capital report: july 17, 2018

USTR Announces Product Exclusion Process for Section 301 Tariffs

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.

The Federal 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:

  • The public will have 90 days to file a request for a product exclusion; the request period will end on Oct. 9, 2018.
  • Following 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.
  • Exclusions 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, respectively.

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 final legislation.

Five states, including Rhode Island, have laws restricting aftermarket parts to some extent, but this legislation is the most restrictive to date.

Questions? Contact Tom Tucker.

Read the legislation: https://legiscan.com/RI/bill/S2679/2018

 

Prop 65 Deadline Fast Approaching

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 Tucker.

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/

 

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