On December 26, 2023, the Office of the United States Trade Representative (“USTR”) announced that it will extend 352 reinstated exclusions and 77 COVID-related exclusions on goods from China until May 31, 2024.
The exclusions refer to additional duties imposed on goods from China pursuant to an earlier Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
In December 2022, the agency determined to extend the exclusions and extended them again in May 2023 and September 2023 through December 31, 2023. This latest Federal Register notice announces the agency’s determination to further extend the exclusions until May 31, 2024 and open up the ability to comment on the exclusions. The public docket will open on January 22, 2024 and will close on February 21, 2024.
This latest extension provides USTR additional time to orderly phase out certain exclusions and align others with the objectives determined during the agency’s ongoing four-year review of Section 301 China tariffs.
The agency also announced that it will open a docket to gather public comments on whether to further extend particular exclusions. The focus of the evaluation will be on:
- The availability of products covered by the exclusion from sources outside China
- Efforts undertaken to source products covered by the exclusion
- Why additional time is needed
- On what timeline, if any, the sourcing of products covered by the exclusion is likely to shift outside of China
USTR will also consider whether or not extending the exclusion will impact U.S. interests.