The U.S. Trade Representative (USTR) issued a draft Federal Register notice outlining its process to review the Section 301 duties imposed on imported goods pursuant to the Large Civil Aircraft Dispute with the European Union (EU).  This review is required by statute (Section 306(b)(2) of the Trade Act of 1974) and may result in goods being added to or removed from the list of products subject to Section 301 tariffs.  It may also result in a change in the tariff level.

To collect comments USTR has created a new electronic portal.  The portal opens Friday, June 26, 2020 and we anticipate will close July 26, 2020.   We further anticipate a USTR review decision on or about August 12, 2020.  We strongly recommend that clients and companies interested in submitting comments not wait until the last day of the comment period to submit comments through the electronic portal.  USTR is expecting approximately 25,000 comments and heavy last minute traffic may slow the electronic portal considerably.

As previously reported, the initial assessment of Section 301 duties in this dispute occurred in October 2019 when the U.S. imposed a 10 percent tariff on new European large civil aircraft and a 25 percent tariff on certain EU agricultural goods and other products, including products Irish whiskey, various European cheeses, and certain apparel.  USTR received nearly 26,000 comments in response to its review announced on December 12, 2019, which resulted in certain revisions to the list of tariffed goods on February 14, 2020.

In this most recent review, USTR is seeking comments on the following topics:

• Whether products listed in Annex I of the Notice should be removed from or remain on the list of goods subject to Section 301 duties;
• Whether Section 301 duties on specific products should be increased, up to a level of 100 percent;
• Whether additional duties should be imposed on specific products listed in Annex II or Annex III of the Notice; and
• The rate of additional duty (up to 100 percent) to be applied to any products drawn from Annex II or Annex III of the Notice.

We encourage clients and companies interested in submitting comments on the list of goods potentially subject to tariffs to contact Husch Blackwell’s International Trade and Supply Chain Team.