U.S. Extends Tariff Exclusions on Specific Chinese Goods Under U.S. Note 20(rr)
The U.S. Trade Representative (USTR) announced an extension of tariff exclusions for certain Chinese products classified under U.S. Note 20(rr) to subchapter III of chapter 99 of the Harmonized Tariff Schedule (HTS). This decision impacts specific goods imported into the United States, including those potentially traded through intermediary countries like the Bahamas.
October 10, 2023
Impact: This extension provides temporary relief for U.S. importers and businesses relying on these Chinese products, potentially increasing trade flows through the Bahamas as a transshipment hub, though direct trade between the U.S. and Bahamas on these items remains limited.
USTR Reviews Additional Exclusions for Chinese Products Under Section 301 Tariffs
The USTR initiated a review to consider further exclusions for products under U.S. Note 20(rr), focusing on items subject to Section 301 tariffs on Chinese imports. While the Bahamas is not a direct origin for these goods, its role in regional trade logistics was noted in discussions.
September 15, 2023
Impact: Potential new exclusions could stabilize costs for U.S. businesses importing through regional hubs like the Bahamas, though the impact on direct U.S.-Bahamas trade for these specific goods is minimal due to the Bahamas' limited manufacturing base.
U.S.-Bahamas Trade Discussions Highlight Transshipment Concerns for Chinese Goods
During bilateral trade talks, U.S. officials raised concerns about the transshipment of Chinese goods, including those under U.S. Note 20(rr), through the Bahamas to evade tariffs. The discussions emphasized the need for stricter origin verification.
August 20, 2023
Impact: Increased scrutiny on transshipment could disrupt indirect trade routes involving Chinese products entering the U.S. via the Bahamas, potentially reducing trade volume for logistics and shipping sectors in the Bahamas.
