EQI is leading global provider of critical supply chain management services for Original Equipment Manufacturers across a broad range of markets. As we all know, these past two years have been marked by a dramatic shift in U.S. trade policy. Following the imposition of new tariffs on Chinese products under Sec. 301 of the Trade Act of 1974, EQI worked to ensure that the Office of the U.S. Trade Representative understood the unique nature of our supply chain – and the significant negative impact of the new duties. Our written arguments and in-person testimony in front of the USTR last May were followed by submission of over 30 Exclusion Requests. These requests outlined why counterweight castings met all criteria for exclusion from the Section 301 tariffs.
We have good news to share. EQI was recently notified by the Office of the U.S. Trade Representative that our requests for exclusion from the Section 301 tariffs on counterweight castings imported from China have been granted. As of April 18, 2019, ALL counterweight castings of iron or steel designed for use on forklift and other work trucks (described in statistical reporting number 8431.20.0000) are excluded from the 25% tariffs. The granted exclusions will be retroactive to July 6, 2018, the date the Section 301 List 1 tariffs took effect, and valid for one year from the date of publication of the attached notice. The notice was published on April 18, 2019, so these exclusions will be valid through April 17, 2020. We are convinced that EQI’s actions, supported by a broad coalition of industry partners and customers, played a substantial role in achieving this important outcome.
EQI has several additional exclusion requests currently in the final stage of review at the USTR covering other heavy equipment HTSUS codes similarly affected by the Section 301 tariffs. We remain optimistic that a similar outcome will be realized on these requests. Our 80 global associates primarily source metal casting products such as iron counterweights for material handling equipment and aerial work platforms, as well as critical casting and forging parts for construction, CNC machine tools, oil & gas, and other heavy equipment. We have a growing network of foundries across China, India, Vietnam, and the EU that allow us to meet complex challenges. In short, we’re not a broker. EQI is a service business; we solve problems. We are casting experts with a comprehensive set of supply chain capabilities that can assist your business with everything from product design and development all the way to fulfillment