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
fragrancecreators.org. FN
Issue 3, 2018 | FRAGRANCENOTES.ORG | 15