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November 16, 2020
2020-2706

EU publishes list of US products subject to additional duties following WTO authorization

The World Trade Organization (WTO), on 13 October 2020, authorized the European Union (EU) to impose countermeasures on United States (US)-origin products due to illegal US subsidies granted to the US aircraft industry. The WTO determined that the level of countermeasures "commensurate with the degree and nature of the adverse effects determined to exist" amounts to nearly US$4 billion annually.

Following the WTO's authorization, the EU was initially reluctant to impose countermeasures on US products as it was waiting for the outcome of the negotiations with the US before moving forward with countermeasures. However, on 9 November 2020, the EU decided to impose countermeasures on the US by increasing tariffs on US exports into the EU worth US$4 billion.1

For background on the WTO authorization, see EY Global Tax Alert, EU imposes countermeasures on US origin goods, dated 11 November 2020.

This Alert provides a full list of the US exports subject to increased tariffs.

Products subject to additional tariffs

Following indications by the EU to seek retaliation due to the US' continued imposition of tariff measures, on 10 November 2020, the EU announced two Annexes of products that the countermeasures would be applied to, in the form of punitive duties to be assessed at time of entry. Annex I covered parts of civil aircrafts and carried a punitive tariff of 15%; Annex II covered various US origin goods and carried a punitive tariff of 25%. Products impacted by the measures under Annex II include:

  • Chocolate bars imported into the EU under Harmonized Tariff Schedule (HTS) 1806.31.00
  • Tomato ketchup imported into the EU under HTS 2103.20.00
  • Rum imported into the EU under HTS 2208.40.11
  • Vodka imported into the EU under HTS 2208.60.11
  • Light air-cured tobacco imported into the EU under HTS 2401.10.35
  • Agricultural tractors and forestry tractors imported into the EU under HTS 8701.91.10

The complete listing of products is provided below:

TARIC code

Description

Tariff

8802400013

Aeroplanes and other aircraft, of an unladen weight exceeding 15 000 kg, for civil use, new, of an unladen weight exceeding 38 000 kg but not exceeding 100 000 kg

15%

8802400015

Aeroplanes and other aircraft, of an unladen weight exceeding 15 000 kg, for civil use, new, of an unladen weight exceeding 100 000 kg but not exceeding 124 000 kg

15%

8802400017

Aeroplanes and other aircraft, of an unladen weight exceeding 15 000 kg, for civil use, new, of an unladen weight exceeding 124 000 kg but not exceeding 132 000 kg

15%

8802400019

Aeroplanes and other aircraft, of an unladen weight exceeding 15 000 kg, for civil use, new, of an unladen weight exceeding 132 000 kg but not exceeding 140 000 kg

15%

8802400021

Aeroplanes and other aircraft, of an unladen weight exceeding 15 000 kg, for civil use, new, of an unladen weight exceeding 140 000 kg

15%

CN code

Description

Tariff

0301 11 00

live ornamental freshwater fish

25%

0301 19 00

live ornamental fish (excl. freshwater)

25%

0303 13 00

frozen, atlantic salmon "salmo salar" and danube salmon "hucho"

25%

0304 81 00

frozen fillets of pacific salmon "oncorhynchus nerka, oncorhynchus gorbuscha, oncorhynchus keta, oncorhynchus tschawytscha, oncorhynchus kisutch, oncorhynchus masou and oncorhynchus rhodurus", atlantic salmon "salmo salar" and danube salmon "hucho"

25%

0305 41 00

smoked pacific salmon "oncorhynchus nerka, oncorhynchus gorbuscha, oncorhynchus keta, oncorhynchus tschawytscha, oncorhynchus kisutch, oncorhynchus masou and oncorhynchus rhodurus", atlantic salmon "salmo salar" and danube salmon "hucho", incl. fillets (excl. offal)

25%

0307 22 90

scallops, incl. queen scallops, of the genera pecten, chlamys or placopecten, frozen, even in shell (excl. coquilles st jacques "pecten maximus")

