- capital report: july 17, 2018
capital report: july 17, 2018
USTR Announces Product Exclusion Process for Section 301
The U.S. Trade Representative (USTR) announced the
exclusion process for Chinese products subject to Section 301 tariffs.
Effective July 6, an additional 25 percent tariff will be assessed on
818 products (Annex A
and B) imported from China, covering a trade value of approximately $34
billion in 2018. The listed HTS codes include both light duty and heavy duty products.
Register notice outlines the criteria and process for a product exclusion
request. In making its determination on each request, USTR may consider
whether a product is available from a source outside of China, whether the
additional duties would cause severe economic harm to the requestor or other
U.S. interests, and whether the particular product is strategically important
or related to Chinese industrial programs including “Made in China 2025.”
A copy of the product exclusion request form can be found here.
Important dates and deadlines:
public will have 90 days to file a request for a product exclusion; the
request period will end on Oct. 9, 2018.
public posting of the filed request on regulations.gov,
the public will have 14 days to file responses to the request for product
exclusion. After the close of the 14-day response period, interested
persons will have an additional seven days to reply to any responses
received in support of or opposition to the request.
will be effective for one year upon the publication of the exclusion
determination in the Federal Register, and will apply retroactively to
July 6, 2018.
Exclusions will be made on a product basis and will
apply to all imports of the product, regardless of whether the importer filed a
request. The U.S. Customs and Border Protection will apply the tariff exclusions
based on the product.
Also, the USTR released a second (Annex C)
and third list
of products that have been recommended to be added to the tariff list.
These proposed products will undergo a review process, including a comment
period and public hearing. Written comments regarding the impact of tariffs on
these lists of products are due July 23, 2018 and Aug. 17, 2018,
Let us know if you are impacted by the proposed action or
if you have any questions.
Read the Federal Register notice: https://www.gpo.gov/fdsys/pkg/FR-2018-07-11/pdf/2018-14820.pdf
Rhode Island Bill
Restricting Aftermarket Parts Becomes Law
On July 4, Governor Gina Raimondo of Rhode Island allowed
House Bill 8013/Senate Bill 2679 to become law without her signature, following
passage by the legislature in late June. The bill not only prohibits use of
non-OEM parts without express written consent from the vehicle owner, but also
forbids insurance companies from requiring the use of aftermarket parts for any
repair on vehicles fewer than 48 months old. Auto glass is exempted in the
Five states, including Rhode Island, have laws restricting
aftermarket parts to some extent, but this legislation is the most restrictive
Questions? Contact Tom
Read the legislation: https://legiscan.com/RI/bill/S2679/2018
Prop 65 Deadline Fast
The Aug. 30 deadline for compliance with the Prop 65 warning
requirements is just around the corner. These regulations, requiring warnings
to California consumers about significant exposures to chemicals, are complex,
and businesses should carefully review the regulations to make sure they are
fully in compliance, as fines range up to $2,500 per day. It is important that
anyone selling, supplying or distributing products in California take proper
precautions and evaluate what they are doing to comply with Prop 65.
A member-exclusive Prop 65 toolkit is available to help
automotive aftermarket businesses navigate this regulation. Log in to view the
technical and legal compliance webinar and read about best practices for ACES/PIES
and cataloging content related to these changes.
Questions? Contact Tom
Access the toolkit: https://autocare.org/Government-Affairs/Issues/Prop-65/
Get the Latest
Coverage of the 2018 Elections
Thanks to support from the Auto Care Political Action
Committee (ACPAC), we are pleased
to bring Capital Report readers the latest Inside Elections with Nathan
Gonzalez, a bi-monthly nonpartisan analysis of U.S. elections.
Read the Latest Issue: https://autocare.org/Government-Affairs/Capital-Report/Election-Updates/inside-elections-070618/