WT/DS587/1  
G/L/1322  
 
4 September 2019  
(19-5658) Page: 1/2 
  Original: English  
 
UNITED STATES – TARI FF MEASURES ON CERTA IN GOODS FROM CHINA III  
REQUEST FOR CONSULTA TIONS BY CHINA  
The following communication, dated  2 September 2019 , from the delegation of China  to the 
delegation of the United States , is circulated to the Dispute Settlement Body in accordance with 
Article 4.4 of the DSU.  
 
_______________  
 
My authorities have instructed me to request consultations with the Government of the United States 
pursuant to Article 4 of the Understanding on Rules and Procedures Gove rning the Settlement of 
Disputes (DSU), Article XXII I of the General Agreement on Tariffs and Trade 1994  (GATT 1994 ) 
concerning the tariffs measures that the United States accords to certain goods with the estimated 
trade value of approximately $ 300 billion originating from China.  
 
The United States  published the Notice of Modification of Section 301  Action : China’s A cts, Policies, 
and Practices Related to Technology Transfer, Intellectual Property, and Innovation in the Federal 
Register dated 20 August 20191, according to which an additional ad valorem duty of 10 percent 
targeting to certain importing products of Chin ese origin , on the tariff subheading set out in Annex 
A to the above Notice,  has been imposed since 1 September, 2019, and an additional ad valorem 
duty of 10 percent targeting to certain importing products of Chinese origin , on the tariff subheading 
set out in Annex C to the above Notice, is to be imposed starting from 15 December, 2019 .  The 
additional duty rate was increased to 15 percent according to the Notice published in the Federal 
Register dated on 30 August 20192.  The additional duty, described a s modification of Section 301 
Action,  is only applied to China ’s products and in excess of the United States ’s bound rates in its 
Schedule of Concessions  and Commitments annexed to the GATT 1994.  
 
The legal documents through which the United States implements the additional  tariff measures 
include : 
 
1. Section  301-310 of the Trade Act of 1974, as amended (19 U.S.C., paragraphs 2411 -2420).  
2. Findings  of the investigation into  China ’s acts, policies and practices related to technology 
transfer, intellectual property and innovation under Section  301 of the Trade Act of 1974.3  
3. Update  Concerning China’s Acts, Policies, and Practices Related to Technology Transfer, 
Intellectual Property, and Innovation (N ov. 20, 2018).4 
4. Actions by the United States Related to the Section 301 Investigation of China ’s Laws, 
Policies, Practices, or Actions Related to Technology Transfer, Intellectual Property, and 
Innovation.5 
                                                
1 84_FR_43,304 ( August 20, 2019).  See https://www.govinfo.gov/content/pkg/FR -2019-08-
20/pdf/2019 -17865.pdf  
2 84_FR_45,821(August 30, 2019).  See https://www.govinfo.gov/content/pkg/FR -2019-08-
30/pdf/2019 -18838.pdf  
3 See https://ustr.gov/sites/default/files/Section%20301%20FINAL .PDF 
4 See https://ustr.gov/sites/default/files/enforcement/301Investigations/301%20Report%20Update.pdf . 
5 See https://www .whitehouse.gov/presidential -actions/presidential -memorandum -actions -united -
states -related -section -301-investigation/  WT/DS587/1 • G/L/1322  
 
- 2 - 
 
  5. Notice of Determination and Request for Public Comment Concerning Proposed 
Deter mination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices 
Related to Technology Transfer, Intellectual Property, and Innovation (Apr il 6, 2018).6 
6. Request for Comments Concerning Proposed Modification of Action  Pursuant to Section 301: 
China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, 
and Innovation  (May 17, 2019).7 
7. Notice of Modification of Section 301  Action : China’s Acts, Policies, and Practices Related to 
Technology Transfer, Intellectual Property, and Innovation  (August 20, 2019).8  
8. USTR Statement on Section 301 Tariff Action Regarding China (August 23, 2019)9 
9. Notice of Modification of Section 301  Action : China’s Acts, Policies, and Practices Related to 
Technology Transfer, Intellectual Property, and Innovation  (August 30, 2019).10 
 
This request for consultations also concerns  any modification, replacement or amendments  to the 
measures identified above , and any closely connected , subsequent  or implementing measures . 
 
These measures appear to be inconsistent with the relevant provisions of the WTO covered 
agreements including:  
 
1. Article I.1 of the GATT 1994, because the measures at issue fail to extend immediately and 
unconditionally to the products originating in China  an "advantage, favour, privilege or 
immunity" granted by the United States "[w]ith respect to customs duties and  charges of 
any kind imposed on or in connection with" the importation of products originating in the 
territor ies of other Members . 
2. Article II.1(a) and (b) of the GATT 1994, because the United States imposes additional tariffs 
on certain imported products originated in China as identified in measures 7, 8 and 9  above 
that are in excess of United States bound rates in its Schedule of Concessions and 
Commitments annexed to the GATT 1994, and therefore  fails to accord to the products 
originating in China ident ified in the above mentioned documents the treatment no less 
favourable  than that provided for in the United States ’s Schedule of Concessions  and 
Commitments annexed to the GATT 1994.  
3. Article 23.1 and Article 23.2 (a), (b), and (c)  of the DSU, because Unit ed States made a 
determination to the effect that a violation has occurred  without recourse to the dispute 
settlement in accordance with the DSU and the measures at issue fail to recourse to, and 
abide by, the rules and procedures of the DSU, when the Unit ed States seeks the redress of 
a violation of obligation or other nullification or impairment of benefits under the covered 
agreements or an impediment to the attainment of any objective of the covered agreements.  
 
In addition, and as a consequence of the foregoing, the measures at issue appear to nullify or impair 
benefits accruing to China directly or indirectly under the cited agreements.  
China reserves  the right to raise additional claims and legal matters regarding the above  mentioned  
measures during the course of the consultations.  
 
China looks forward to receiving your reply to the present consultations  request and to scheduling 
a mutually convenient date for consultations . 
 
 
__________  
                                                
6 83 FR 14,906  (April 6, 2018).   See 
https:/ /ustr.gov/sites/default/files/enforcement/301Investigations/FRN301.pdf  
7 84_FR_22,564 ( May 17, 2019 ).  See 
https://ustr.gov/sites/default/files/enforcement/3 01Investigations/84_FR_22564.pdf  
8 84_FR_43,304 ( August 20, 2019).  See https://www.govinfo.gov/content/pkg/FR -2019-08-
20/pdf/2019 -17865.pdf  
9 See https://ustr.gov/about -us/policy -offices/press -office/press -releases/2019/august/ustr -statement -
section -301-tariff 
10 84_FR_45,821(August 30, 2019).  See https://www.govinfo.gov/content/pkg/FR -2019-08-
30/pdf/2019 -18838.pdf