Last Friday, February 14, the office of the United States Trade Representative (USTR) announced modifications to the Section 301 tariffs placed on certain EU products as part of their dispute over Airbus subsidies. The products affected account for approximately $7.5 billion worth of goods, including aircraft parts and luxury items.

Tariffs will be imposed at 25% on certain EU products, while the current tariffs on aircraft parts will increase from 10 to 25%. You can find a full list of the subheadings impacted in the notice from USTR, and the Annex breaks down as follows:

• Annex 1, subparagraphs A and B, will apply to products entered for consumptions on or after March 5, 2020.
• Annex 1, subparagraph C, will apply to products entered for consumption on or after March 18, 2020.

Please note that, as was the case before, any product contained in the Annex that is eligible for admissions under ‘domestic status,’ as per 19 CFR 146.43, may only be admitted as ‘privileged foreign status,’ as per 19 CFR 146.41, if it is (1) subject to additional Section 301 duty and (2) admitted into a U.S. foreign trade zone on or after the effective date.

In such a case, the product will be subject upon entry to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTS subheading.

You can view the full notice from USTR here.

Trans-Border will continue to monitor the situation. If you have any questions, please reach out to Bill Carey, Import Compliance Manager, at bcarey@tbgfs.com or (800) 493-9444.