Applying for Section 301 Tariff Exemptions
In August 2017, President Trump launched a Section 301 investigation into the trade practices of China. Sections 301 – 310 of the Trade Act of 1974, as amended, are commonly referred to as “Section 301.” It is one of the principal statutory means by which the U.S. enforces its rights under trade agreements and addresses unfair foreign barriers to U.S. exports. Section 301 procedures apply to foreign acts, policies and practices that the U.S. Trade Representative (USTR) determines (1) either violate, or are inconsistent with, a trade agreement; or (2) are unjustifiable and burden or restrict U.S. commerce. Once the USTR begins a Section 301 investigation, it seeks a negotiated settlement with the foreign country concerned (either through compensation or elimination of the particular barrier or practice). For cases involving trade (e.g. WTO) agreements, the USTR is required to use the formal dispute proceedings specified in the agreement. For Section 301 cases, the USTR has 12 to 18 months to seek a negotiated resolution. If one is not obtained then the USTR determines whether to retaliate (which usually takes the form of increased tariffs on selected imports) at a level equivalent to the estimated economic losses incurred by the U.S. firms from the foreign barrier or practice. (Enforcing U.S. Trade Laws: Section 301 and China, CRS In Focus Report, June 26, 2019).
Under Section 301, the USTR has imposed tariffs of up to 25% on a wide range of products utilized or sold by the food industry including:
- Refrigerators and Freezers
- Meat
- Seafood Products
- Whey
- Honey
- Fresh and Canned Fruits and Vegetables
- Grains and Juices
Impacted businesses may apply for exemptions from tariffs on the above products with USTR. Businesses must address:
- Whether the product is available only from China (i.e. not domestically or from another country), and if the business has attempted to source it elsewhere.
- If the tariff increase will cause serious economic harm to the business or other U.S. interests.
- Whether the product(s) in question is related to the “Made in China 2025” initiative or other similar industrial initiatives by the government of China.
Exclusions may be filed here. The deadline for filing is September 30, 2019. We can assist your company in filing Section 301 exemptions. Please contact Erik Lieberman at elieberman@usfoodimports.com or 202-765-1800 for more information.
FSIS Requests Comments on Revised Standards for Campylobacter
The U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) is requesting comments on revised performance standards for Campylobacter in comminuted chicken and turkey products based on an analytical method change. FSIS will consider comments received on this notice before announcing the final standards in the Federal Register and assessing whether establishments are meeting the standards. Campylobacter, which can be found in poultry, is the most common bacterial cause of foodborne illness in the United States and is a concern for FSIS regulated establishments. More information may be found here.
EU Food Safety Authority Determines No Safe Exposure Level for Chlorpyrifos Insecticide
The European Union (EU) will likely ban the chlorpyrifos in the future. More information may be found here. The EU decision follows the EPA’s action to not ban the insecticide. Six states recently sued the EPA over its refusal to ban chlorpyrifos which has been linked to brain damage in children.
EU and US Sign Deal to Allow More U.S. Beef in the EU Market
In 2009, the EU and the U.S. concluded a Memorandum of Understanding (MoU), revised in 2014, which provides a solution to a longstanding dispute in the World Trade Organization (WTO) regarding the use of certain growth-promoting hormones in beef production. Under the agreement, a 45,000 tonnes quota of non-hormone treated beef was open by the EU to qualifying suppliers, which included the United States.
The agreement signed on August 2 establishes that that 35,000 tonnes of this quota will now be allocated to the U.S., phased over a 7-year period, with the remaining amount left available for all other exporters.
The overall volume of the quota opened in 2009 remains unchanged, just like the quality and safety standards of beef imported into the EU. The agreement was negotiated on a basis of a mandate from EU Member States and approved by them in the Council on 15 July 2019. The Council will now recommend the agreement to the European Parliament for formal approval, so that it can enter into force in the near future. More information may be found here.
FSIS Updates List of Canadian Establishments Eligible to Export to U.S.
The list is available here.
APHIS Adds Scotland to BSE Risk Regions
Scotland’s risk category has worsened from negligible to controlled.
Latest FDA Warning Letters
The latest FDA warning letters involving food and supplements are:
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