25%

0406 10 50

fresh cheese "unripened or uncured cheese", incl. whey cheese and curd of a fat content, by weight, of <= 40% (excl. mozzarella)

25%

0406 90 21

cheddar (excl. grated or powdered and for processing)

25%

0406 90 86

Other cheese, exceeding 47% but not exceeding 52% of fat content, "Tulum Peyniri", made from sheep's milk or 'buffalo' milk, in packings of less than 10 kg and Other

25%

0714 20 10

sweet potatoes, fresh, whole, for human consumption

25%

0714 20 90

sweet potatoes, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets (excl. fresh whole sweet potatoes used for human consumption)

25%

0802 90 85

nuts, fresh or dried, whether or not shelled or peeled (excl. coconuts, brazil nuts, cashew nuts, almonds, hazelnuts, walnuts, chestnuts "castania spp.", pistachios, pecans, areca "betel" nuts, cola nuts, pine nuts and macadamia nuts)

25%

0805 40 00

fresh or dried grapefruit

25%

0810 40 50

fresh fruit of species vaccinium macrocarpum and vaccinium corymbosum

25%

0811 90 50

fruit of species vaccinium myrtillus, uncooked or cooked by steaming or boiling in water, frozen, unsweetened

25%

0811 90 70

ruit of species vaccinium myrtilloides and vaccinium angustifolium, uncooked or cooked by steaming or boiling in water, frozen, unsweetened

25%

0905 10 00

vanilla, neither crushed nor ground

25%

0905 20 00

vanilla, crushed or ground

25%

1001 99 00

wheat and meslin (excl. seed for sowing, and durum wheat)

25%

1202 41 00

groundnuts, in shell (excl. seed for sowing, roasted or otherwise cooked)

25%

1202 42 00

groundnuts, shelled, whether or not broken (excl. seed for sowing, roasted or otherwise cooked)

25%

1212 29 00

seaweeds and other algae, fresh, chilled, frozen or dried, whether or not ground, unfit for human consumption

25%

1302 19 70

vegetable saps and extracts (excl. opium, liquorice, hops, vanilla oleoresin and genus ephedra)

25%

1302 39 00

mucilages and thickeners derived from vegetable products, whether or not modified (excl. from locust beans, locust bean seeds, guar seeds and agar-agar)

25%

1515 90 11

tung, jojoba and oiticica oils, myrtle and japan wax and their fractions, whether or not refined, but not chemically modified

25%

1515 90 29

crude tobacco-seed oil (excl. for technical or industrial uses)

25%

1515 90 39

tobacco-seed oil and its fractions, whether or not refined, but not chemically modified (excl. for technical or industrial uses and crude)

25%

1515 90 40

crude fixed vegetable fats and oils and their fractions, for technical or industrial uses (excl. for production of foodstuffs, soya-bean, groundnut, olive, palm, sunflower-seed, safflower, cotton-seed, coconut, palm kernel, babassu, rape, colza and mustard, linseed, maize, castor, tung, sesame, jojoba, oiticica, myrtle, japan wax and tobacco-seed oil)

25%

1515 90 51

solid crude fixed vegetable fats and oils, in immediate packings of <= 1 kg (excl. for technical or industrial uses and soya-bean, groundnut, olive, palm, sunflower-seed, safflower, cotton-seed, coconut, palm kernel, babassu, rape, colza and mustard, linseed, maize, castor, tung, sesame, jojoba, oiticica, myrtle, japan wax and tobacco seed oil)

25%

1515 90 59

crude fixed vegetable fats and oils, in immediate packings of a content of > 1 kg, or crude, liquid (excl. those for technical or industrial uses; soya-bean, peanut, olive, palm, sunflower, safflower, cotton-seed, coconut, palm kernel, babassu, rubsen, mustard seed, linseed, maize germ, castor, tung, sesame, jojoba or oiticica oil; myrtle wax, japan wax and tobacco seed oil)

