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USTR Considering Extension of China Tariff Exclusions

Posted May 04, 2020


The U.S. Trade Representative is presently considering an extension for up to 12 months of specific exclusions from the Section 301 punitive tariffs imposed on List 1 and List 2 goods from China. 
POTUS Seal on Globe Background

List 1 Exclusions


These exclusions were covered previously as part of the first round of Section 301 tariffs placed on imports of Chinese goods (complete list here) with an annual trade value of approximately $34 billion. Exclusions from the 25% tariff imposed on List 1 goods as of July 6, 2018 were issued in July 2019 and are set to expire July 9, 2020.

This batch of exclusions included 110 specially prepared product descriptions, which covered 362 separate requests for duty relief. The USTR is considering a possible one-year extension for these exclusions and is seeking public comment on whether to extend particular ones.

List 2 Exclusions


These exclusions were covered previously as part of the second round of Section 301 tariffs placed on imports of Chinese goods (complete list here) with an annual trade value of approximately $16 billion. Exclusions from the 25% tariff imposed on List 1 goods as of August 23, 2018 were issued in July 2019 and are set to expire July 31, 2020.

This batch of exclusions included 69 specially prepared product descriptions, which covered 292 separate requests for duty relief. The USTR is considering a possible one-year extension for these exclusions and is seeking public comment on whether to extend particular ones. 

USTR Review Criteria  


The USTR indicates that requests for extension will be considered on a case-by-case basis. The focus of the evaluation will be “whether, despite the first imposition of these additional duties in July 2018, the particular product remains available only from China.” Additionally, the following issues should be addressed in submitting any comments:

  • Whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries.
  • Any changes in the global supply chain since August 2018 as to the particular product or any other relevant industry developments.
  • The efforts, if any, the importers or U.S. purchasers have undertaken since August 2018 to source the product from the United States or third countries.

The USTR notes that it will continue to consider whether the imposition of additional duties on the products covered by the exclusion will result in severe economic harm to the commenter or other U.S. interests.

Submitting Comments 


Those wishing to comment must do so electronically, preferably by completing the Exclusion Extension Comment Form, which has recently been revised into one form that combines the previously separate public and confidential forms. Fields on the form marked as Business Confidential Information (BCI) will not be publicly available when comments are posted on the docket (uploaded supporting documents can also be marked as public of BCI).

Comments will be accepted between May 1 and June 1, 2020. All submissions must be made electronically via the www.regulations.gov portal on Docket Number USTR-2020-0017 (List 1) or USTR-2020-0018 (List 2)

Need More Information


If you have any questions about these tariff exclusions or require assistance preparing a submission requesting extension, don’t hesitate to contact one of our trade experts today.

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