Fragrance Notes Issue 3, 2018 - Page 15

ASSOCIATION NEWS Fragrance Creators Saves $17 Million in Tariff Costs Dozens of fragrance-related tariffs removed from China 301 list Fragrance Creators Association successfully protected dozens of fragrance- related tariffs from the final List 3 of the Trump Administration’s China 301 tariffs, a significant win for its member companies. The association’s removal rate was more than double the national average. List 3 tariffs were published in the Federal Register on September 20, 2018, and excluded a number of key fragrance materials for which we had sought removal.  President Trump announced that the new tariffs took effect on September 24, 2018, at a rate of 10 percent; the rate will increase to 25 percent on January 1, 2019.  On September 6, 2018, we submitted comments in response to the United States Trade Representative (USTR) proposed Section 301 tariffs.  With the active support of our membership, we successfully advocated for the removal of fragrance-related ingredients, including natural extracts and other raw materials that are used in perfumery and fragrance mixtures.  “I’m grateful for the Department of Commerce, including Secretary Wilbur Ross, and USTR’s willingness to engage in dialogue and for recognizing the importance of fragrance ingredients and our industry to the broader American economy,” said Farah K. Ahmed, President & CEO of Fragrance Creators.  “Protecting these fragrance-related items strengthens our member companies and promotes future jobs, innovation, and growth.” However, the remaining listed chemicals still represent a major burden for American businesses in the fragrance, personal care, and household and cleaning product categories.  In total, List 3 affects approximately $200 billion worth of Chinese imports.  Fragrance Creators has joined the industry coalition, Americans for Free Trade, in asking the Administration to include an exclusion process for List 3.  Fragrance Creators continues to urge the Administration to discontinue these tariffs, whichdisproportionately affect American manufacturers that cannot source these materials elsewhere, and will result in increased costs for basic consumer goods across the nation. Read our comments, find a list of removed fragrance-related materials, and learn more at FN Issue 3, 2018 | FRAGRANCENOTES.ORG | 15