USICA resources

The United States Innovation and Competition Act (USICA) was passed by the U.S. Senate in June 2021 to counter China’s growing influence in science, technology, and advanced manufacturing.

What’s included in the bill

Major components of the bill include investments in domestic manufacturing of “strategic sectors” like computer chips and PPE.

Also included is the Trade Act of 2021, which would reinstate certain exclusions to Section 301. Additionally, under USICA, importers of Generalized System of Preferences (GSP) products could be retroactively refunded for certain duties paid and no longer have to pay duties and tariffs on GSP imports until January 1, 2027, when GSP will expire again.

Additionally, USICA would renew the Miscellaneous Tariff Bill (MTB) program through December 31, 2023—and be retroactive for four months before the bill’s enactment—providing temporary tariff reductions and suspensions on certain U.S. imports.

Determine the potential impact to your business

Uncover potential duty refunds if the USICA passes into law* with our U.S. Tariff Search Tool. Instantly search by Harmonized Tariff Schedule (HTS) and estimate your retroactive duty refund amount today.

America COMPETES resources

The U.S. House of Representatives passed the America COMPETES Act in February 2022, in response to the Senate’s USICA.

What’s included in the bill

Under the America COMPETES Act, GSP products would be renewed for a shorter timeframe—until January 1, 2024. The MTB program would be renewed through approximately the same period as under USICA—through December 31, 2023.

One provision only included in this bill is the Importer Security & Fairness Act, which addresses de minimis value shipments and would prohibit certain goods—such as goods that are both non-market economies and on the U.S. Trade Representative’s (USTR) watch list from using de minimis. The current de minimis value in the United States is $800, which means one can import shipments valued at $800 or less without paying duties, taxes, or fees.

Notably, the America COMPETES Act does not contain provisions surrounding the Section 301 China tariffs.

*The USICA and America COMPETES are currently bills and have not yet become law. Aspects of the bills can change and amendments can be made. The information provided herein does not guarantee any refund and undue reliance should not be placed on it. Proper review and thorough analysis are required to determine outcome.

U.S. Tariff Search Tool

Products facing additional tariffs

$375 billion worth of products across variety of capital, intermediate inputs, and consumer goods categories. There are four lists of tariffs imposed thus far.

Additional duty rates

Additional duty rates range from 7.5% (list 4a – $125B) to 25% (lists 1-3 $250B).

Active trade measure?

Yes. Ongoing since July 2018.

View information regarding the products affected by this trade measure

Review the lists of exclusions granted to some products.

Get more details about the situation

Exclusion opportunity

The USTR created a product exclusion process, whereby firms could petition for an exemption from the Section 301 tariff increases for specific imports. The USTR stated that product exclusion determinations would be made on a case-by-case basis.

Comment/exclusion requests/extension requests

The period to request an exclusion has closed, and there are no more open dockets to request extension of an exclusion. The USTR stated the following at the Senate Hearing regarding the president’s 2020 Trade Agenda in June 2020: The USTR is not considering automatic extension of previously approved exclusions. Rather, prior to a group of exclusions expiring, USTR has issued a Federal Register Notice asking the public to comment on whether to extend these particular exclusions for up to one year.

Public dockets
USTR invites interested parties to submit comments on the public dockets listed.

Background Summary Report CRS – August 2020

 

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All content and materials discussed herein are for informational purposes only and do not constitute legal advice. You should always independently check the related Code of Federal Regulations (CFR) and, if needed, consult with the applicable Federal Agency (e.g. CBP, USTR) and/or external counsel where any question or doubt exists. Information on this site is the property of C.H. Robinson. Any transmission or use without C.H. Robinson’s permission and approval is not allowed or authorized.