Voluntary Report – Voluntary - Public Distribution Date: August 05,2020 Report Number: CH2020-0106 Report Name: Updated Guidance on China's Retaliatory Tariffs and Tariff Exclusions Process for US Products Country: China - Peoples Republic of Post: Beijing Report Category: Trade Policy Monitoring Prepared By: Abraham Inouye Approved By: Michael Ward Report Highlights: This report consolidates China’s previous announcements of additional tariffs on U.S. agriculture, fish, and wood products and information concerning the Chinese government exclusion process for imports of U.S. products. It is meant to provide U.S. exporters a clear picture of the current status of China’s retaliatory tariffs and exclusion process. NOTE: THIS REPORT IS NOT THE RESULT OF NEW ACTIONS BY CHINA BUT ORGANIZES PREVIOUSLY REPORTED INFORMATION IN A SINGLE RESOURCE. The tariff tables include the latest applied import tariffs on U.S. agriculture, fish, and wood products and have notations for products that received a product-specific tariff exclusion or are included China’s more recent tariff exclusion process. Also included are links to all tariff and exclusion related reports published by the Foreign Agricultural Service’s Office of Agricultural Affairs in Beijing to date. THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY General information Since mid-2018, the Chinese Government has taken many steps to change the trading conditions on many U.S. products, including most U.S. agriculture, fish, and wood products. This report consolidates those actions to assist U.S. exporters in navigating the current state of the market. NOTE: THIS REPORT IS NOT THE RESULT OF NEW ACTIONS BY CHINA BUT ORGANIZES PREVIOUSLY REPORTED INFORMATION IN A SINGLE RESOURCE. Beginning in mid-2018 and in response to the U.S. Section 301 and 232 Investigations, China’s State Council Tariff Commission (SCCTC) made a series of tariff announcements (see table below). These announcements increased the Chinese import tariffs on many U.S. products. Meanwhile, SCCTC also announced a process for U.S. products to become excluded from some of those additional tariffs for a set period of time. This initial process resulted in products being excluded from the additional tariffs regardless of the importer (see end notes of Appendixes 1-3 or GAIN reports CH19061, CH2020-0020 and CH2020-0104 for more information about this process and the products that received exclusions). On March 2, 2020, SCCTC launched another tariff exclusion process focused on individual importers. Through this process importers could apply for exclusions on specific consignments of U.S. products. These exclusions exempted only the retaliatory Section 301-tariffs for the products and are valid for one year from the date of approval but must be requested on a month-by-month basis (refer to GAIN report CH2020-0017). Importers may also apply for tariff exclusions for products outside the eligible product list that was included in the announcement. This report provides the up-to-date retaliatory tariffs imposed on U.S. agriculture, fish, and wood products and includes notations for products that have received tariff exclusions or are included on China’s more recent announcement as eligible for tariff exclusion. Please note that products do not need to be on that announcement for importers to apply for and receive tariffs exclusions to import the products (Appendixes 1-3). The Office of Agricultural Affairs in Beijing makes every effort to ensure that the additional tariffs outlined in this report are accurate at the time of publication. With the passage of time, the tariff rates may change. Additionally, the Mandarin Chinese product description governs customs clearance proceedings, not the English product descriptions below. Please check with your Chinese importer for the latest tariff rates and Mandarin product descriptions for U.S. food and agricultural products. 2 China’s Response to the U.S. 301 Investigation Implementation USDA Reports Link Date -- China Responds to U.S. 301 Announcement CH18018 07/06/2018 China Responds to U.S. 301 Announcement with Revised Product CH18034 List 08/23/2018 China Updates List of U.S. Products Subject to Additional Tariffs CH18047 08/23/2018 China Implements Schedule II of Its 301 Retaliatory Tariffs CH18052 08/24/2018 China Implements Supplemental Import Tariffs on U.S. Products CH18061 Exported to China 06/01/2019 China Raises Tariffs on U.S. Agricultural Products CH19030 09/01/2019 China Announces Increases to Additional Tariffs on U.S. CH19062 Agricultural Products 12/15/2019 China Calls Off Additional Tariffs on U.S. Products Planned for CH2019- December 15 0194 02/14/2020 China Announces Reduction in Certain Additional