Since 1922

AHEC Trade Alert: Update on China Tariffs and Exclusions

Yesterday AHEC  attended a briefing with USDA Undersecretary for Trade Ted McKinney on the significance of the “Phase 1” trade deal with China on agricultural products.  As mentioned in last week’s AHEC Trade Alert, the deal does not contain any references to the reduction of current Chinese retaliatory tariffs on US goods, but rather contains a commitment by China to increase purchases of US products—including hardwood products—by an additional $200 billion over the next two years. China is expected to accomplish this through a combination of targeted tariff exclusions, a reduction of technical barriers to trade, government purchases and Chinese government “encouragement” for the private sector to source US goods.

According to the USDA, as part of this agreement China will be re-opening its “Tariff Exclusion Process” and will begin to review applications for specific product exclusions in the near future.  Attached to this email is a report produced by the US Embassy in Beijing last summer outlining the original application procedures.  We understand that several Chinese companies did apply in the first round last June but to our knowledge none were approved.  The US embassy believes that in light of the Phase 1 commitments the Chinese government may look more favorably on applications this time around.

Please note that only Chinese companies and Chinese trade associations can apply for the tariff exclusions, and it is important that US hardwood exporters communicate with their Chinese customers in order to encourage as many Chinese entities as possible to push for tariff exclusions on US hardwood.

The attached USDA report contains step by step instructions on how your customers can apply, who is eligible, and what information is required as well as links to the Chinese State Council Customs Tariff Commission who will be reviewing the applications.  As stated in the original Chinese document, applicants need to show the tariffs on US goods impact their business in one or more of the following ways:  1) the Chinese importer faces challenges seeking alternative sources of supply; 2) the tariffs cause serious economic damage to the applicant; 3) the tariffs cause major negative structural impacts on the relevant industries or lead to serious social consequences.

AHEC will be working through our contacts in the Chinese furniture and flooring associations on the national as well as regional levels, but the more noise our Chinese customers make as individual companies the more likely the Chinese government will consider tariff exclusions.

We would appreciate any feedback you hear from your Chinese customers.

 

I hope you all have a good weekend,

MICHAEL S SNOW

EXECUTIVE DIRECTOR

 

Click here for more information: China’s Tariff Exclusion Process Explained_Beijing_China – Peoples Republic of_6-6-2019

TOOLS & RESOURCES
Hardwood Wizard
A powerful search engine created specifically for the hardwood industry . . .READ MORE
Hardwood Wizard
A powerful search engine created specifically for the hardwood industry . . .READ MORE
Hardwood Wizard
A powerful search engine created specifically for the hardwood industry . . .READ MORE
Hardwood Wizard
A powerful search engine created specifically for the hardwood industry . . .READ MORE
TOOLS & RESOURCES

A powerful search engine created specifically for the hardwood industry . . .

READ MORE

Tracking price movement over a historical landscape can reveal valuable information . . .

READ MORE

 

HMR presentations offer a different and often much broader examination . . .

READ MORE

 

Information used to produce HMR publications comes from a broad range . . .

READ MORE