25%

515 90 60

vegetable fats and oils and their fractions, whether or not refined (excl. chemically modified) for technical or industrial uses (excl. for the manufacture of foodstuffs; crude fats and oils; soya-bean, peanut, olive, palm, sunflower, safflower, cotton-seed, coconut, palm kernel, babassu, rubsen, mustard seed, linseed, maize germ, castor, tung, sesame, jojoba or oiticica oil; myrtle wax, japan wax and tobacco seed oil)

25%

1515 90 91

solid fixed vegetable fats and oils and their fractions, whether or not refined, but not chemically modified, in immediate packings of <= 1 kg, n.e.s. (excl. for technical or industrial uses and crude fats and oils)

25%

1515 90 99

solid fixed vegetable fats and oils and their fractions, whether or not refined, but not chemically modified, in immediate packings of > 1 kg, or liquid, n.e.s. (excl. for technical or industrial uses and crude fats and oils)

25%

1703 10 00

cane molasses resulting from the extraction or refining of sugar

25%

1806 10 15

cocoa powder, containing added sugar or other sweetening matter but containing no sucrose or containing < 5% by weight of sucrose, incl. inverted sugar expressed as sucrose or isoglucose expressed as sucrose

25%

1806 10 20

cocoa powder, containing added sugar or other sweetening matter, containing >= 5% but < 65% by weight of sucrose, incl. inverted sugar expressed as sucrose or isoglucose expressed as sucrose

25%

1806 10 30

sweetened cocoa powder, containing >= 65% but < 80% sucrose, incl. inverted sugar expressed as sucrose or isoglucose expressed as sucrose

25%

1806 10 90

sweetened cocoa powder, containing >= 80% sucrose, incl. inverted sugar expressed as sucrose or isoglucose expressed as sucrose

25%

1806 20 10

chocolate and other food preparations containing cocoa, in blocks, slabs or bars weighing > 2 kg or in liquid, paste, powder, granular or other bulk form, in containers or immediate packings of a content > 2 kg, containing >= 31%, by weight, of cocoa butter or containing a combined weight of >= 31% of cocoa butter and milkfat (excl. cocoa powder)

25%

1806 20 30

chocolate and other food preparations containing cocoa, in blocks, slabs or bars weighing > 2 kg or in liquid, paste, powder, granular or other bulk form, in containers or immediate packings of a content > 2 kg, containing a combined weight of >= 25% but < 31% of cocoa butter and milkfat (excl. cocoa powder)

25%

1806 20 50

chocolate and other food preparations containing cocoa, in blocks, slabs or bars weighing > 2 kg or in liquid, paste, powder, granular or other bulk form, in containers or immediate packings of a content > 2 kg, containing >= 18% by weight but < 31% by weight of cocoa butter (excl. cocoa powder)

25%

1806 20 80

chocolate flavour coating in containers or immediate packings of a content > 2 kg

25%

1806 20 95

chocolate and other food preparations containing cocoa, in blocks, slabs or bars weighing > 2 kg or in liquid, paste, powder, granular or other bulk form, in containers or immediate packings of a content > 2 kg, containing < 18% by weight of cocoa butter (excl. cocoa powder, chocolate flavour coating and chocolate milk crumb)

25%

1806 31 00

chocolate and other preparations containing cocoa, in blocks, slabs or bars of <= 2 kg, filled

25%

1806 32 10

chocolate and other preparations containing cocoa, in blocks, slabs or bars of <= 2 kg, with added cereal, fruit or nuts (excl. filled)

25%

1806 32 90

chocolate and other preparations containing cocoa, in blocks, slabs or bars of <= 2 kg (excl. filled and with added cereal, fruit or nuts)

25%

1806 90 11

chocolate and chocolate products in the form of chocolates, whether or not filled, containing alcohol

25%

1806 90 19

chocolate and chocolate products in the form of chocolates, whether or not filled, not containing alcohol

