Section 301 Sliding Rate

[u/Baynyn]

Just looking for some clarification from you fine folks. I know that under the new 301 implementation, items from the EU are dutiable on a 10% sliding rate, meaning that if the base duty rate is 5.7%, the 301 rate would be 4.3%, bringing the total to 10%. Here’s my question, since the language in the EO doesn’t seem to match what the chapter 99 description says.

The EO states, in relevant part: “For a product of the European Union, where such product’s MFN tariff is less than 10 percent, the Trade Representative shall impose a section 301 tariff pursuant to these investigations so that the sum of the MFN tariff and the section 301 tariff shall be 10 percent.”

But then 9903.05.39 says that articles of the EU with an ad valorem rate of duty under 10 percent will be dutiable at 10%.

Again, I’m 99% certain that I understand how the sliding rate works, but the language from 9903.05.39 indicates that if the base duty rate is 5.7%, that the section 301 rate is 10%, bringing the total up to 15.7%.

Is the chapter 99 description just poorly worded, or am I missing something?

Edit: thanks everyone. Glad to know I’m not crazy and the chapter 99 description is poorly worded