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A Snapshot of Section 301 Effective dates and Deadline for Exclusion Request

posted by Jennifer Diaz September 25, 2018 8 Comments

trade lawThe trade war has kept members in the trade industry on their toes – here is a recap.

Effective Dates:

For importers being hit by additional duties it is crucial to know when the additional duties are effective and must be paid. USTR has now issued three lists under 301 Section Trade Remedies. We urge importers to clearly understand which list their products are subject to and develop a business plan on how to prepare for additional import costs.

List 3

  • Just last Friday, September 17, 2018, USTR issued list 3, which comprises over 5,700 full and partial eight-digit Harmonized Tariff Schedule of the United States (HTSUS) subheadings, which can be found in Annex A to the USTR’s September 21, 2018 Notice. See Federal Register 83 FR 47974.
  • The additional import duties for Chinese goods covered under Annex A are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on September 24, 2018, and
  • are now subject to 10% additional import duties. The 10% will increase to 25% on January 1st, 2019.
  • Unlike the lists 1 and 2, List 3 does not provide exclusion opportunities. The comment period for List 3 is now closed. 6,194 comments were submitted. USTR has not responded to the comments submitted.

List 2

  • List 2 was issued by USTR, covers only 279 eight-digit HTSUS numbers.
  • The additional import duties for Chinese goods covered by the August 16, 2018 list were effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on August 23, 2018, and
  • are now subject to 25% additional import duties.
  • File an Exclusion Request with USTR by December 18, 2018.

List 1

  • List 1 comprises over 800 eight-digit HTSUS numbers, and is published in Annex A to the USTR’s Notice of Action.
  • The additional import duties for Chinese goods covered by June 20, 2018 were effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on July 6, 2018, and
  • are now subject to 25% additional import duties.
  • File an Exclusion Request with USTR by October 9, 2018.

Your options:

  • For List 1: File an Exclusion Request with USTR via Docket No. USTR-2018-0025.
    • Deadline: October 9, 2018.
    • Exclusions will be effective for one year upon the publication of the exclusion determination in the Federal Register, and will apply retroactively to July 6, 2018.
  • For List 2: File an Exclusion Request with USTR via Docket No. USTR–2018–0032.
    • Deadline: December 18, 2018
    • Exclusions will be effective for one year upon the publication of the exclusion determination in the Federal Register, and will apply retroactively to August 23, 2018.
  • For all three lists:
    • The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export. Contact us today to discuss your country of origin options.
    • According to CSMS Message 18-000419, Section 301 duties are eligible for duty drawback for exporters.
    • We have other options to explore. Contact us today to discuss your country of origin options and others.

The deadline for the formal product exclusions for list 1 is approaching! Contact DTL TODAY at 305-456-3830 or info@diaztradelaw.com.

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8 Comments

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[…] The trade war has kept members in the trade industry on their toes – here is a recap. […]

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Customs & International Trade Law ExpertUpdate – Deadline Approaching – A Snapshot of Section 301 Duties & Your Options! - Customs & International Trade Law Expert December 12, 2018 at 9:43 am

[…] The trade war has kept members in the trade industry on their toes – here is a recap. […]

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[…] The on-going trade war continues as China and the US make progress to come to an agreement. For background information on past actions taken by the Trump Administration to protect American Intellectual Property, check out our previous blogs. […]

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Customs & International Trade Law ExpertChina Tariff Hike Postponed - USTR to Establish an Exclusion Process – Seminar on “China Tariffs/AD/CVD 101” - Customs & International Trade Law Expert February 28, 2019 at 12:47 pm

[…] The on-going trade war continues as China and the US make progress to come to an agreement. For background information on past actions taken by the Trump Administration to protect American Intellectual Property, check out our previous blogs. […]

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[…] recently the Section 301 Tariffs have been associated with China deceptive practices. The USTR is now expanding Section 301 Tariffs […]

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Customs & International Trade Law ExpertComment Today! USTR Publishes Preliminary List of EU Products To Be Covered By Additional Duties.  - Customs & International Trade Law Expert April 10, 2019 at 5:48 pm

[…] recently the Section 301 Tariffs have been associated with China deceptive practices. The USTR is now expanding Section 301 Tariffs […]

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[…] September 17, 2018, the trade industry has been bracing themselves for the increase of China tariffs from 10% to 25%. […]

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[…] September 17, 2018, the trade industry has been bracing themselves for the increase of China tariffs from 10% to 25%. […]

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