USTR Announces Section 301 Tariffs on Goods from France

Tuesday, December 3, 2019

USTR Announces Section 301 Tariffs on Goods from France

On July 24, 2019, France signed into law a bill imposing a 3% tax to be applied to gross income derived from certain digital services provided in France in which there is user involvement. This would only concern companies with revenue of more than EUR 25M ($27.86 million) and EUR 750M ($830 million) worldwide. Following an investigation, the Office of the United States Trade Representative has determined that France’s Digital Services Tax (DST) is unreasonable and places burdens on US companies such as Google, Facebook, Apple, and Amazon.

In response to this action, USTR has proposed action in the form of additional duties of up to 100% on products from France that includes wine, cheeses, cosmetics, soaps, handbags, certain porcelain goods, and cast-iron items. USTR also seeks comments on this proposed action, as well as on other options including the imposition of fees or restrictions on services of France. A public hearing will be held in connection with the action to be taken.

DATES: To be assured of consideration, the following schedule applies:

December 30, 2019: Due date for submission of a request to appear at the public hearing and a summary of testimony.

January 6, 2020: Due date for written comments.

January 7, 2020: The Section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E Street SW, Washington DC 20436 beginning at 9:30 am.

January 14, 2020: Due date for submission of post-hearing rebuttal comments.

ADDRESSES: You should submit written comments through the Federal eRulemaking Portal: Follow the instructions for submissions in sections V and VI below. The docket number is USTR-2019-0009. For issues with on-line submissions, please contact the USTR Section 301 line at (202) 395-5725.

Read the entire USTR Notice of Determination and Request for Comments Concerning Action Pursuant to Section 301: France’s Digital Services Tax here