Tag: Section 301

USTR Seeks Public Input on Trade Measures Against China’s Maritime Dominance

The Office of the United States Trade Representative (USTR) is requesting public comments on proposed trade actions in response to China’s growing control over the global maritime, logistics, and shipbuilding industries. Following a Section 301 investigation, USTR determined that China’s policies have disadvantaged U.S. businesses and workers, prompting potential countermeasures.

Background of the Investigation

The investigation began in April 2024 after several U.S. labor unions filed a petition citing China’s long-standing efforts to dominate the shipbuilding and logistics sectors. Over the past three decades, China has significantly expanded its control, increasing its global shipbuilding market share from under 5% in 1999 to over 50% in 2023. Additionally, China now produces 95% of the world’s shipping containers and 86% of intermodal chassis, strengthening its influence over global trade logistics.

According to the USTR’s findings, China’s industrial policies have created unfair competitive conditions by displacing foreign businesses, limiting commercial opportunities, and posing economic security risks. As a result, USTR has determined that action is necessary under Section 301 of the Trade Act of 1974.

Proposed Trade Actions

To address China’s competitive advantage, the USTR is considering several measures:

  • Service Fees on Chinese Shipping Operators – A fee of up to $1,000,000 per vessel entry into U.S. ports for operators with Chinese-built vessels.
  • Tariffs on Operators Using Chinese-Built Ships – Additional fees for companies that operate or have pending orders for Chinese-manufactured vessels.
  • Incentives for U.S.-Built Vessels – A system of fee reimbursements for operators using U.S.-manufactured ships.
  • Shipping Restrictions on U.S. Exports – A phased-in requirement that a portion of U.S. goods be transported on U.S.-flagged and U.S.-built vessels.
  • Security Measures Against Chinese Logistics Platforms – Possible restrictions on the use of LOGINK, a Chinese-developed logistics data platform, due to security concerns.

Public Comment Period and Hearing Details

The USTR is encouraging stakeholders to provide feedback on these proposed actions. The key deadlines are as follows:

  • February 21, 2025 – Public comment period opens.
  • March 10, 2025 – Deadline to request participation in the public hearing.
  • March 24, 2025 – Deadline to submit written comments.
  • March 24, 2025 – Public hearing at the U.S. International Trade Commission in Washington, D.C.
  • Seven days after the hearing – Deadline for post-hearing rebuttal comments.

Comments and requests to participate in the hearing can be submitted via USTR’s online portal at https://comments.ustr.gov/s/ using docket numbers USTR–2025–0002 (for written comments) and USTR–2025–0003(for hearing requests).

What to Know About the New Section 301 Machinery Exclusion

The U.S. Trade Representative (USTR) has introduced a new exclusion process, allowing U.S. manufacturers to seek exemptions from Section 301 tariffs for certain machinery imported from China. This initiative aims to ease financial burdens while ensuring that manufacturers retain access to critical equipment. Businesses must adhere to detailed submission requirements, with each request evaluated on a case-by-case basis.

Overview of the Exclusion Process

  • Submission Window: Requests must be submitted by March 31, 2025, to be considered. If granted, exclusions will be valid until May 31, 2025.
  • Eligible Machinery: The exclusions cover specific items listed in Annex E, which contains the Harmonized Tariff Schedule (HTSUS) subheadings eligible for this process. These include a range of equipment vital to industries such as agriculture, textiles, heavy manufacturing, and renewable energy.

Procedures for Submitting Requests

Detailed application instructions are provided in Section C of the official guidance. Here are the key requirements for a complete submission:

  • Identify a Specific Product: Each exclusion request must reference a particular product by its HTSUS code and provide precise technical descriptions.
  • Provide Supporting Data: Applicants must supply evidence, such as past sourcing attempts outside of China, justifying why alternative sources are unavailable.
  • Rationale for Exclusion: Submissions must explain how the machinery supports domestic manufacturing and aligns with U.S. trade policies.
  • Case-by-Case Evaluation: USTR will review requests individually, with consideration given to how the product contributes to U.S. manufacturing and whether comparable items can be sourced from non-Chinese suppliers.

Strategic Considerations for Applicants

The exclusion process provides an essential opportunity for manufacturers to reduce operational costs, stabilize supply chains, and maintain competitiveness. However, precision in submissions is critical—only well-documented applications with clear justification will receive favorable consideration. With the March 2025 deadline fast approaching, businesses should begin gathering documentation immediately.

Contact Future Forwarding for expert assistance with your application. 

USTR Request for Public Comments on 301 Investigation

The Office of the US Trade Representative (USTR) announced in a formal notice to the Federal Register the next steps in the statutory four-year review of the Section 301 Tariffs. 

 

The USTR will be seeking public comments on the subject and as of  November 15, 2022, the USTR will open a portal here: https://comments.USTR.gov and interested parties have until January 17, 2022 to submit commentary.

Per the formal notice, the type of commentary sought is as follows:

 

  • The effectiveness of the actions in obtaining the elimination of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
  • The effectiveness of the actions in counteracting China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
  • Other actions or modifications that would be more effective in obtaining the
    elimination of or in counteracting China’s acts, policies, and practices related to
    technology transfer, intellectual property, and innovation.
  • The effects of the actions on the U.S. economy, including U.S. consumers.
  • The effects of the actions on domestic manufacturing, including in terms of capital investments, domestic capacity and production levels, industry concentrations, and profits.
  • The effects of the actions on U.S. technology, including in terms of U.S. technological leadership and U.S. technological development.
  • The effects of the actions on U.S. workers, including with respect to employment and wages.
  • The effects of the actions on U.S. small businesses.
  • The effects of the actions on U.S. supply chain resilience.
  • The effects of the actions on the goals of U.S. critical supply chains outlined in
    Executive Order 14017 and in subsequent reports and findings. 
  • Whether the actions have resulted in higher additional duties on inputs used for
    additional manufacturing in the United States than the additional duties on particular downstream product(s) or finished good(s) incorporating those inputs.

 

This is your chance to be heard and to make an impact on policy. You can read more at the USTR website here. 

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