On March 31, 2021, the U.S. Trade Representative (USTR) announced that it will proceed with the Section 301 investigations into the Digital Services Taxes (DST) adopted by Austria, India, Italy, Spain, Turkey, and the United Kingdom. Each of these six (6) countries were determined to have taken discriminatory action against U.S. digital companies. The USTR also announced that it was terminating the Section 301 investigations into the DST practices of Brazil, the Czech Republic, the European Union, and Indonesia.
The notices concerning the six (6) countries still under a Section 301 investigation outline proposed Section 301 tariffs of up to 25% that may be imposed on certain products. The proposed Section 301 duties are based on the aggregate level of trade in the products and the DST expected to be collected from U.S. companies. The proposed product lists include products with significant U.S. markets, such as (see above Federal Register links for complete lists):
- Austria: Leather articles, ceramics, glassware, printed circuit assemblies, radar apparatus, telescopes, and pianos
- India: Shrimp, bamboo articles, silk brassieres, precious and semi-precious stones, and furniture
- Italy: Perfume, gloves, handbags, suits, jackets, blazers, ties, leather footwear, and lenses
- Spain: Footwear, hats, glassware, and handbags
- Turkey: Certain textiles, carpets, bed linens, ceramic tiles, and jewelry
- UK: Perfumes, overcoats, dresses, footwear, makeup, tiles, ceramic fixtures, brushes, industrial robots, jewelry, and furniture
The USTR is requesting written comments regarding the proposed actions and will hold public hearings. Importers of the covered products are encouraged to submit written comments by April 30, 2021 and submit requests to appear at the public hearings by April 21, 2021.
Please contact Marshall Miller, Brian Murphy, or Sean Murray with questions or for assistance.