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301 Proposal for tax duty plus tax proposal, PCB, semiconductor equipment, LED, security, and panel

o-leading o-leading.com 2018-04-17 10:46:18
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 6. Panel 90138070/85284925/85287262, etc., Taxes on monitors and color TVs

Comments: (1) in the Chinese version, 85299063/85299068 and other items mentioned the panel, but in the English text is the face plates, not the LCD panel. (2) As confirmed by BOE and BOE for the first time, its US customers are only Hewlett-Packard and Dell, and more are exporting to its Malaysian foundries. (3) This list is mainly for the display and color TV tax on the downstream panel, its purpose is to protect the United States local monitors and color TV brands. There is no actual effect on the panel. (There may be follow-up adjustments in the supply chain, such as the increase in sales of American television brand manufacturers, thereby increasing the purchase of BOE)

7. Semiconductor equipment 85437020/85439012, PVD equipment and components 85437097, washing machine

Comment: At present, North China Creation’s U.S. exports accounted for less than the median single digit, and this trade war will highlight the importance of independent control, and the localization of equipment will further accelerate.

8. Touch screen 85437095/90330030, touch screen installed in the display device

Comments: (1) English text is Touch screens, and Ophelia's products are Touch Panels, which are not the same products. (2) The direct downstream of Ophey Technology is an assembly plant, and its export to the United States is below the single digits.

9. Discrete Devices 85419000, Diodes, Transistors, Similar Semiconductor Devices, Photosensitive Devices, Semiconductor Devices, LEDs, and Piezoelectric Crystals 85413000, Thyristors, Bidirectional Trigger Diodes, SCR, Non-Photosensitive Devices 90132000, Laser, Non-Laser Diodes 85414080/85414095 Photosensitive semiconductors

Comments: (1) Jiejie Microelectronics and Silan Micro are less than 1% of their exports to the United States. (2) Yangjie Technology's exports to the United States are slightly higher (30% or less), but more is achieved through the acquisition of the US brand MCC. Sales.

10. Capacitance resistors 85321000/85322100/85322200, aluminum electrolytic capacitors, tantalum capacitors, ceramic capacitors 85331000/85332100/85332900, etc., winding resistance, sheet resistance, etc.

Comments: Aihua Group, Farah Electronics, Jianghai Stock and other manufacturers export to the United States are less than 10%

11. Optics 90029020/90029040/90029095, prisms and lenses used in optics, and other components

Comments: Fu Jing's optical export tax number is 90019090, not in the tariff list

Merchants Electronics believes that this trade war has little impact on LED, PCB, laser equipment, semiconductor equipment, and other areas, and mobile phone terminals, security and panels are not included in the tax increase list.

In the proposed tax increase list, the real hammer was dropped. Before the new tariff was formally launched, the “301 investigation” still required several steps to complete? 

April 23: Deadline for the public to attend the hearing. The application material must include a summary of the testimony and the statement should not exceed 5 minutes.

May 11: Deadline for submission of written comments by the public. Opinions can be about: whether a certain item on the list should be retained or removed or a new item added; the level of tax rate; the total level of tariff after taxation. The U.S. Trade Office will publicize written opinions.

May 15th: The 301 Committee will hold a public hearing at the main hearing office of the U.S. Trade Representative Office at 10:00 on the same day.

May 22: The deadline for the public to submit a rebuttal after the hearing.

In response, the Ministry of Commerce of the People's Republic of China issued an announcement this afternoon on the introduction of tariffs on certain imported goods originating in the United States. The announcement pointed out that the U.S. government announced that it would add imported products originating in China based on the results of the 301 investigation. A 25% tariff is levied on about 50 billion U.S. dollars for Chinese exports to the United States. This measure of the United States clearly violates the relevant rules of the World Trade Organization and seriously violates China’s legitimate rights and interests under the rules of the World Trade Organization and threatens China’s economic interests and security.

In order to safeguard China’s legitimate rights and interests in violation of international obligations of the United States, the Chinese government will rely on laws and regulations of the Foreign Trade Law of the People’s Republic of China and other basic principles of international law to produce soybeans and other agricultural products and automobiles originating in the United States. The tariff rate for imported goods such as chemicals, airplanes, etc. shall be levied at a rate equal to 25%, involving about US$50 billion in China’s imports from the United States in 2017. The final measure and effective time will be announced separately.

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