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New Statistical Breakouts Created to Administer Additional Tariff on Certain IT Products

The U.S. International Trade Commission has created effective from 24 September two ten-digit statistical reporting numbers (HTSUS 8517.62.0020 and 8517.62.0090) to administer the recently-announced Section 301 tariff on certain mainland Chinese products of subheading 8517.62.

Slated to enter into force on 24 September, the additional tariff will cover, among many other products, modems of a kind used with data processing machines of heading 8471 classified under existing statistical breakout 8517.62.0010 as well as switching and routing apparatus classified under new statistical breakout 8517.62.0020. All other products of subheading 8517.62, which will now fall under new statistical breakout 8517.62.0090, are not subject to the additional tariff.

Mainland China is by far the largest U.S. supplier of goods classified under subheading 8517.62, with total shipments of US$22.8 billion in 2017 and US$12.7 billion during January-July 2018. Of those, less than two percent fell under existing statistical breakout 8517.62.0010 while the rest fell under the statistical breakout for “other products” (8517.62.0050) that is being replaced.

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