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List 3 Exclusion Extensions Granted – Did Your HTS Make the Cut?

posted by Jennifer Diaz August 11, 2020 0 comments

Over 200 exclusions set to expire on August 7th are now effective until the end of the year.

In September 2018, as part of the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation, the US imposed a 10 percent ad valorem duties on more than 5,700 goods from China worth approximately $200 billion (List 3). Since the publication of the exclusion process on June 24, 2019, the United States Trade Representative (USTR) has granted 15 rounds of relief.

Then, on May 6, 2020, and June 3, 2020, USTR asked interested parties to submit comments regarding its consideration to extend certain exclusions for up to 12 months. The requests were reviewed on a case by case assessment and the scope of the evaluation is “whether, despite the first imposition of these additional duties in September 2018, the particular product remains available only from China”.

Currently, USTR has granted nearly 7,000 exclusion requests and has more than 200 pending requests for products affected by actions against China. Following a holistic review of the effects of the tariffs imposed in September 2018 and the subsequent exclusions, USTR has determined to extend the effective date for certain previously granted exclusions. The Federal Register Notice (published on August 11, 2020) explains that over 200 previously granted exclusions, which were set to expire on August 7, 2020, will now expire at the end of the year, on December 31, 2020.

As customary, if an exclusion request is granted to a specific product, all products classified by that same ten (10) digit HTSUS heading (if they also fall under the exclusion description) become excluded. Essentially, one granted exclusion can be used by any other party if their merchandise falls under the same HTS and description excluded. Many companies may be unaware that thousands of products have been granted exclusion that they may also qualify to use. Similarly, the extensions of the exclusions detailed in the Federal Register Notice apply to all items under a given HTSUS, regardless of who submitted the initial exclusion request or subsequent extension request.

The 266 HTSUSnumbers listed in the notice are excluded from the 10 percent ad valorem duties until 11:59 pm on December 31, 2020. Pursuant to the exclusion process, USTR decided that, as provided in heading 9903.88.56, the additional duties provided for in heading 9903.88.03 shall not apply to the following HTSUS numbers:

(1) 0304.72.5000 (55)

3824.78.0020

(109)

7009.10.0000

(163)

8483.10.1050

(217)

8708.40.7570

(2) 0304.83.1015 (56)

3824.78.0020

(110)

7009.10.0000

(164)

8501.40.2020

(218)

8708.40.7570

(3) 0304.83.1020 (57)

3824.99.9297

(111)

7016.10.0000

(165)

8501.40.2020

(219)

8708.99.6890

(4) 0304.83.5015 (58)

3824.99.9297

(112)

7308.30.1000

(166)

8501.40.2020

(220)

8708.99.8180

(5) 0304.83.5020 (59)

3923.10.9000

(113)

7308.30.5050

(167)

8501.40.2040

(221)

8712.00.2500

(6) 0304.83.5090 (60)

3923.50.0000

(114)

7308.40.0000

(168)

8501.40.2040

(222)

8712.00.2500

(7) 3923.21.0095 (61) 3923.50.0000 (115)

7315.12.0080

(169)

8501.40.4020

(223)

8712.00.3500

(8) 3926.20.9050 (62)

4010.35.9000

(116)

7321.11.1060

(170)

8501.40.4020

(224)

8712.00.4800

(9) 4015.19.1010 (63) 4015.19.1010 (117)

7321.90.6090

(171)

8501.40.4040

(225)

8714.91.3000

(10) 4819.50.4060 (64)

4015.19.1010

(118)

7326.90.8688

(172)

8501.40.4040

(226)

8714.95.0000

(11) 5603.12.0090 (65)

4016.99.6050

(119)

7326.90.8688

(173)

8501.40.4040

(227)

8716.40.0000

(12) 5603.14.9090 (66)

4016.99.6050

(120)

7326.90.8688

(174) 8501.40.6040 (228)

8716.90.3000

(13) 5603.92.0090 (67) 4016.99.6050 (121)

7501.20.0000

(175)

8504.40.6018

(229)

8716.90.5060

(14) 5603.93.0090 (68)

4202.12.8130

(122)

7616.99.5190

(176)

8504.40.8500

(230)

9001.90.9000

(15) 6505.00.8015 (69)

4202.92.0400

(123)

8205.51.3030

(177)

8504.40.8500

(231)

9011.80.0000

(16) 8424.90.9080 (70)

4202.92.3120

(124)

8207.90.7585

(178)

8504.40.8500

(232)

9011.80.0000

(17) 8425.31.0100 (71)

4202.92.3131

(125)

8207.90.7585

(179)

8504.40.9580

(233)

9015.90.0190

(18) 8708.50.8500 (72)

4202.92.3131

(126)

8302.50.0000

(180)

8504.50.8000

(234)

9015.90.0190

(19) 8712.00.1510 (73)

4202.92.3131

(127)

8302.50.0000

(181 )

8504.50.8000

(235)  9015.90.0190
(20) 8712.00.1520 (74)

4205.00.8000

(128)

8303.00.0000

(182)

8504.50.8000

(236)

9025.90.0600

(21) 8712.00.1550 (75)

4402.10.0000

(129)

8409.91.9290

(183)

8508.11.0000

(237)

9025.90.0600

(22) 0304.83.5015 (76)

4411.93.9090

(130)

8409.91.9990

(184)

8508.11.0000

(238)

9029.10.8000

(23) 0803.90.0045 (77)

4820.10.2060

(131)