Tariffs CH2020- 0016 3 Appendix 1-Schedule of tariffs on U.S. agricultural products HS Code Description**** MFN* 232 301** Total Applied (8-digit) Rate Tariff Implementation Date Jan 1, Apr 2, Feb 14, Feb 14, 2020 2020 2018 2020 01012900 Live Horses, Not Pure Bred 10% 30.0% 40.0% Breeding 01013090 Asses, Live 10% 2.5% 12.5% 01019000 Mules And Hinnies, Live 10% 2.5% 12.5% 01022900 Cattle, Live, Other Than 10% 2.5% 12.5% Purebred Breeding 01023900 Buffalo, Live, Other Than 10% 2.5% 12.5% Purebred Breeding 01029090 Bovine Animals, Live, Nesoi 10% 2.5% 12.5% 01039110 Swine, Live, Nesoi, Weighing 10% 2.5% 12.5% Less Than 10 Kg Each 01039120 Swine, Live, Nesoi, Weighing 10% 2.5% 12.5% more than 10 kg (including) but less than 50 kg Each 01039200 Swine, Live, Nesoi, Weighing 10% 2.5% 12.5% 50 Kg (110.23 Lb.) Or More Each 01041090 Other Sheep, Live 10% 2.5% 12.5% 01042090 Other Goats, Live 10% 2.5% 12.5% 01051190 Other Chickens, Weighing Not 10% 2.5% 12.5% More Than 185 G (6.53 Oz.) Each 01051290 Other Turkeys, Weighing Not 10% 2.5% 12.5% More Than 185 G (6.53 Oz.) Each 01051390 Other Ducks, Weighing Not 10% 2.5% 12.5% More Than 185 G (6.53 Oz.) Each 01051490 Other Geese, Weighing Not 10% 2.5% 12.5% More Than 185 G (6.53 Oz.) Each 01051590 Other Guinea Fowls, Weighing 10% 2.5% 12.5% Not More Than 185 G (6.53 Oz.) Each 01059490 Other Chickens, Weighing More 10% 2.5% 12.5% Than 185 G (6.53 Oz.) Each 01059991 Other Ducks, Weighing More 10% 2.5% 12.5% Than 185 G (6.53 Oz.) Each 01059992 Other Geese, Weighing More 10% 2.5% 12.5% Than 185 G (6.53 Oz.) Each 01059993 Other Guinea Fowls, Weighing 10% 2.5% 12.5% More Than 185 G (6.53 Oz.) Each 4 01059994 Other Turkeys, Weighing More 10% 2.5% 12.5% Than 185 G (6.53 Oz.) Each 01061190 Other Primates, Live 10% 2.5% 12.5% 01061219 Other Whales, Dolphins, 10% 2.5% 12.5% Porpoises; Manatees, Dungongs; 01061229 Other Seals, Sea Lions Etc, 10% 2.5% 12.5% 01061390 Other Camels And Other 10% 2.5% 12.5% Camelids (Camelidae), 01061490 Other Rabbits And Hares 10% 2.5% 12.5% 01061990 Other Edible Mammals, Not 10% 12.5% 22.5% Pure Bred Breeding 01062020 Edible Reptiles 10% 2.5% 12.5% 01062090 Reptiles, Nes 10% 12.5% 22.5% 01063190 Live Birds Of Prey 10% 2.5% 12.5% 01063290 Other Psittaciformes 10% 2.5% 12.5% 01063390 Other Ostriches; Emus 10% 2.5% 12.5% 01063921 Young Pigeon 10% 2.5% 12.5% 01063923 Wild Duck 10% 2.5% 12.5% 01063929 Other Edible Birds 10% 2.5% 12.5% 01063990 Other Birds 10% 2.5% 12.5% 01064190 Other Bees 10% 2.5% 12.5% 01064990 Other Insects, Not For Pure 10% 12.5% 22.5% Bred Breeding 01069090 Other Live Animals, Not For 10% 27.5% 37.5% Pure Bred Breeding 01103110 Groats & Meal of Wheat, In- 9% 25.0% 34.0% Quota 01103110 Groats & Meal of Wheat, Out- 65% 25.0% 90.0% of-Quota 02011000 Meat of bovine animals, fresh or 20% 25.0% 45.0% chilled: whole or half- carcasses**** 02012000 Fresh Or Chilled Unboned 12% 30.0% 42.0% Bovine Meat (Excl. Carcasses)**** 02013000 Fresh Or Chilled Boneless 12% 30.0% 42.0% Bovine Meat**** 02021000 Frozen Bovine Carcasses & Half 25% 25.0% 50.0% Carcasses**** 02022000 Frozen Unboned Bovine Meat 12% 30.0% 42.0% (Excl. Carcasses)**** 02023000 Frozen Boneless Bovine 12% 30.0% 42.0% Meat**** 02031110 Fresh or chilled, suckling 20% 25.0% 45.0% pig: whole or half- carcasses**** 02031190 Fresh or chilled, other meat of 20% 25.0% 45.0% swine: whole or half- carcasses**** 5 02031200 Fresh Or Chilled Unboned 20% 25% 30.0% 75.0% Hams, Shoulders & Cuts**** 02031900 Other Fresh Or Chilled Swine 20% 25% 30.0% 75.0% Meat**** 02032110 Frozen, suckling pig: whole or 12% 25.0% 37.0% half-carcasses**** 02032190 Frozen Swine, whole or half- 12% 25% 25.0% 62.0% carcasses, Nes**** 02032200 Frozen Unboned Hams, 8%* 25% 30.0% 63.0% Shoulders & Cuts Thereof Of **** 02032900 Other Frozen Swine Meat**** 8%* 25% 30.0% 63.0% 02042200 Fresh Or Chilled Unboned Meat 15% 30.0% 45.0% Of Sheep**** 02062900 Frozen Edible Bovine Offal 12% 30.0% 42.0% (Excl. Tongues & Livers**** 02063000 Edible swine offal, fresh of 20% 30.0% 50.0% chilled**** 02064100 Frozen Swine Livers**** 20% 25% 30.0% 75.0% 02064900 Frozen Edible Swine Offal**** 12% 25% 30.0% 67.0% (Excl. Livers) 02071100 Chickens, not cut in pieces, 20% 30.0% 50.0% fresh or chilled 02071200 Frozen Whole Chickens 1.3 30.0% 1.3 RMB/kg RMB/kg+30.0% 02071311 Fresh Or Chilled Cuts Of 20% 30.0% 50.0% Chicken, With Bone 02071319 Fresh or chilled cuts of chicken, 20% 30.0% 50.0% other 02071321 Fresh or chilled wing of chicken 20% 30.0% 50.0% (excluding wingtips 02071329 Fresh or chilled offal of chicken, 20% 30.0% 50.0% other 02071411 Frozen Chicken Cuts, With 0.6 30.0% 0.6 Bone RMB/kg RMB/kg+30.0% 02071419 Frozen Chicken Cuts, Nes 0.7 30.0% 0.7 RMB/kg RMB/kg+30.0% 02071421 Frozen Midjoint Wing Of