On March 31, 2021, the Office of the United States Trade Representative (USTR) published in the Federal Register
(86 FR 16813)
a request for written comments regarding a potential trade action in connection with the Section 301 investigation of Spain's Digital Services Tax (DST). USTR also will convene virtual public hearings and accept rebuttal comments in relation to the potential action.
Comments are due by April 30, 2021.
Spain has adopted a DST that applies a three percent tax on certain digital services revenues related to online advertising services, online intermediary services, and data transmission services. Companies with worldwide revenues of [euro]750 million or more and [euro] million in certain digital services revenues are subject to the DST.
Based on information obtained during an investigation, USTR prepared a comprehensive report on Spain's DST (Spain DST Report). The Spain DST Report is posted on the USTR website at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-digital-services-taxes. The report includes a full description of Spain's DST, and supports findings that Spain's DST is unreasonable and discriminatory and burdens or restricts U.S commerce.
USTR proposes to impose additional tariffs of up to 25 percent ad valorem on a list of goods from Spain.
The list published at 86 FR 16813 is quite extensive and contains the following articles of protential interest to clients of Agathon Associates.
Note: All products that are classified in the eight-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) that are listed in this Annex are covered by the proposed action. The product descriptions that are contained in this Annex are provided for informational purposes only, and are not intended to delimit in any way the scope of the proposed action. Any questions regarding the scope of a particular HTSUS subheading should be referred to U.S. Customs and Border Protection. In the product descriptions, the abbreviation ``nesoi'' means ``not elsewhere specified or included''.
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HTSUS subheading Product description
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4202.21.90................. Handbags, with or without shoulder strap or
without handle, with outer surface of
leather, composition or patent leather,
nesoi, over $20 ea.
4202.22.15................. Handbags, with or without shoulder straps
or without handle, with outer surface of
sheeting of plastics.
4203.30.00................. Belts and bandoliers with or without
buckles, of leather or of composition
leather.
6402.99.31................. Footwear w/outer soles & uppers of rubber
or plastics, nesoi, n/cov. ankle, w/ext.
surf. of uppers o/90% rubber or plastics,
nesoi.
6403.51.30................. Footwear w/outer soles and uppers of
leather, nesoi, covering the ankle, welt.
6403.51.60................. Footwear w/outer soles and uppers of
leather, nesoi, covering the ankle, n/
welt, for men, youths and boys.
6403.51.90................. Footwear w/outer soles and uppers of
leather, nesoi, covering the ankle, n/
welt, for persons other than men, youths
and boys.
6403.59.15................. Turn or turned footwear w/outer soles and
uppers of leather, not covering the ankle.
6403.59.30................. Footwear w/outer soles and uppers of
leather, not covering the ankle, welt,
nesoi.
6403.59.60................. Footwear w/outer soles and uppers of
leather, not cov. ankle, n/welt, for men,
youths and boys.
6403.59.90................. Footwear w/outer soles and uppers of
leather, not cov. ankle, n/welt, for
persons other than men, youths and boys.
6403.91.90................. Footwear w/outer soles of rubber/plastics/
comp. leather & uppers of leather, cov.
ankle, n/welt, for persons other than men/
youths/boys.
6403.99.60................. Footwear w/outer soles of rubber/plastics/
comp. leather & uppers of leather, n/cov.
ankle, n/welt, for men, youths and boys,
nesoi.
6403.99.90................. Footwear w/outer soles of rubber/plastics/
comp. leather & uppers of leather, n/cov.
ankle, for women/child./infants, val. over
$2.50/pair.
6404.19.39................. Footwear w/outer sole rub./plast. & upp.
textile, nesoi, w/open toes/heels or slip-
on, >10% by wt. rub./plast. not subj note
5 ch 64.
6404.20.40................. Footwear w/outer soles of leather/comp.
leath., n/o 50% by wt. rub./plast. or rub./
plast./text. & 10%+ by wt. rub./plast.,
val. o/$2.50/pr.
6404.20.60................. Footwear w/outer soles of leather/comp.
leather & uppers of textile, nesoi.
6405.90.90................. Footwear, nesoi, w/outer soles and uppers o/
than leather or comp. leather, not
disposable.
6504.00.60................. Hats and headgear, plaited or assembled
from strips of veg. fibers or unspun
fibrous veg. materials and/or paper yarn,
not sewed.
6505.00.04................. Hats and headgear of fur felt made from hat
forms and hat bodies of 6501.
6505.00.08................. Hats and headgear made from hat forms and
hat bodies of 6501, except of fur felt.
6505.00.15................. Hats and headgear, of cotton and/or flax,
knitted.
6505.00.30................. Hats and headgear, of wool, knitted or
crocheted or made up from knitted or
crocheted fabric.
6505.00.60................. Hats and headgear, of man-made fibers,
knitted or crocheted or made up from
knitted or crocheted fabrics, not in part
of braid.
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