The Office of the U.S. Trade Representative recently announced additional exclusions from the Trump administration’s Section 301 punitive tariffs on goods from China. These exclusions, covering a total of 437 product descriptions, are the result of a product exclusion process initiated by the USTR on June 24, 2019, to provide duty relief for certain goods which, among other things, are available only from China and the imposition of additional duties on them “would cause severe economic harm to the requestor or other U.S. interests.”
Coverage & Effective Dates:
The newly approved exclusions will be effective as follows:
- Exclusions for List 1 goods (310 product descriptions covering 724 separate exclusion requests) will be retroactive to July 6, 2018, and remain in place through Sept. 20, 2020, and must be claimed using new HTSUS subheading 9903.88.14
- Exclusions for List 2 goods (89 product descriptions covering 400 exclusion requests) will be retroactive to August 23, 2018, and remain in place through September 20, 2020, and must be claimed using new HTSUS subheading 9903.88.17
- Exclusions for List 3 goods (38 product descriptions covering 46 exclusion requests) will be retroactive to September 24, 2018, and remain in place until August 7, 2020 — now the uniform beginning and expiration dates for all List 3 exclusions that have been or may be granted — and must be claimed using new HTSUS subheading 9903.88.18.
To eliminate the potential of double taxation, USTR has also made technical amendments to lists 3, 4A, and 4B to state that, effective Sept. 24, 2018, the Section 301 additional tariff will not be imposed on goods classified under any of 39 subheadings “if the applied rate of duty for an entry is derived from another subheading and if the entry, for this reason, already is subject to the additional tariff.”
Duty Refunds Possible
These exclusions are available for any product that meets the specified product description, regardless of whether the importer filed an exclusion request. Importers should therefore review the lists of affected goods and apply for refunds of any tariffs paid on such goods since the applicable retroactive effective date.
Need More Information?
Should you have any questions about taking advantage of these additional product exemptions or possibly obtaining refunds of any tariff overpayments, don’t hesitate to contact us – our trade experts are here to help.