From Washington

Leading Travel Goods CEOs Call on President/Congress to Take Action to Help Industry

Leading Travel Goods CEOs Call on President/Congress to Take Action to Help Industry

Today, May 7, 30 leading travel goods CEOs sent a letter to President Trump and Congress urging them to 1) fix the duty deferral so it helps our industry and 2) reconsider denied tariff exclusion petitions on travel goods (particularly luggage) under the Tranche 3 China 301 tariffs. The letter focuses on the unique nature of the industry and highlights the devastating impact this crisis has had on a small industry, mostly comprised of small businesses who depend on travel.

U.S. Government Announces More China Tariff Exclusions for Travel Goods

U.S. Government Announces More China Tariff Exclusions for Travel Goods

On May 4, the U.S. government announced that it has granted new exclusions from the punitive China tariffs for 3 travel goods items (no luggage) – certain MMF backpacks (see description on page 8, #27; see petition), certain MMF sewing machine covers (see description on page 8, #28; see petition), and certain MMF carrying cases (see description on page 8, #29; see petition). Anyone importing products matching these descriptions no longer pay the punitive 25% tariff (until Aug. 7, 2020). Previous tariffs paid are eligible for refunds, retroactive to Sept. 24, 2018. The U.S. government also denied thousands of petitions over the last week. In fact, USTR has reviewed all but 313 petitions (out of 30,283 petitions submitted) – denying 28,544 petitions to date and only granting 1,426 petitions to date (a 4.7% approval rate). For travel goods, out of 868 petitions filed, USTR has granted only 22 petitions, rejected 865 petitions, with only 3 petitions still pending review (a 2.5% approval rate).

U.S. Government Asks Whether China Tranche 3 Tariff Exclusions Should be Extended Beyond August 7

U.S. Government Asks Whether China Tranche 3 Tariff Exclusions Should be Extended Beyond August 7

The Office of the U.S. Trade Representative (USTR) requests comments on whether to extend the exclusions granted under the China Tranche 3 tariffs beyond the current August 7, 2020 expiration date. USTR has granted exclusions only on 22 specific travel goods items to date, out of 868 petitions (see travel goods exclusions 44-51 on pages 17163-17164, see exclusions 18-24 on pages 23125-23126, see exclusions 27-29 on pages 8-9, see exclusion 5 on page 9922, see exclusions 31-32 on pages 6678-6679, see exclusion 5 on page 550). Under Tranche 3, U.S. travel goods imports from China are subject to 25% punitive tariffs (in addition to normal tariffs), unless they have been granted an exclusion. Comments are due June 8. TGA plans to submit comments in support of extending the exclusions.