25%

2008 19 99

nuts and other seeds, incl. mixtures, prepared or preserved, in immediate packings of a content of <= 1 kg (excl. prepared or preserved with vinegar, preserved with sugar but not laid in syrup, jams, fruit jellies, marmalades, fruit puree and pastes, obtained by cooking, groundnuts, roasted nuts, and coconuts, cashew nuts, brazil nuts, areca "betel" nuts, colanuts and macadamia nuts and mixtures containing >= 50% by weight of tropical nuts)

25%

2008 30 59

citrus fruits, prepared or preserved, containing added sugar but no added spirit, in immediate packings of a net content of > 1 kg (excl. grapefruit segments, mandarins, incl. tangerines and satsumas, clementines, wilkings and similar citrus hybrids)

25%

2008 30 90

citrus fruit, prepared or preserved, not containing added spirit or added sugar

25%

2009 11 11

frozen orange juice, unfermented, brix value > 67 at 20°c, value of <= 30 euro per 100 kg, whether or not containing added sugar or other sweetening matter (excl. containing spirit)

25%

2009 11 19

frozen orange juice, unfermented, brix value > 67 at 20°c, value of > 30 euro per 100 kg, whether or not containing added sugar or other sweetening matter (excl. containing spirit)

25%

2009 11 91

frozen orange juice, unfermented, brix value <= 67 at 20°c, value of <= 30 euro per 100 kg, with > 30% added sugar (excl. containing spirit)

25%

2009 11 99

frozen orange juice, unfermented, brix value <= 67 at 20°c, whether or not containing added sugar or other sweetening matter (excl. containing spirit, with a value of <= 30 euro per 100 kg and with > 30% added sugar)

25%

2009 21 00

grapefruit juice, unfermented, brix value <= 20 at 20°c, whether or not containing added sugar or other sweetening matter (excl. containing spirit)

25%

2009 29 19

grapefruit juice, unfermented, brix value > 67 at 20°c, value of > 30 euro per 100 kg, whether or not containing added sugar or other sweetening matter (excl. containing spirit)

25%

2101 11 00

extracts, essences and concentrates, of coffee

25%

2103 20 00

tomato ketchup and other tomato sauces

25%

2103 90 90

sauces and preparations therefor, mixed condiments and mixed seasonings (excl. soya sauce, tomato ketchup and other tomato sauces, liquid mango chutney and aromatic bitters of subheading 2103.90.30)

25%

2104 10 00

soups and broths and preparations therefor

25%

2106 90 59

flavoured or coloured sugar syrups (excl. isoglucose, lactose, glucose and maltodextrine syrups)

25%

2205 10 10

vermouth and other wine of fresh grapes, flavoured with plants or aromatic substances, in containers holding <= 2 l, of actual alcoholic strength of <= 18% vol

25%

2208 20 29

spirits obtained by distilling grape wine or grape marc, in containers holding <= 2 l (excl. cognac, armagnac, grappa and brandy de jerez)

25%

2208 20 40

raw distillate, in containers holding > 2 l

25%

2208 20 89

spirits obtained by distilling grape wine or grape marc, in containers holding > 2 l (excl. raw distillate, cognac, armagnac, grappa and brandy de jerez)

25%

2208 40 11

rum with a content of volatile substances (other than ethyl and methyl alcohol) of >= 225 g/hl of pure alcohol "with a 10% tolerance", in containers holding <= 2 l

25%

2208 40 39

rum and other spirits obtained by distilling fermented sugar-cane products, of a value <= 7,9 euro/l of pure alcohol, in containers holding <= 2 l (excl. rum with a content of volatile substances [other than ethyl and methyl alcohol] of >= 225 g/hl of pure alcohol "with a 10% tolerance")

25%

2208 40 51

rum with a content of volatile substances (other than ethyl and methyl alcohol) of >= 225 g/hl of pure alcohol "with a 10% tolerance", in containers holding > 2 l

