On June 24, 2019, the Office of the United States Trade Representative (USTR) provided the public with an exclusion process for items included subjected to Section 301 Tariffs. Specifically, the exclusions related to products included on List 3, which went into effect on September 24, 2018.
Originally, List 3 imposed 10 percent ad valorem duties on 5,757 full and partial subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) and had an annual trade value of $200 Billion. Months later, in May 2019, the 10 percent ad valorem duties were increased to 25 percent.
Following the announcement of the exclusion process in June 2019, on August 7, 2019, USTR began accepting exclusion requests that were set to expire on August 7, 2020. USTR proceeded to grant exclusion in September, October, November, and December 2019, and January, February, March, April, May, June, and August 2020. To date, USTR has granted 16 sets of exclusion for items subject to List 3.
The decision to grant exclusions were based on Requesters’ answers to questions addressing the following factors:
- Whether the particular product is available only from China and, specifically, whether the particular product and/or a comparable product is available from sources in the United States and/or third countries.
- Whether the imposition of additional duties on the particular product would cause severe economic harm to the requestor or other U.S. interests.
- Whether the particular product is strategically important or related to “Made in China 2025” or other Chinese industrial programs.
On October 7th, USTR published two (2) separate Federal Register Notices pertaining to List 3 exclusions, initially set to expire on August 7, 2020.
- 85 FR 63329 Pages 63329-63330 (2 pages): The amendment announced is retroactive to the date the original exclusion was published and does not further extend the period for the original exclusion. Practically, this notice applies to items previously granted an exclusion that were set to expire on August 7, 2020:
Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on September 24, 2018:
|Notes:||Chapter 99 Heading
|(Old) Modified by deleting…||(New) … and, in lieu thereof, inserting…|
|20(w)(27)||9903.88.18||“heading 8471 not incorporating
goods of headings 8541 or 8542”
|“heading 8471, whether or not incorporating fan hubs or LEDs but not incorporating other goods of headings 8541 or 8542”|
2. 85 FR 63332 Pg:63332-63333 (2 pages): Additionally, USTR announced that other List 3 exclusions were to be granted extensions through the end of the year. These amendments will apply to exclusion extensions previously announced on August 11, 2020. These exclusions were originally set to expire on August 7, 2020, but now expire on December 31, 2020:
Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 7, 2020:
|Notes:||Chapter 99 Heading||(Old) Modified by deleting…||(New) … and, in lieu thereof, inserting…|
|20(iii)(57)||9903.88.56||‘Mixtures containing 2-(dimethylamino) ethanol (CAS No. 108–01–0)’’||‘‘Mixtures containing N,N Dimethyl Dodecan-1-amine (CAS No. 112–18–5) and N,N-dimethyltetradecan-1-amine (CAS No. 112–75–4)’’|
|20(iii)(159)||9903.88.56||‘‘heading 8471 not incorporating goods of headings 8541 or 8542’’||“heading 8471, whether or not incorporating fan hubs or LEDs but not incorporating other goods of headings 8541 or 8542”|
For background information on China Tariffs and numerous ways to mitigate the effect of the China tariffs, read 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.