resources

Additional Resources

Thompson Hine has launched a multidisciplinary COVID-19 Task Force to monitor the latest developments and guidance from public health officials and assess the potential impacts on our clients and their businesses. The COVID-19 Task Force page on our website provides a centralized location for recent publications, webinars, articles and resources that you may find helpful.

The Office of the U.S. Trade Representative (USTR) has issued a Federal Register notice exempting Section 301 tariffs for certain List 3 (imports from China with an annual trade value of $200 billion) products. The exemptions cover one 10-digit Harmonized Tariff System (HTS) subheading and 176 specially-prepared product descriptions, which combined cover 202 separately submitted exclusion requests.

The excluded HTS subheading is 7002.10.2000, which covers “Glass in balls (other than microspheres of heading 7018), rods or tubes, unworked: Balls: Other. The exclusions with specially-prepared product descriptions include but are not limited to: certain frozen fish; oyster shells; certain fruit and vegetable seeds; certain synthetic silica gel; multiple different chemicals and materials (CAS numbers are provided); certain parts of fences; certain types of gaskets, hoses, washers, and other seals; certain new tubeless, bias-ply pneumatic and radial pneumatic tires; certain backpacks, tote, duffel bags, and other bags; certain fishing tackle bags; certain surfboard covers; various types of paper products; yarn of cashmere or camel hair; certain polyester fabrics; certain types of bathtubs, sinks, certain faucet and shower parts; certain ceramic articles; types of tempered safety glass; certain types of rear-view mirrors; certain bird feeders; various steel articles covered in Chapter 73 of the HTS; certain kits of bits for woodworking and drilling; certain screen door cross bars; certain pistons and cylinder heads for engines; certain hydraulic and screw jacks; certain bandsaws for working wood; certain camshafts and crankshafts; certain single-phase AC electric motors; certain inductors; certain color TV cameras; certain radiobroadcast receiver kits; various types of printed circuit boards; certain digital sound processing equipment; certain steel or aluminum bumpers for off-road vehicles; certain RV vent insulators; certain aluminum radiators; certain steering gears and other steering cylinder parts for motor vehicles; certain bicycles; certain single-axle trailers with steel or aluminum frames; certain automobile seats and seat covers; certain shelving units and cabinets; and certain lamps, LED lamps and LED backlight modules.

These exclusions will apply from September 24, 2018, through August 7, 2020. These exclusions apply to any product that satisfies the description in the annex of the Federal Register notice, regardless of whether the company using the exclusion filed the request. Each exclusion is governed by the scope of the HTS heading and the product description appearing in the annex of the exclusion notice; it is not governed by the product description set out in any particular exclusion request. U.S. Customs and Border Protection will soon issue instructions on entry guidance and implementation. The USTR will continue to issue determinations on pending requests on a periodic basis.

The Office of the U.S. Trade Representative (USTR) has issued a Federal Register notice seeking public comment on the possible extension of Section 301 tariff exclusions for certain products that it granted on June 4, 2019, in the ongoing trade dispute with China. These exclusions were in the fifth batch of exclusions granted as part of the first round of Section 301 tariffs placed on imports of Chinese goods with an annual trade value of approximately $34 billion (List/Tranche 1 products). These exclusions (see Trump and Trade Update of June 4, 2019) are scheduled to expire on June 4, 2020. This batch of exclusions included one full HTS subheading and 88 partial exclusions under an HTSUS subheading as further defined in specially prepared product descriptions. The USTR is considering a possible extension of up to 12 months for these exclusions and seeks public comment on whether to extend particular ones.

The USTR states that it will evaluate the possible extension of each exclusion on a case-by-case basis. The focus of the evaluation will be “whether, despite the first imposition of these additional duties in July 2018, the particular product remains available only from China.” These issues should be addressed in submitting any comments:

  • Whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries.
  • Any changes in the global supply chain since July 2018 as to the particular product, or any other relevant industry developments.
  • The efforts, if any, the importers or U.S. purchasers have undertaken since July 2018 to source the product from the United States or third countries.
  • The USTR notes that it will continue to consider whether the imposition of additional duties on the products covered by the exclusion will result in severe economic harm to the commenter or other U.S. interests.

Comments will be accepted between April 1 and April 30, 2020. All submissions must be made electronically via the www.regulations.gov portal on Docket Number USTR-2020-0013. The USTR strongly recommends that those wishing to comment complete Exclusion Extension Comment: Form A, which will be posted on the public docket. Importers and purchasers may also submit Exclusion Extension Comment: Form B containing business confidential information via email to 301bcisubmissions@ustr.eop.gov, which will not be made available to the public. If filing a Form B, parties, the USTR notes, must also file a public Form A.

The USTR is considering the possible extension of product exclusions only for those exclusions granted in June 2019; no other extensions under any other product exclusion notices issued by the USTR will be considered.