25%

2208 40 91

rum and other spirits obtained by distilling fermented sugar-cane products, of a value > 2 euro/l of pure alcohol, in containers holding > 2 l (excl. rum with a content of volatile substances [other than ethyl and methyl alcohol] of >= 225 g/hl of pure alcohol "with a 10% tolerance")

25%

2208 40 99

rum and other spirits obtained by distilling fermented sugar-cane products, of a value <= 2 euro/l of pure alcohol, in containers holding > 2 l (excl. rum with a content of volatile substances [other than ethyl and methyl alcohol] of >= 225 g/hl of pure alcohol "with a 10% tolerance")

25%

2208 60 11

vodka of an alcoholic strength of <= 45,4% vol, in containers holding <= 2 l

25%

2208 60 19

vodka of an alcoholic strength of <= 45,4% vol, in containers holding > 2 l

25%

2208 60 91

vodka of an alcoholic strength of > 45,4% vol, in containers holding <= 2 l

25%

2208 60 99

vodka of an alcoholic strength of > 45,4% vol, in containers holding > 2 l

25%

2303 20 10

beet-pulp

25%

2401 10 35

light air-cured tobacco, unstemmed or unstripped

25%

2401 10 60

sun-cured oriental type tobacco, unstemmed or unstripped

25%

2401 10 70

dark air-cured tobacco, unstemmed or unstripped

25%

2401 10 85

flue-cured tobacco, unstemmed or unstripped

25%

2401 10 95

tobacco, unstemmed or unstripped (excl. light air-cured, sun-cured oriental, dark air-cured and flue-cured

25%

2401 20 35

partly or wholly stemmed or stripped light air-cured tobacco, otherwise unmanufactured

25%

2401 20 60

partly or wholly stemmed or stripped sun-cured oriental type tobacco, otherwise unmanufactured

25%

2401 20 70

partly or wholly stemmed or stripped dark air-cured tobacco, otherwise unmanufactured

25%

2401 20 85

partly or wholly stemmed or stripped flue-cured tobacco, otherwise unmanufactured

25%

2401 20 95

partly or wholly stemmed or stripped tobacco, otherwise unmanufactured (excl. light air-cured, sun-cured

25%

2401 30 00

tobacco refuse

25%

3301 19 20

terpenic essential oils of citrus fruit, incl. concretes and absolutes (excl. those of seet and bitter orange and lemon)

25%

3301 25 10

terpenic oils of mints, incl. concretes and absolutes (excl. those of peppermint "mentha piperita")

25%

3301 25 90

terpeneless oils of mints, incl. concretes and absolutes (excl. those of peppermint "mentha piperita")

25%

3502 90 20

albumins, unfit, or to be rendered unfit, for human consumption (excl. egg albumin and milk albumin [incl. concentrates of two or more whey proteins containing by weight > 80% whey proteins, calculated on the dry matter])

25%

3502 90 70

albumins, fit for human consumption (excl. egg albumin and milk albumin [incl. concentrates of two or more whey proteins containing by weight > 80% whey proteins, calculated on the dry matter])

25%

3504 00 10

Peptones and their derivatives; other protein substances and their derivatives, not elsewhere specified or included; hide powder, whether or not chromed, Concentrated milk proteins specified in additional note 1 to this chapter

25%

3504 00 90

Peptones and their derivatives; other protein substances and their derivatives, not elsewhere specified or included; hide powder, whether or not chromed, Other

25%

3904 10 00

poly"vinyl chloride", in primary forms, not mixed with any other substances

25%

3920 10 23

non-cellular polyethylene film of a thickness of >= 20 micrometres but <= 40 micrometres, for the production of photoresist film used in the manufacture of semiconductors or printed circuits

25%

3920 10 24

stretch film of non-cellular polyethylene, not printed, of a thickness of <= 0,125 mm and of a specific gravity of < 0,94

