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The struggle is real guys…Make it in the USA! My company typically creates all our apparel lines here in the Carolinas and US we have several factories we work in some small cities out of Wisconsin, to major fabric factories in LA.
I received this email from Bill Sells today who is SVP for Government/Public Affairs at the Sports & Fitness Industry Association discussion what we ALL need to know about the China Tariff Issue. Tariff deadlines are looming Sept 1st unless granted an Exclusion.
SFIA is hosting a webinar “China 301 Exclusion Requests: How to Obtain Favorable Results and Secure Duty Refunds” at 2:00 PM EST on September 12th. This webinar is FREE to everyone. Click Here to register.Sign up for FREE to everyone to https://register.gotowebinar.com/register/5926302104011380749

The information below is an excerpt from Bill Sells, Senior Vice President for Government and Public AffairsSports & Fitness Industry Association

As the U.S. and China try to negotiate a trade agreement, the trade war continues to escalate. On August 13, the USTR announced that the initial round of List 4 tariffs on the remaining $300 billion in Chinese imports would begin on September 1st. Unlike List 3, there will be no grace period for production-water. The 2nd round of List 4 tariffs will be implemented December 15th . Together, all Sports and fitness products made in China will be subject to the new tariffs, unless granted an Exclusion.
The U.S. action resulted in retaliatory tariffs and the Chinese adjusting the value of Chinese currency, which led to the U.S. labeling China a “currency manipulator”. Separately, the U.S. is seeking to strip China of its “developing economy” status at the WTO to deny it preferential trade treatment. With the rise in trade hostility between the two economic powers, there are a lot of moving parts and some confusion regarding the status of List 3 and List 4 tariffs. Please find a quick overview below to help you navigate these challenging times.
China Tariff Overview: What You Need to Know
Exemptions – remove products from the tariff list before the tariffs are enacted Exclusions – remove products from the tariff list after the tariff increase is enacted
1. SFIA Members not impacted by List 1 and List 2 tariffs, unless you imported targeted raw materials from China
2. List 3 Tariffs currently at 25% on $200 billion in imports. a. Limited number of SFIA Member products imported from China impacted: i. Batting Gloves ii. Baseball Gloves iii. Helmets iv. Hats
b. Products removed via List 3 Exemption Process: i. Helmets ii. Other non-active lifestyle products
c. List 3 Exclusion Process – 7,500+ Exclusions granted for List 1 and List 2 (compared to 1,200 exemptions) i. First Round of exclusions have been announced with a much higher rate of success
ii. September 31st, 2019 deadline for filing List 3 Exclusion petitions with USTR SFIA List 3 Exclusion petition process is in place. CLICK HERE for forms and information needed to participate in SFIA-led exclusion petitions for List 3.
3. List 4 Tariffs – 10% tariff on $300 billion in Chinese imports a. Two Lists i. List 4A Tariffs go into effect September 1st ii. List 4B Tariffs go into effect December 15th
b. List 4 Exemption Process i. SFIA filed 72 exemption petitions on behalf of members ii. SFIA testified before USTR on industry petitions in July iii. Fewer than 25 List 4 Exemptions approved – Bibles – Car Seats – Cranes – Chemicals – Certain Frozen Fish iv. Product-on-Water – No grace period – List 4 products must be in U.S. by September 1st – New List 4A tariffs will be applied to any product not entered for U.S. consumption by midnight August 31st, 2019
c. List 4 Exclusion Process (7,500 + exclusions granted for List 1 and List 2) i. USTR List 4 Exclusion process announcement pending ii. SFIA will provide a List 4 Exclusion process once details are announced

SFIA is looking forward to assisting you in limiting your tariff exposure during these challenging times.

Bill Sells – Senior Vice President for Government and Public AffairsSports & Fitness Industry Association

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