If you import goods subject to List 2/Tranche 2 China tariffs, read on!
Effective August 23, 2018, the U.S. Trade Representative imposed additional 25 percent duties on goods of China classified in 279 eight-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), with an approximate annual trade value of $16 billion. See 83 FR 40823 for List 2; the $16 billion action. The U.S. Trade Representative’s determination included a decision to establish a process by which U.S. stakeholders could request exclusion of particular products classified within an eight-digit HTSUS subheading covered by the $16 billion action from the additional duties. The U.S. Trade Representative issued a notice setting out the process for the product exclusions and opened a public docket. See 83 FR 47236 (the September 18 notice).
Original Exclusion Time Frame
The first round of tariff exclusions for the $16 billion action was published in July 2019 and expires tomorrow, July 31, 2020. See 84 FR 37381. In accordance with advice from the Section 301 Committee, USTR has determined to extend certain exclusions through the end of the year, December 31, 2020.
Since it began the exclusion process, USTR has granted nearly 7,000 requests and has more than 200 still pending review. Regardless of who files the request, once a specific HTSUS heading is granted an exclusion, all products under the same heading have been excluded, too. Similarly, the extensions to the exclusions, detailed in the July 30, notice, apply to all products under the given HTSUS. Keep in mind that USTR may periodically publish additional extensions for other HTSUS in the Federal Register.
How to Use Extension
The extensions to exclusions covered in the July 30, notice, effect goods entered for consumption or withdrawn on or after 12:01 a.m. eastern daylight time on July 31, 2020, and before 11: 50 p.m. eastern daylight time on December 31, 2020. The notice explains that subchapter III of chapter 99 of the HSTSUS is modified by inserting the new heading 9903.88.54, as well as inserting the following information:
|Heading/ Subheading||Article Description||Rates of Duty|
|“9903.88.54||Effective with respect to entries on or after July 31, 2020, articles the product of China, as provided for in U.S. note 20(ggg) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative……
|…The duty provided in the applicable subheading
What Products Does Extension Apply To
USTR has determined that, as provided in heading 9903.88.54, the additional duties provide for in heading 9903.88.02 shall not apply to the following particular products, which are provided for in the following enumerated statistical reporting numbers:
- Polytetrafluoroethylene ((C2F4)n), having a particle size of 5 to 500 microns and a melting point of 315 to 329 degrees Celsius (described in statistical reporting number 3904.61.0090)
- Polyethylene film, 20.32 to 198.12 cm in width, and 30.5 to 2000.5 m in length, coated on one side with solvent acrylic adhesive, clear or in transparent colors, whether or not printed, in rolls (described in statistical reporting number 3919.90.5060)
- Rectangular sheets of high-density or low-density polyethylene, 111.75 cm to 215.9 cm in width, and 152.4 cm to 304.8 cm in length, with a sticker attached to mark the center of each sheet, of a kind used in hospital or surgery center operating rooms (described in statistical reporting number 3920.10.0000)
- Gasoline or liquid propane (LP) engines each having a displacement of more than 2 liters but not more than 2.5 liters (described in statistical reporting number 8407.90.9010)
- Dispensers of hand-cleaning or hand-sanitizing solutions, whether employing a manual pump or a proximity-detecting battery-operated pump, each article weighing not more than 3kg (described in statistical reporting number 8424.89.9000)
- Walking behind rotary tillers, electric-powered individually weighing less than 14 kg (described in statistical reporting number 8432.29.0060)
- AC motors, of 18.65 W or more but not exceeding 37.5 W, each with attached actuators, crankshafts or gears (described in statistical reporting number 8501.10.6020)
- Position or speed sensors for motor vehicle transmission systems, each valued not over $12 (described in statistical reporting number 8543.70.4500)
- Wheel speed sensors for anti-lock motor vehicle braking systems, each valued not over $12 (described in statistical reporting number 8543.70.4500)
- Apparatus using passive infrared detection sensors designed for turning lights on and off (described in statistical reporting number 8543.70.9960)
- Liquid leak detectors (described in statistical reporting number 8543.70.9960)
- Robots, programmable, measuring not more than 40 cm high by 22 cm wide by 27 cm deep, incorporating an LCD display, camera and microphone but without “hands” (described in statistical reporting number 8543.70.9960)
- Motorcycles (including mopeds), with reciprocating internal combustion piston engine of a cylinder capacity not exceeding 50 cc, valued not over $500 each (described in statistical reporting number 8711.10.0000)
- Digital clinical thermometers (described in statistical reporting number 9025.19.8040 prior to July 1, 2020l described in statistical reporting number 9025.19.8010 or 9025.19.8020 effective July 1, 2020)”
Need Help Interpreting?
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 firstname.lastname@example.org.