25%

3920 10 81

synthetic paper pulp in the form of moist sheets made from unconnected finely branched non-cellular polyethylene fibrils, whether or not blended with cellulose fibres in a quantity <= 15%, containing poly(vinyl alcohol) dissolved in water as the moistening agent, with a thickness of > 0,125 mm

25%

4202 19 10

trunks, suitcases, vanity cases, executive-cases, briefcases, school satchels and similar containers, with outer surface of aluminium

25%

4202 19 90

trunks, suitcases, vanity cases, executive-cases, briefcases, school satchels and similar containers (excl. with outer surface of leather, composition leather, patent leather, plastics, textile materials or aluminium)

25%

4202 21 00

handbags, whether or not with shoulder straps, incl. those without handles, with outer surface of leather, composition leather or patent leather

25%

4202 22 10

handbags, whether or not with shoulder straps, incl. those without handles, with outer surface of plastic sheeting

25%

4202 22 90

handbags, whether or not with shoulder straps, incl. those without handles, with outer surface of textile materials

25%

4202 32 10

wallets, purses, key-pouches, cigarette-cases, tobacco-pouches and similar articles carried in the pocket or handbag, with outer surface of plastic sheeting

25%

4202 32 90

wallets, purses, key-pouches, cigarette-cases, tobacco-pouches and similar articles carried in the pocket or handbag, with outer surface of textile materials

25%

4202 91 10

travelling-bags, toilet bags, rucksacks and sports bags with outer surface of leather, composition leather or patent leather

25%

4202 91 80

insulated food or beverage bags, shopping bags, map-cases, tool bags, jewellery boxes, cutlery cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers, with outer surface of leather, composition leather or of patent leather (excl. trunks, briefcases, school satchels and similar; articles normally carried in the pocket or in the handbag; travelling, toilet or sports bags; rucksacks)

25%

4202 92 11

travelling-bags, toilet bags, rucksacks and sports bags, with outer surface of plastic sheeting

25%

4202 92 15

musical instrument cases with outer surface of plastic sheeting

25%

4202 92 19

insulated food or beverage bags, shopping bags, map-cases, tool bags, jewellery boxes, cutlery cases, binocular cases, camera cases, gun cases, holsters and similar containers, with outer surface of plastic sheeting (excl. travelling-cases, briefcases, satchels and similar containers, bag or handbag articles, travelling-bags, toilet bags, sports bags, rucksacks and musical instrument cases)

25%

4202 92 91

travelling-bags, toilet bags, rucksacks and sports bags, with outer surface of textile materials

25%

5203 00 00

Cotton, carded or combed

25%

8429 51 10

self-propelled front-end shovel loaders specially designed for underground use

25%

8429 51 91

self-propelled front-end crawler shovel loaders (other than specially designed for underground use)

25%

8429 51 99

self-propelled front-end shovel loaders (other than specially designed for underground use or crawler shovel loaders)

25%

8701 91 10

agricultural tractors and forestry tractors, wheeled, of an engine power <= 18 kw (excl. pedestrian-controlled tractors)

25%

8701 91 90

tractors, of an engine power <= 18 kw (excl. those of heading 8709, pedestrian-controlled tractors, road tractors for semi-trailers, track-laying tractors and wheeled agricultural/forestry tractors)

25%

8701 92 90

tractors, of an engine power > 18 kw but <= 37 kw (excl. those of heading 8709, pedestrian-controlled tractors, road tractors for semi-trailers, track-laying tractors and wheeled agricultural/forestry tractors)

25%

8701 93 10

agricultural tractors and forestry tractors, wheeled, of an engine power > 37 kw but <= 75 kw (excl. pedestrian-controlled tractors)

25%

8701 93 90

tractors, of an engine power > 37 kw but <= 75 kw (excl. those of heading 8709, pedestrian-controlled tractors, road tractors for semi-trailers, track-laying tractors and wheeled agricultural/forestry tractors)

25%

8701 94 10

agricultural tractors and forestry tractors, wheeled, of an engine power > 75 kw but <= 130 kw (excl. pedestrian-controlled tractors)

