U.S. to Impose 35% Section 421 Duty on Tires from China Effective September 26, 2009
Issue 62, September 14, 2009
The Office of the U.S. Trade Representative (USTR) has issued a press release announcing a Presidential Proclamation to impose Section 421 remedies against imports of tires for passenger cars and light trucks from China.
Per the President's proclamation, the affected tires are new pneumatic tires, of rubber, from China, of a kind used on motor cars (except racing cars) and on-the-highway light trucks, vans, and sport utility vehicles, provided for in HTS subheadings 4011.10.10, 4011.10.50, 4011.20.10, and 4011.20.50.
The three-year remedies will consist of additional tariffs of 35% ad valorem in the first year, 30% ad valorem in the second year, and 25% ad valorem in the third year.
According to the Proclamation, the additional tariffs will take effect for goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on September 26, 2009.
1Section 421 Section 4211 of the 1974 Trade Act investigations are a transitional safeguard tool to address import surges of Chinese products that cause or threaten market disruption. The procedure was negotiated as part of China’s accession to the World Trade Organization, and is in effect until December 11, 2013.
USTR press release (dated 09/11/09) available at-
http://www.ustr.gov/about-us/press-office/press-releases/2009/september/ kirk-white-house-fulfilling-trade-enforcement-pl.
Presidential Determination No. 2009-28, dated 09/11/09, available at- http://www.whitehouse.gov/the_press_office/Memorandum-For-The-Secretary-Of- Commerce-The-Secretary-Of-Labor-The-United-State-Trade-Representative/.
Regards,
Paul E. Vroman
Regulatory & Compliance Consultant
DHL Global Forwarding
