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More Section 301 Tariff Exclusion Requests Granted For List 4

posted by Jennifer Diaz July 27, 2020 0 comments

Nearly a year ago, on August 20, 2019, President Trump and the United States Trade Representative (USTR) imposed a 10 percent ad valorem on imported goods from China, worth an estimated $300 Billion (Tranche or List 4), due to the US’ Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. Then, on August 30, 2019, the 10 percent ad valorem was raised to a 15 percent ad valorem. On January 22, 2020, the USTR, lowered the ad valorem on goods included on Annex A of List 4 to 7.5 percent and suspended the duties entirely for goods included on Annex C. See 84 FR 69447, 85 FR 3741.

Following the publication of the tariffs, USTR published an Exclusion Process Procedures on October 24, 2019. The  July 23, 2020, Federal Register Notice announced that USTR has determined to grant exclusions to items included in the Annex, as well as make certain amendments to previously announced exclusions. Some of the changes are conforming amendments, while others are technical corrections to previously published exclusions.

The notice detailed that “the exclusions are reflected in 11 existing ten-digit HTSUS subheadings and 53 specially prepared product descriptions, which together respond to 242 separate exclusion requests….”

The notice clarified that regardless of who submitted an exclusion request, if a request is granted to any given HTSUS, all items under that HTSUS have been granted exclusion, too. Additionally, remember to check Federal Register Notices because USTR will continue to grant exclusions periodically. The July 23, 2020 notice effects goods that entered for consumption on or after September 1, 2019 “subchapter III of chapter 99 of the HTSUS is modified…by inserting the following new heading 9903.88.53, with the new heading instead into the columns of the HTSUS  labeled “Heading/Subheading”, “Article Description”, and “Rates of Duty 1- General”, respectively:

Heading/ Subheading Article Description Rates of Duty

———————

(1)

———————

General

“9903.88.53 Articles the product of China, as provided for in U.S. note 20(fff) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative…… …The duty provided in the applicable subheading”

By inserting the new US Note 20 (fff) to subchapter III of chapter 99 in numerical sequence: ‘(fff) The USTR determined to establish a process by which particular products classified in heading 9903.88.15 and provided for in U.S. notes 20 (r) and (s) to this subchapter could be excluded from the additional duties imposed by 9903.88.15 …USTR has determined that, as provided in heading 9903.88.53, the additional duties provided for in heading 9903.88.15 shall NOT apply to the following particular products, which are provided for in the following enumerated statistical reporting numbers:

  1. 10.0055
  2. 10.0000
  3. 10.0000
  4. 99.3500
  5. 10.0000
  6. 00.0000
  7. 00.0000
  8. 00.0085
  9. 00.0020
  10. 00.0040
  11. 00.0060
  12. Sodium alginate resins (CAS No. 9005-38-3) (described in statistical reporting number 3913.10.0000)
  13. Boot hangers of plastics and steel, each designed to hold one pair of boots, presented with couplers of plastics to link two or more boot hangers vertically (described in statistical reporting number 3924.90.5650)
  14. Exterior doors having outer faces of plastics with foamed plastics insulation between those faces, each measuring at least 213 cm but not more than 245 cm in height, at least 80 cm but not more than 95 cm in width and not more than 45 mm in thickness (described in statistical reporting number 3925.20.0010)
  15. Clamps and clips of molded plastics, each with a fastener or adhesive backing for affixing a cord or a cable to a flat surface (described in statistical reporting number 3926.90.9990 prior to July 1, 2020; described in statistical reporting number 3926.90.9985 effectively July 1, 2020)
  16. ) Molded shells of plastics, each measuring at least 11.1 cm but not more than 11.7 cm in length and at least 7.9 cm but not more than 8.6 cm in width, weighing at least 38 g but not more than 42g, having alignment with each other), of a kind used to form a housing for an earphone (described in statistical reporting number 3926.90.9990 prior to July 1, 2020; described in statistical reporting number 3926.90.9985 effectively July 1, 2020)
  17. Sets of three polyvinyl chloride-coated foam pads, of plastics, of a kind used to assemble flotation work vests bypassing adjustable straps with buckles through slots in the pads, each set comprising two irregularly shaped front/side pads and one rectangular back pad (described in statistical reporting number 3926.90.9990 prior to July 1, 2020; described in statistical reporting number 3926.90.9985 effectively July 1, 2020)
  18. Women’s knit robes in chief weight of cotton with hook and loop tab closure (described in statistical reporting number 6108.91.0030)
  19. Babies’ gowns of cotton knitted interlock fabric, each with sleeves, neck opening and elasticized bottom opening (described in statistical reporting number 6111.20.6070)
  20. Babies’ sleep slacks, knitted, of cotton, each with neck opening and two-way zipper (described in statistical reporting number 6111.20.6070)
  21. Babies’ sleep slacks of cotton interlock knitted fabric, sleeveless, each with neck opening and two-way zipper (described in statistical reporting number 6111.20.6070)
  22. Babies’ swaddle sacks of cotton knitted interlock fabric, each with sleeves and mitten cuffs (described in statistical reporting number 6111.20.6070)
  23. Babies’ blanket sleepers of polyester knitted fleece, sleeveless, each with two-way zipper (described in statistical reporting number 6111.30.5015)
  24. Men’s and boys’ cotton terry bathrobes with muslin trim, each beltless but featuring a hook-and-loop tab (described in statistical reporting number 6207.91.1000)
  25. Women’s cotton terry bathrobes with muslin trim, each beltless but featuring a hook-and-loop tab (described in statistical reporting number 6208.91.1010)
  26. Girls’ cotton terry bathrobes with muslin trim, each beltless but featuring a hook-and-loop tab (described in statistical reporting number 6208.91.1020)
  27. Girls’ fleece bathrobes, each beltless but featuring a hook-and0loop tab (described in statistical reporting number 6208.92.0020)
  28. Blankets (other than electric blankets) of cotton, woven, each measuring at least 116 cm but not more than 118 cm on an edge (described in statistical reporting number 6301.30.0010)
  29. Blankets (other than electric blankets) of cotton, other than woven, each measuring at least 116 cm but not more than 118 cm on an edge (described in statistical reporting number 6301.30.0020)
  30. Crib sheets of muslin cotton, fitted with elastic (described in statistical reporting number 6302.31.9020)
  31. Protective covers of cotton for pillows, not knitted or crocheted, of cotton, not napped or printed, each with full encasement construction and zipper opening (described in statistical reporting number 6302.31.9040)
  32. Oven mitts, not knitted or crocheted, of cotton, each incorporating a hanging loop, measuring at least 16 cm but not more than 19 cm in width by at least 29cm but not more than 32 cm in length (described in statistical reporting number 6304.92.0000)
  33. Handrail covers for spas and pools, the foregoing composed of 95 percent polyester and 5 percent spandex by weight, each measuring at least 60 cm but not more than 306 in length (described in statistical reporting number 6307.90.9889 prior to July 1, 2020; described in statistical reporting 6307.90.9891 effective July 1, 2020)
  34. Outdoor shelters, each comprising a canopy of textiles, a folding frame and a carrying case with wheels (described in statistical reporting number 6307.90.9889 prior to July 1, 2020; described in statistical reporting 6307.90.9891 effective July 1, 2020)
  35. Athletic, recreational and sporting headgear (other than of reinforced or laminated plastics), each with an inner protective suspension system and a sun visor, each weighing not more than 500g and designed for off-road use with bicycles (described in statistical reporting 6506.10.6045)
  36. Folding helmets of injected plastic parts, each measuring not more than 85 mm in thickness when folded, weighing not more than 525g (described in statistical reporting number 6506.10.6075)
  37. Fittings of galvanized steel, including but not limited to support frames, wings, legs, connector and sign supports, all of which are parts of retail display fixtures (described in statistical reporting 8302.42.3065)
  38. Electric snow blowers, corded or cordless, each weighing no more than 46 kg, with a motor, not more than 15 A, wheeled (described in statistical reporting 8430.20.0060)
  39. Cylindrical steel drives specially designed for adjusting color on machines that print on corrugated paper and paperboard, each article measuring at least 8 mm but not more than 9mm in diameter and at least 2.5 mm but not more than 14.1 kg (described in statistical reporting 8443.91.3000)