25%

8701 94 90

tractors, of an engine power > 75 kw but <= 130 kw (excl. those of heading 8709, pedestrian-controlled tractors, road tractors for semi-trailers, track-laying tractors and wheeled agricultural/forestry tractors)

25%

8705 90 80

special purpose motor vehicles (excl. those principally designed for the transport of persons or goods, and concrete-mixer lorries, fire fighting vehicles, mobile drilling derricks, crane lorries and concrete-pumping vehicles)

25%

8714 91 10

frames for cycles (excl. motorcycles)

25%

8714 91 30

front forks for cycles (excl. motorcycles)

25%

8714 91 90

parts of front forks, for cycles (excl. motorcycles)

25%

9504 20 00

billiards of all kinds and accessories

25%

9504 30 10

games with screen, operated by coins, banknotes, bank cards, tokens or by other means of payment

25%

9504 30 20

games without screen, operated by coins, banknotes, bank cards, tokens or by other means of payment (excl. bowling alley equipment)

25%

9504 30 90

parts of games, operated by coins, banknotes, bank cards, tokens or by other means of payment (excl. of bowling alley equipment)

25%

9504 50 00

video game consoles and machines (excl. operated by any means of payment)

25%

9504 90 10

electric car racing sets, having the character of competitive games

25%

9504 90 80

tables for casino games, automatic bowling alley equipment, and other funfair, table or parlour games, incl. pintables (excl. operated by any means of payment, billiards, video game consoles and machines, playing cards and electric car racing sets having the character of competitive games)

25%

9506 91 10

exercising apparatus with adjustable resistance mechanisms

25%

9506 91 90

articles and equipment for general physical exercise, gymnastics or athletics (excl. exercising apparatus with adjustable resistance mechanisms)

25%

Actions for business

EU tariffs are immediately applicable. Companies may consider options to mitigate the impact of any potential duties, such as:

  • Utilizing a customs warehouse or free trade zone (FTZ) to provide tariff deferral, and eliminate tariffs on products re-exported
  • Using inward processing regimes
  • Reviewing the country of origin rules and applied tariff codes to prevent unintended application of potential countermeasures and apply for a binding origin information and/or binding tariff information decision to obtain certainty about the country of origin and classification of the imported goods
  • Determining the viability of alternative sourcing and/or manufacturing
  • Utilizing techniques to reduce the customs value of EU imports such as changing the importer of record, value unbundling or adjustments to transfer prices

Similarly, companies should expect US action to increase the list of EU/UK origin goods that will be subject to US duties. Companies with potentially impacted goods should consider:

  • Reviewing options to mitigate the impact of any potential duties, such as:
    • Utilizing US Foreign-Trade Zones or bonded warehouse storage mechanisms to provide tariff deferral, and eliminate tariffs on products re-exported
    • Structuring transactions to obtain refunds of the Section 301 tariffs paid through the US drawback program
    • Utilizing techniques to reduce the customs value of US imports such as first sale for export or adjustments to transfer prices
  • Assessing whether US customs bonds are adequate to support any potential increase in tariffs.

———————————————
ENDNOTE

1 https://ec.europa.eu/commission/presscorner/detail/en/IP_20_2048.

———————————————
CONTACTS

For additional information with respect to this Alert, please contact the following:

EY Global Trade

  • Jeroen Scholten
    jeroen.scholten@nl.ey.com
  • Walter de Wit
    walter.de.wit@nl.ey.com
  • Aron Nagy
    aron.nagy@hu.ey.com
  • Robert Böhm
    robert.boehm@de.ey.com
  • Pedro Gonzalez-Gaggero
    pedro.gonzalez-gaggero@es.ey.com
  • Marc Bunch
    mbunch@uk.ey.com
  • Sally Jones
    sally.jones@uk.ey.com
  • Neil Byrne
    neil.byrne@ie.ey.com
  • Franky De Pril
    franky.de.pril@be.ey.com

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ATTACHMENT

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