301 Exclusions Archives | Customs & International Trade Law Blog

ICYMI: USTR Opens Exclusion Process for Domestic Manufacturing Machinery

On October 15, 2024, the Office of the United States Trade Representative (USTR) announced that it is opening a process for interested persons to request that certain machinery be temporarily excluded from Section 301 duties in the Investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation.

301 Investigation Background

In August 2017, USTR initiated an investigation into China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The agency released a report of its findings in March 2018 and in June 2018 began imposing additional duties on products of China in four tranches.

Under the Trade Act of 1974, the USTR is required to conduct a four-year review if they receive an appropriate request to continue an action taken under Section 301. The agency is required to review:

(A) the effectiveness in achieving the objectives of section 301 of (i) such action, and (ii) other actions that could be taken (including actions against other products or services), and
(B) the effects of such actions on the United States economy, including consumers.

In accordance with this requirement, USTR announced in May 2022 that it was commencing this review and opened a docket for interested persons to submit comments.

The agency received nearly 1,500 comments. Throughout 2023 and early 2024, USTR and the Section 301 Committee (a USTR-led, interagency Trade Policy Staff Committee) held numerous meetings with agency experts to consider the comments received.

In May 2024, USTR issued a formal proposal in […]

By Jennifer Diaz|2024-10-25T12:59:25-04:00October 25, 2024|301 INVESTIGATIONS, U.S. Trade Representative (USTR)|Comments Off

USTR Finalizes Action on 301 Tariffs

The United States Trade Representative (USTR) announced final tariff modifications following their statutory review of the Section 301 investigation of the People’s Republic of China’s (PRC) Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. The final modifications include tariff increases on several products including critical minerals, batteries, and semiconductors.

301 Investigation Background

In August 2017, USTR initiated an investigation into China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The agency released a report of its findings in March 2018 and in June 2018 began imposing additional duties on products of China in four tranches.

Under the Trade Act of 1974, the USTR is required to conduct a four-year review if they receive an appropriate request to continue an action taken under Section 301. The agency is required to review:

(A) the effectiveness in achieving the objectives of section 301 of (i) such action, and (ii) other actions that could be taken (including actions against other products or services), and
(B) the effects of such actions on the United States economy, including consumers.

In accordance with this requirement, USTR announced in May 2022 that it was commencing this review and opened a docket for interested persons to submit comments.

The agency […]

By Jennifer Diaz|2024-09-17T15:54:25-04:00September 17, 2024|301 INVESTIGATIONS, China, Countries, U.S. Trade Representative (USTR)|Comments Off

White House Announces Further Section 301 Tariff Hikes on Chinese Goods

Today the White House announced sweeping new tariffs on Chinese goods. The tariffs will apply to a range of sectors including semiconductors, steel and aluminum, batteries, and medical products.

Electric vehicles were a focus of the announcement, with tariffs to increase from 25% to 100% this year.

Impacted Industries

The new tariffs apply to $18 billion worth of Chinese imports in the following sectors:

Steel and aluminum – increase from 0-7.5% to 25% in 2024
Semiconductors – increase from 25% to 50% by 2025
Electric vehicles (TVs) – increase from 25% to 100% in 2024
Batteries
- Lithium-ion EV batteries – increase from 7.5% to 25% in 2024
- Lithium-ion non-EV batteries – increase from 7.5% to 25% in 2026
- Battery parts – increase from 7.5% to 25% in 2024
- Natural graphite and permanent magnets – increase from 0% to 25% in 2026
- Certain critical minerals – increase from 0% to 25% in 2024
Solar cells – increase from 25% to 50% in 2024
Ship-to-shore cranes – increase from 0% to 25% in 2024
Medical products
- Syringes and needles – increase from 0% to 50% in 2024
- Certain PPE products – increase from 0-7.5% to 25% in 2024
- Rubber medical gloves – increase from 7.5% to 25% in 2026

Why Now?

The announcement follows a statutorily required two-year government review of “Section 301” duties that were first imposed during the Trump Administration. The Special 301 review considers the current state of global IP protection and enforcement, unfair innovation policies, and market access barriers. […]

By Jennifer Diaz|2024-06-20T21:36:05-04:00May 14, 2024|301 INVESTIGATIONS, Special 301, U.S. Trade Representative (USTR)|Comments Off

Upcoming Deadline to File Comments: USTRs Section 301 China Tariff Exclusions Proceeding

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.

Exclusion Background

In […]

By Jennifer Diaz|2024-01-15T20:21:09-05:00January 5, 2024|China, Import, Special 301, U.S. Trade Representative (USTR)|Comments Off

Customs and Trade Law Snapshot

Here is a recap of the latest customs and international trade law news:

The Bureau of Industry and Security (BIS)

BIS published a report summarizing the findings of a Department of Commerce investigation into the effect of imports of titanium sponge on the national security of the United States.
BIS is seeking public comments concerning the imposition of export controls on certain Brain-Computer Interface (BCI) emerging technology, particularly with respect to its impact on U.S. national security
- Comments due by December 10, 2021.
- Contact us at info@diaztradelaw.com for help submitting your comment.
BIS published this final rule to amend the Export Administration Regulations (EAR) to update the AG Common Control List for dual-use biological equipment.
- This rule is effective October 5, 2021.

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By Jennifer Diaz|2021-11-04T16:14:39-04:00November 5, 2021|301 INVESTIGATIONS, Best Practices, China, China Trade War, EAR, Export, Forced Labor, Import, International Law, International Trade, Special 301, Supply Chain, U.S. Bureau of Industry and Security (BIS), U.S. Customs and Border Protection (CBP), U.S. Department of Labor (DOL), U.S. Trade Representative (USTR), Uncategorized, Vietnam|Comments Off

Want Your 301 Exclusion Back? Comment Now!

USTR Proposes Reinstating Exclusions

On October 6, 2021, the Office of the U.S. Trade Representative (“USTR”) a nnounced in the Federal Register that the agency is considering a possible reinstatement of 549 EXCLUSIONS for Section 301 duties on products imported from China that had expired on December 31, 2020.

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By Jennifer Diaz|2022-07-07T12:43:46-04:00October 6, 2021|301 INVESTIGATIONS, China, China Trade War, Import, International Trade, Trade Policy, U.S. Trade Representative (USTR)|1 Comment

Potential Relief from China Tariffs Coming

Background on Section 301 Tariffs

A key element of the U.S.-China trade war, initiated under the Trump administration and continuing through Biden’s first term, was the imposition of China tariffs under Section 301. Section 301 is a mechanism via which the President can retaliate against foreign countries that violate U.S. trade agreements or engage in acts that are “unjustifiable” or “unreasonable” and burden U.S. commerce. With regard to China, the U.S. Trade Representative (“USTR”) found that China’s acts, policies, and practices related to intellectual property and innovation are unreasonable or discriminatory and burden or restrict U.S. commerce. Accordingly, a broad set of tariffs were instituted. Section 301 tariffs for goods originating from China have been so expansive that U.S. Customs revenue has nearly doubled from $41.6 billion in FY 2018 to $71.9 billion in FY 2019 and $74.4 billion in FY 2020.

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