8409.91.9990

(185)

8511.40.0000

(239)

9106.90.8500

(24) 0813.30.0000 (78)

4823.61.0040

(132)

8409.91.9990

(186)

8512.90.2000

(240)

9401.61.6011

(25) 0813.40.4000 (79) 4823.70.0020 (133)

8412.90.9081

(187)

8516.29.0030

(241)

9401.71.0031

(26) 0813.40.9000 (80) 4823.70.0040 (134)

8413.20.0000

(188)

8516.29.0030

(242)

9401.71.0031

(27)

0813.50.0020

(81) 4823.70.0040 (135)

8413.20.0000

(189)

8516.29.0090

(243)

9401.79.0015

(28)

1605.10.2010

(82)

4823.70.0040

(136)

8413.30.9060

(190)

8516.29.0090

(244)

9401.79.0035

(29)

1605.10.2022

(83)

5007.20.0065

(137)

8413.30.9090

(191)

8516.60.4070

(245)

9401.79.0035

(30)

1605.10.2030

(84)

5007.20.0085

(138)

8414.10.0000

(192)

8516.80.8000

(246)

9401.79.0050

(31)

1605.10.2090

(85)

5108.10.8000

(139)

8414.20.0000

(193)

8525.80.3010

(247)

9401.90.4080

(32) 2805.11.0000 (86)

5407.52.2060

(140)

8414.59.6540

(194)

8525.80.3010

(248)

9401.90.5081

(33)

2917.12.5000

(87)

5407.52.2060

(141)

8414.59.6560

(195)

8525.80.3010

(249)

9401.90.5081

(34)

2926.20.0000

(88)

5407.52.2060

(142)

8414.80.1685

(196)

8525.80.3010

(250)

9401.90.5081

(35)

2929.90.5090

(89)

5407.61.9930

(143)

8414.90.1040

(197)

8531.20.0040

(251)

9403.20.0050

(36)

3204.17.9050

(90)

5407.61.9930

(144)

8418.50.0080

(198)

8534.00.0020

(252)

9403.20.0050

(37) 3401.30.5000 (91)

5407.61.9935

(145)

8418.50.0080

(199)

8534.00.0020

(253)

9403.20.0080

/9403.20.0081

(38)

3401.30.5000

(92)

5407.72.0015

(146)

8423.81.0030

(200)

8534.00.0040

(254)

9403.20.0081

(39)

3402.20.1100

(93)

5501.20.0000

(147)

8423.81.0040

(201)

8536.69.8000

(255)

9403.20.0081

(40)

3702.44.0160

(94)

5501.40.0000

(148)

8425.19.0000

(202)

8537.10.9170

(256)

9403.20.0090

(41)

3801.10.5000

(95)

5512.19.0090

(149)

8425.31.0100

(203)

8537.10.9170

(257)

9403.20.0090

(42)

3801.10.5000

(96)

5514.22.0020

(150)

8425.49.0000

(204)

8543.70.9100

(258)

9403.82.0015

(43)

3801.90.0000

(97)

5603.12.0090

(151)

8426.30.0000

(205)

8544.42.2000

(259)

9403.89.6003

(44)

3808.93.1500

(98)

5603.94.9090

(152)

8452.29.9000

(206)

8544.42.9010

(260)

9403.90.6005

(45)

3810.90.2000

(99)

5701.90.1010

(153)

8470.90.0190

(207)

8544.42.9090

(261)

9403.90.8041

(46)

3815.11.0000

(100)

5705.00.2030

(154)

8471.60.9050

(208)

8544.42.9090

(262)

9405.40.8410

(47)

3815.19.0000

(101)

5810.92.9080

(155)

8471.60.9050

(209)

8544.42.9090

(263)

9405.40.8440

(48) 3815.19.0000 (102)

6001.10.2000

(156)

8473.30.1180

(210)

8546.20.0090

(264)

9405.40.8440

(49)

3815.19.0000

(103)

6003.40.6000

(157)

8473.30.1180

(211)

8546.90.0000

(265)

9405.50.4000

(50) 3815.19.0000 (104)

6802.99.0060

(158)

8473.30.1180

(212)

8708.29.5060

(266)

9405.99.4090

(51)

3815.19.0000

(105)

6802.99.0060

(159)

8473.30.5100

(213)

8708.29.5060

(52)

3815.19.0000

(106)

6909.11.2000

(160)

8479.89.9499

(214)

8708.30.5090

(53)

3815.19.0000

(107)

7007.19.0000

(161)

8481.80.5090

(215)

8708.40.7570

(54)

3815.19.0000

(108)

7007.19.0000

(162)

8481.80.5090

(216)

8708.40.7570

In addition to providing the list of extended exclusions, in Annex B of the notice, USTR provides the public with a list comparing the original product exclusions’ HTSUS Headings and the HTSUS numbers for the newly excluded items:

 

Original Product Exclusions Extension of Product Exclusions
Old Chapter 99 Heading NEW Chapter 99 Heading
9903.88.13 9903.88.56
9903.88.18 9903.88.56
9903.88.33 9903.88.56
9903.88.34 9903.88.56
9903.88.35 9903.88.56
9903.88.36 9903.88.56
9903.88.37 9903.88.56
9903.88.38 9903.88.56
9903.88.40 9903.88.56
9903.88.41 9903.88.56
9903.88.43 9903.88.56
9903.88.45 9903.88.56
9903.88.46 9903.88.56
9903.88.48 9903.88.56

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.

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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