Second list for tariffs waivers on 79 US products released

CHINA yesterday released a new list of 79 US products that will be exempted from the second round of additional tariffs on US products.

This is the second list of US goods to be excluded from the second round of tariff countermeasures against the US Section 301 measure, according to a statement from the Customs Tariff Commission of China’s State Council.

The exemption will be valid from May 19, 2020 to May 18, 2021, and tariffs that have already been levied will be refunded, according to the statement.

The latest list waives tariffs on products including medical disinfectant, rare-earth metal ores, and some silicon wafers used in the electronics industry.

It did not disclose the imports value of the products. China had earlier announced one-year exemptions beginning on February 28 involving 65 products from the United States, including aircraft parts and medical equipment. The statement said the remaining US products subject to China’s second round of additional tariffs will not be excluded for the time being.

For US products that are not on the first two lists, the commission advised enterprises to apply for the exemption of additional tariffs following a specific product list that applies to domestic firms which plan to sign deals to purchase and import these products from the United States in a market-oriented and commercial fashion.

China in February said it would grant the market-oriented exemptions for 696 US goods including key products such as soybeans and pork based on applications from companies.

On Friday, Vice Premier Liu He, who had led

China’s negotiations, spoke by phone with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin and said that both sides agreed to implementing the first phase of the deal signed in January.

Under the deal, the US agreed to postpone any further tariff increases, while China agreed to increase its purchases of US goods from a 2017 baseline by US$200 billion over two years, with about US$77 billion in increased purchases in the first year and US$123 billion in the second year.

“China and America reaching the Phase 1 trade deal benefits China, benefits the US and the whole world,” Zhao Lijian, spokesman at the foreign ministry, said. “Both sides should carry out the agreement while sticking to the principles of equality and mutual respect.”

(Agencies)