  40. Cylindrical steel drives specially designed to control color resignation (alignment) and material tension on printing machinery, each drive measuring at least 155 mm but not more than 160 mm in diameter and at least 165 mm but not more than 170 mm in length, weighing at least 3 kg but not more than 4 kg (described in statistical reporting 8443.91.3000)
  41. Electrical automated embroidery machines capable of being programmed by an operator at a machine control console and also capable of saving or loading digital programming commands through a USB port or a local area network connection, each machine having at least two but not more than eight parallel-operating multi-thread embroidery heads and a single liquid-crystal display (“LCD”) panel with a video display diagonal measuring at least 160 mm but not more than 170 mm and associated control panel (described in statistical reporting 8447.90.5000)
  42. Cast iron covers for hand-operated gate valves (described in statistical reporting 8481.90.3000)
  43. Iron or steel bodies of hand-operated gate valves (described in statistical reporting 8481.90.3000)
  44. Steel parts of hand-operated gated valves (described in statistical reporting 8481.90.3000)
  45. Lithium-ion batteries consisting of cases of base metal containing 18650 individual lithium-ion battery cells, such batteries having a total capacity of at least 60 but not more than 200-watt hours, with at least one USB Type-C port, at least one USB Type-A port, at least one wireless charging pad and a digital screen that displays the power conditions of the battery (described in statistical reporting 8507.60.0020)
  46. Lithium-ion batteries consisting of cases of base metal containing 18650 individual lithium-ion battery cells, such batteries having a total capacity of at least 90 but not more than 6,500-watt-hours, with at least one AC outlet, at least one USB port at least one female barrel port and a digital screen that displays the power conditions of the battery (described in statistical reporting 8507.60.0020)
  47. Electric coffee makers of a kind used for domestic purposes, DC powered via a USB cable, each weighing no more than .5 kg (described in statistical reporting 8516.71.0020)
  48. Wireless communication apparatus that can receive audio data to be distributed to wireless speakers (described in statistical reporting 8518.22.0000)
  49. Fuse-type incandescent tungsten0filament lamps, designed for a voltage of 12V or more but not exceeding 14 V, each measuring not more than 7 mm in diameter and not more than 32 mm in length (described in statistical reporting 8539.29.3050)
  50. Headlight brackets of aluminum, for motorcycles, each measuring not more than 34 cm by 29 cm by 19 cm, weighing not more than 2 kg (described in statistical reporting 8714.10.0050)
  51. Electric guitar kits, each consisting of all of the parts necessary to construct an electric guitar (described in statistical reporting 9207.90.0040)
  52. Parts of music synthesizers of heading 9207, comprising specially designed printed circuit assemblies for affecting the characteristics or qualities of sound (described in statistical reporting 9209.94.8000)
  53. Pre-charged pneumatic (“PCP”) air rifles, each measuring at least 101 cm but not more than 115 cm in length, weighing at least 2.8 kg but not more than 3.5 kg (described in statistical reporting 9304.00.2000)
  54. Modular diving boards, suitable for mounting on boats or docks (described in statistical reporting 9506.29.0080)
  55. Swim masks, snorkeling masks, snorkels and water fins (described in statistical reporting 9506.29.30080)
  56. Balance trainers of plastics, each measuring not more than 120 cm in length by 45 cm in width by 27 cm in height, containing an air bladder (described in statistical reporting 9506.91.0030)
  57. Exercise machines of steel, each measuring at least 157 cm but not more than 158 cm in length, at least 152 cm but not more than 153 cm in width and at least 88 cm but not more than 90 cm in height, of a kind specifically designed to train the gluteal muscles (described in statistical reporting 9506.91.0030)
  58. Push-up exercise machines, each consisting of an aluminum extrusion with hard plastic end-caps, a hard plastic center divider, two sliding handles of hard plastics and rubber and a sliding adjustment plate (described in statistical reporting 9506.91.0030)
  59. Brushes of natural goat hair bristles, which are in the length of at least 30 mm but not more than 33 mm, enclosed in a plastic protective holder, for cleaning optical lenses (described in statistical reporting 9603.90.8050)
  60. Porous-tipped markers for applying liquid chalk (described in statistical reporting 9608.20.0000)
  61. Gold coins of numismatic (collector’s) interest, 250 years or more in age, or Chinese origin (described in statistical reporting 9705.00.0010)
  62. Numismatic (collector’s) coins (other than archaeological pieces and other than of gold), 250 years or more in age (described in statistical reporting 9705.00.0040)
  63. Gold coins of numismatic (collector’s) interest, less than 250 years in age, of Chinese origin (described in statistical reporting 9705.00.0050)
  64. Coins of Chinese origin and of numismatic (collector’s) interest, of any metal other than of gold, less than 250 years in age (described in statistical reporting number 9705.00.0065)”

Did you miss the deadline to file your exclusion or comments? Was your exclusion denied? Now is the time to review all exclusions granted for your HTS’s to determine whether they are applicable to your product. All granted exclusions may apply to any product that meets the USTR’s product description. If you are not tracking We can assist you to review the granted exclusions and strategize on how to timely file protests and post summary corrections to get refunds from U.S. Customs and Border Protection (CBP) of paid Section 301 duties.

For background information on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the China tariffs and submitted comments and exclusion requests. Our Customs and International Law attorneys are available at 305-456-3830 or info@diaztradelaw.com.

 

 

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