The Office of the U.S. Trade Representative (USTR) has issued a Notice and Request for Comments seeking comment from members of the public, businesses, and government agencies as to whether further modifications are necessary to the China Section 301 tariffs “to keep current on developments in our national fight against the coronavirus pandemic.” USTR states that throughout the Section 301 process “the United States has prioritized health considerations”, has worked with the Department of Health and Human Services to not “impose tariffs on certain critical products such as ventilators, oxygen masks, and nubilators” and, has “granted exclusions for a large number of health-related products”. Nevertheless, it is taking this additional action to assess whether the removal of duties from additional medical care products is necessary.

Submissions are limited to comments on products subject to the tariff actions and relevant to the medical response to the coronavirus. Comments should be filed using the Federal eRulemaking Portal (www.regulations.gov) on Docket No. USTR-2020-0014. USTR is requesting that comments be submitted “promptly” but no later than June 25, 2020. Once posted, any responses to submitted comments should be submitted within three (3) business days in order to be considered. USTR will review comments on a rolling basis. Each comment must include:

  • The ten-digit HTS subheading applicable to the product;
  • Specifically identify the particular product and “explain precisely how the product relates to the response to the COVID-19 outbreak”;
  • Identify the product in terms of its functionality and physical characteristics (e.g., dimensions, material composition, or other characteristics);

Commenters may also provide information regarding the producer, importer, ultimate consumer, or trademarks or tradenames, but USTR notes that “this is less helpful.” USTR has also clarified that comments may be submitted under this docket number even if the product is subject to a pending or previously denied
exclusion request.

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced its extension of two general licenses related to GAZ Group, Ukraine-related General License No. 13N, “Authorizing Certain Transactions Necessary to Divest or Transfer Debt, Equity, or Other Holdings in GAZ Group” and Ukraine-related General License No. 15H, “Authorizing Certain Activities Necessary to Maintenance or Wind Down of Operations or Existing Contracts with GAZ Group, and Certain Automotive Safety and Environmental Activities.” In addition to extending the expiration dates to July 22, 2020, General License 15H expands the scope of authorized transactions and activities involving GAZ Group.

Effective March 20, 2020, General License 13N supersedes and replaces General License 13M. General License 13N authorizes all transactions and activities otherwise prohibited by Ukraine Related Sanctions Regulations, 31 C.F.R. §§ 589.101-.901 (URSR), that are ordinarily incident and necessary to:

  • Divest or transfer debt, equity or other holdings in GAZ Group or in entities in which GAZ Group owns, directly or indirectly, a 50% or greater interests, to a non-U.S. person; or
  • Facilitate the transfer of debt, equity or other holdings in GAZ Group or in entities in which GAZ Group owns, directly or indirectly, a 50% or greater interests, by a non-U.S. person to another non-U.S. person.

Additionally, General License 13N requires that on or before August 5, 2020, all U.S. persons participating in transactions authorized by this general license file a comprehensive, detailed report with OFAC. The report should include the names and addresses of the parties involved, the type and scope of activities conducted, and the dates on which the activities occurred.

Similarly, effective March 20, 2020, General License 15H supersedes and replaces General License 15G. General License 15H authorizes all transactions and activities otherwise prohibited by the URSR that are ordinarily incident and necessary to:

  • The maintenance or wind down of operations, contracts, or other agreements, including the importation of goods, services, or technology into the United States, involving GAZ Group or any other entity in which GAZ Group owns, directly or indirectly, a 50 percent or greater interest and that were in effect prior to April 6, 2018;
  • Research and development regarding, and the related purchase, manufacture, and installation of, Electronic Stability Program systems and other advanced driver-assistance systems, or components thereof, consistent with applicable automotive safety regulatory requirements, in vehicles produced by GAZ Group or any other entity in which GAZ Group owns, directly or indirectly, a 50 percent or greater interest;
  • Research and development regarding, and the related purchase, manufacture, and installation of, components necessary to implement Euro 5/6 emissions standards in vehicles produced by GAZ Group or any other entity in which GAZ Group owns, directly or indirectly, a 50 percent or greater interest; or
  • The installation of occupant safety systems (including steering wheels, airbags, and seat belts) consistent with applicable automotive safety regulatory requirements in vehicles produced by GAZ Group or any other entity in which GAZ Group owns, directly or indirectly, a 50 percent or greater interest.

Previously, General License 15G was expanded to authorize transactions involving GAZ Group relating to research and development of Electronic Stability Program systems and other advanced driver-assistance system, and Euro 5/6 emissions standards. General License 15H further expands the scope of authorized transactions involving GAZ Group relating to the installation of occupant safety systems consistent with automotive safety regulation requirements.

