Tariff increase in textile and apparel industry under the influence of Sino-U.S. trade frictions

May 29, 2019  |  by CT
On May 13, 2019, the Office of the U.S. Trade Representative (USTR) announced a 25% tariff list (List 4) for about USD 325 billion of Chinese goods, covering apparel (HS61, 62), most household textiles (HS63, 94) and some textile machinery products (HS84), which involve more than USD 40 billion worth of products exported by our industry to the United States each year. The United States is currently seeking public opinion on the list and will hold a public hearing on 17 June. Whether to impose a 25% tariff on the USD 300 billion list of Chinese goods will be decided by the latest progress of Sino-U.S. trade negotiations after public hearings.
On May 9, the U.S. government announced that, starting from May 10, 2019, the tariff rate on goods imported from China with a list of USD 200 billion (List 3) has increased from 10% to 25%, which includes almost all kinds of textile yarns, fabrics, knitting, industrial manufactured goods and some household textiles and textile machinery products. Their annual exports to the United States exceed USD 4 billion. So far, the two lists have covered almost all the textile and apparel products exported by our industry to the United States in a complementary form, totaling about USD 45 billion.
The above measures led to the escalation of Sino-U.S. economic and trade frictions, violated the consensus of the two sides on resolving trade differences through consultation, harmed the interests of both sides, and did not meet the general expectations of the international community. In order to safeguard the multilateral trading system and safeguard its legitimate rights and interests, the Customs Tariff Commission of the State Council has decided to raise the tariff rate on some of the USD 60 billion list of U.S. goods that have been imposed tariffs since 00:00 on June 1, 2019 by 25%, 20% or 10% respectively, and to continue to impose 5% tariffs on previously imposed 5% tariff items.
In addition, there are many chemical fiber raw materials and accessories commodities to maintain a 5% tariff rate, which has a certain impact on the regenerated cellulose fiber industry and nylon 66 industry.
Trial removal of goods subject to tariff increases imposed by the United States
Recently, the Customs Tariff Commission of the State Council issued a public announcement, trying to exclude goods subject to tariffs imposed by the United States. According to the announcement, the Customs Tariff Commission of the State Council accepts the application of relevant stakeholders, and on the basis of examining the application one by one, excludes some eligible commodities from the scope of tariff imposed by the United States, and formulates and publishes a list of exclusions.
For the goods in the exclusion list, within one year from the date of the implementation of the exclusion list, no more tariffs imposed by China against the U.S. “Section 301” sanctions, if the conditions for tax refund are met, the levied customs duties will be refunded, and the relevant importing enterprises shall apply to the Customs within six months from the date of the publication of the exclusion list. For goods whose tariffs have been suspended or suspended prior to the publication of the exclusion list, the tariffs imposed shall not be refunded.
Ministry of Foreign Affairs: China will never yield to external pressure
China has always maintained a calm and constructive attitude towards the capricious and extreme pressure exerted by the U.S. side. On May 13, a spokesman for the Ministry of Foreign Affairs of China responded at a regular press conference that the imposition of tariffs could not solve any problems. China would never yield to external pressure and was determined to be able to safeguard its legitimate rights and interests. On May 14, China reiterated that launching a trade war would only harm others and harm itself. China did not want to fight a trade war, but was never afraid to fight it.




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