On March 4, 2021, the Office of the US Trade Representative (USTR) announced that the United States and the United Kingdom had agreed to a four-month suspension of tariffs related to the ongoing large civilian aircraft dispute. In a joint statement, the US and the UK said they are taking this action “to ease the burden on industry and take a bold, joint step towards resolving the longest running disputes at the World Trade Organization.” The joint statement continued:
The United Kingdom ceased applying retaliatory tariffs in the Boeing dispute from January 1, 2021 to de-escalate the issue and create space for a negotiated settlement to the Airbus and Boeing disputes.
The United States will now suspend retaliatory tariffs in the Airbus dispute from March 4, 2021, for four months. This will allow time to focus on negotiating a balanced settlement to the disputes, and begin seriously addressing the challenges posed by new entrants to the civil aviation market from non-market economies, such as China.
“This will benefit a wide range of industries on both sides of the Atlantic, and allow for focused settlement negotiations to ensure that our aerospace industries can finally see a resolution and focus on COVID recovery and other shared goals.”
On March 11, 2021, the USTR published in the Federal Register a notice modifying the action being taken in the investigation by suspending the additional tariffs on goods of the United Kingdom for a period of four months. The suspension is in accord with the above-mentioned joint US-UK statement that promotes a resolution of the large civil aircraft dispute. The additional duties on products of the United Kingdom covered by the action taken in this investigation are suspended for a period of four months as of 12:01 a.m. (EST) on March 4, 2021.
To give effect to the USTR’s determination, as specified in the Annex to the notice, the additional duties imposed by subheadings 9903.89.05, 9903.89.07, 9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40, 9903.89.43, 9903.89.46, 9903.89.49, 9903.89.50 and 9903.89.55, and as provided by their associated subchapter notes, will not apply to products of the United Kingdom that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EST on March 4, 2021, and before 12:01 a.m. EDT on July 4, 2021.
Any products of the United Kingdom that were admitted into a US foreign trade zone (FTZ) in privileged foreign status’ as defined in 19 CFR 146.41, before 12:01 a.m. EST on March 4, 2021, will remain subject to the applicable duties in subheadings 9903.89.05, 9903.89.07, 9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40, 9903.89.43, 9903.89.46, 9903.89.49, 9903.89.50 and 9903.89.55 upon entry for consumption.
Any product of the United Kingdom covered by subparagraph 2 of the Annex that is admitted into a US FTZ on or after 12:01 a.m. EST on March 4, 2021, and before 12:01 a.m. EDT on July 4, 2021, may be admitted in any status, as applicable, as defined in 19 CFR 146, Subpart D. The USTR will continue to consider the action taken in this investigation.
Annex
Effective with respect to articles the product of the United Kingdom that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 4, 2021, and entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on July 4, 2021:
1. Note 21(a) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified by deleting “For the purposes of subheadings 9903.89.05 through 9903.89.63,” and by inserting “Except as provided in note 21(u) of this subdivision, for the purposes of subheadings 9903.89.05 through 9903.89.63,” in lieu thereof.
2. Note 21 to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified by inserting in alphabetical order:
“(u) The U.S. Trade Representative has determined that additional duties imposed by subheadings 9903.89.05, 9903.89.07, 9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40, 9903.89.43, 9903.89.46, 9903.89.49, 9903.89.50 and 9903.89.55, and as provided by their associated subchapter notes, shall not apply to articles the product of the United Kingdom that are entered on or after 12:01 a.m. eastern standard time on March 4, 2021 and before 12:01 a.m. eastern daylight time on July 4, 2021.”