General License 15H also requires that on or before August 5, 2020, all U.S. persons participating in transactions authorized by this general license file a comprehensive, detailed report with OFAC. The report should include the names and addresses of the parties involved, the type and scope of activities conducted, and the dates on which the activities occurred.

General Licenses 13N and 15H expire on July 22, 2020 at 12:01 a.m. EST.

In its continuing effort to tighten economic sanctions on Iran, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned five United Arab Emirates (UAE)-based companies that facilitate the Iranian regime’s petroleum and petrochemical sales. According to OFAC, these companies in 2019 “collectively purchased hundreds of thousands of metric tons of petroleum products from the National Iranian Oil Company (NIOC),” a major source of revenue to fund and support the Islamic Revolutionary Guard Corps-Qods Force’s (IRGC-QF). OFAC designated and placed on the Specially Designated Nationals (SDN) List (1) Petro Grand FZE, (2) Alphabet International DMCC, (3) Swissol Trade DMCC, (4) Alam Althrwa General Trading LLC, and (5) Alwaneo LLC Co. Treasury Secretary Steven Mnuchin stated, “The Trump Administration will continue to target and isolate those who support the Iranian regime and remains committed to facilitating humanitarian trade and assistance in support of the Iranian people.”

As a result of this action, all property and interests in property of these persons that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. Because U.S. persons are generally prohibited from dealing with entities on the SDN List, persons who engage in certain transactions with these designated persons may themselves be exposed to designation. OFAC has indicated that any foreign financial institution that knowingly facilitates a significant financial transaction or provides significant financial services for these persons could be subject to U.S. correspondent account sanctions or payable-through account sanctions.

Similarly, on March 16, 2020, the Department of Commerce’s Bureau of Industry and Security (BIS) added Iran Air and five Iranian nationals to the Entity List. Iran Air was added due to its transportation of military-related equipment on behalf of Iran’s Islamic Revolutionary Guard Corps (IRGC) and Ministry of Defense and Armed Forces Logistics (MODAFL). Aref Bali Lashak, Kamran Daneshjou, Mehdi Teranchi, Ali Mehdipour Omrani, and Sayyed Mohammad Mehdi Hadavi have been added due to their involvement in nuclear-related activities that are contrary to the national security and/or foreign policy interests of the United States. As a result, BIS has imposed a license requirement for all export transactions with these entities. For Iran Air, the licensing policy will be case-by-case review for licenses for the safety of civil aviation and the safe operation of aircraft; for the Iranian nationals, BIS has imposed a presumption of denial for any license applications.

On March 9, 2020 the Department of the Treasury (Treasury) published in the Federal Register proposed regulations to establish a fee for parties filing a voluntary notice of certain transactions for review by the Committee on Foreign Investment in the United States (CFIUS). The regulation would establish a fee for both “covered transactions” involving investments in or acquisitions of U.S. businesses and “covered real estate transactions.” Treasury is interested in comments from the public on the impact of the proposed tiered fixed-fee structure and whether additional tiers or additional features should be considered. Comments are due by April 8.

The proposed fees would be the same for voluntary notices filed with respect to both covered transactions and covered real estate transactions. Notably, persons filing both mandatory short-form declarations or voluntary short-form declarations to CFIUS would be exempt from the filing fees.

The proposed tiered fixed-fee structure is the following:

Value of the transaction Fee
Less than $500,000 No fee
Equal to or greater than $500,000
but less than $5,000,000		 $750
Equal to or greater than $5,000,000
but less than $50,000,000		 $7,500
Equal to or greater than $50,000,000
but less than $250,000,000		 $75,000
Equal to or greater than $250,000,000
but less than $750,000,000		 $150,000
Equal to or greater than $750,000,000 $300,000

Treasury commented that it believes the proposed fee structure “will not discourage filings and will allow parties to continue the practice of determining whether to file a voluntary written notice based on an evaluation of the facts and circumstances of the transaction.” Treasury “expects that the filing fee will represent a relatively small proportion of the total transaction costs associated with any given transaction.”

For transactions involving payment in securities, through non-cash assets, by services, or by other means, the proposed regulation sets forth the following guidelines for determining transaction value for purposes of the filing fee:

  • For securities traded on a national exchange, the transaction value would be determined by the last published closing price of the securities prior to the date of filing of the CFIUS notice;
  • For non-cash assets, interests, services, or other means, the transaction value would be the fair market value of those items as of the date of notice filing with CFIUS;
  • For a loan or financing agreement, the transaction value would be the cash value of the loan or financing agreement;
  • For conversions of a contingent equity interest previously acquired by a foreign person, the value of the transaction would include the initial purchase by or on behalf of the foreign person to obtain the equity interest in addition to any other payments made; and
  • With respect to covered real estate transactions, for leases and concessions, the value of the transaction would be the sum of the consideration, including lease inducements, fixed payments, certain variable lease payments, and other types of identifiable consideration applicable to real estate transactions.

