On December 31, 2019, the U.S. Trade Representative (“USTR”) announced that 68 additional HTS provisions and product descriptions will be excluded from the Section 301 trade remedies imposed on Chinese-origin products. The newly announced exclusions all relate to items on China 301 List 3 (the $200 billion trade action) which, unless excluded, are subject to an additional tariff of 25% ad valorem. The list of newly-excluded items (which supplements the exclusions previously granted by the USTR) is provided below. The exclusions will be retroactive to September 24, 2018 (the date when the China 301 List 3 additional tariffs took effect) and are slated to remain in effect through August 7, 2020. Any claims for duty refunds require affirmative action on the part of importers in the form of post-entry corrections or protests (depending upon the liquidation status of the underlying entries). CBP has also entertained requests to extend the liquidation of entries to allow additional time for the filing of corrections.
Significantly, China 301 exclusions are product-specific, not company-specific. Thus, if a product is described by an exclusion, the importer may benefit regardless of who filed for the exclusion. Information as to previously excluded items can be accessed at the end of this notice.
The exclusion request process has closed for China 301 Lists 1 -3. The USTR is accepting exclusion requests for items on List 4A (https://www.gdlsk.com/president-announces-china-301-list-4-to-go-into-effect-september-1/) until January 31, 2020. If your business is interested in filing an exclusion request, seeking a refund of past duties paid under Section 301, and/or discussing Section 301 mitigation strategies, please contact our office and speak with one of our attorneys.
View the full list of USTR exclusions here
Compliments of Grunfeld, Desiderio, Lebowitz, Silverman, & Klestadt, a Member of the EACCNY