Comments may be submitted via electronic submission using the Federal government electronic portal at www.regulations.gov on Docket No. TREAS-DO-2020-0008 or RIN 1505-AC65; or via mail to U.S. Department of the Treasury, Attention: Laura Black, Director of Investment Security Policy and International Relations, 1500 Pennsylvania Avenue N.W., Washington, D.C. 20220.

U.S Trade Representative (USTR) Robert Lighthizer has formally notified Congress that President Donald Trump will negotiate a trade agreement with the Republic of Kenya.  Ambassador Lighthizer stated that the Trump administration is seeking a “a comprehensive, high-standard agreement with Kenya that can serve as a model for additional trade agreements across Africa.  Kenya is an important regional leader, a strategic partner of the United States, and a commercial hub that can provide substantial opportunities for U.S. trade and investment.”   Pursuant to the provisions of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (i.e., Trade Promotion Authority (TPA) or “fast track” authority), USTR must notify Congress in order to develop negotiating objectives that include Congressional and public input.  USTR will now publish a notice in the Federal Register seeking public comments on the focus and content of any trade negotiations and will publish 30 days before the commencement of formal negotiations the negotiating objectives.

The notification letter to Speaker Nancy Pelosi notes that USTR intends to initiate negotiations no earlier than June 15, 2020.  Negotiations will seek to address both tariff and non-tariff trade barriers and achieve “fairer, more balanced trade.”  The letter also indicates that the United States will seek provisions to “ensure effective implementation and enforcement.”  Two-way trade in goods between the United States and Kenya was approximately $1 billion in both 2018 and 2019.  Identical letters were also sent to Rep. Kevin McCarthy (House Minority Leader), Sen. Charles Schumer (Senate Minority Leader) and Sen. Chuck Grassley (Senate President Pro Tempore).  USTR first announced that it was initiating negotiations in February 2020 (see Trump and Trade Update of February 7, 2020).

 

The Office of the U.S. Trade Representative (USTR), after seeking comments on whether to extend for another year certain product exclusions it granted in March 2019 (see Trump and Trade Update of January 2, 2020), has granted 11 extensions covering these Harmonized Tariff Schedule (HTS) subheadings and product descriptions:

  • 8412.21.0045 – Other engines and motors, and parts thereof: Hydraulic power engines and motors: Linear acting (cylinders): Telescoping
  • 8607.21.1000 – Parts of railway or tramway locomotives or rolling stock: Truck assemblies, axles and wheels, and parts thereof: Brakes and parts thereof: Air brakes and parts thereof: For vehicles of heading 8605 or 8606
  • Breast pumps, whether or not with accessories or batteries (described in statistical reporting number 8413.81.0040)
  • Machinery for filtering water, submersible, powered by batteries, manually operated, such machinery designed for use in pools, basins, aquariums, spas or similar contained bodies of water (described in statistical reporting number 8421.21.0000)
  • Hand-held ultraviolet water purifiers, powered by batteries (described in statistical reporting number 8421.21.0000)
  • Filters designed to remove sulfites from wine (described in statistical reporting number 8421.22.0000)
  • Filter housings, covers, or couplings, the foregoing of steel and comprising parts of machinery or apparatus for filtering liquids (described in statistical reporting number 8421.99.0040)
  • Vulcanized rubber tracks, each incorporating cords and cleats of steel, designed for use on construction equipment (described in statistical reporting number 8431.49.9095)
  • Automated data processing storage units (other than magnetic disk drive units), not assembled in cabinets for placing on a table or similar place, not presented with any other unit of a system (described in statistical reporting number 8471.70.6000)
  • Electric motors, AC, permanent split capacitor type, each in a housing with outside diameter of 84 mm or less, with output of 6 W or more but not exceeding 16 W (described in statistical reporting number 8501.10.4020)
  • Inoculator sets of plastics, each consisting of a plate with multiple wells, a display tray, and a lid; when assembled, the set measuring 105 mm or more but not exceeding 108 mm in width, 138 mm or more but not exceeding 140 mm in depth, and 6.5 mm or less in thickness (described in statistical reporting number 9027.90.5650)

These HTS subheadings and products are currently subject to the Section 301 25 percent tariff covering Chinese products imported into the United States worth approximately $34 billion (List 1), and their exclusions to the tariff were set to expire on March 25, 2020. With this extension, such products entering the United States for consumption, or withdrawn from warehouse for consumption, on or after July 6, 2018 and before March 25, 2021, will continue to be excluded from the additional duty.   All other Section 301 exclusions granted in March 2019 will expire as of midnight, March 25, 2020 (see Trump and Trade Update of March 21, 2019).