Industry News

Product Exclusions from Section 301 Tariffs Granted as a New Round of Tariffs is Proposed

Margaret Lange | M.E. Dey & Co.

Since July of 2018, under authority of Section 301 of the Trade Act of 1974, The White House and the U.S. Trade Representative (USTR) have assessed three tranches of additional tariffs of 10-25% on $250 Billion in goods imported from China. On August 1st, President Trump announced in a Tweet, that starting on September 1st, the U.S. will assess additional tariffs of 10% on the remaining $300 billon of goods imported from China.

Tranche 1

  • $34 Billion U.S. Imports / 818 Products
  • 25% Additional Duty – Effective July 6, 2018
  • Deadline for filing Exclusions – Oct. 9, 2018
  • Six lists of Product Exclusions have been granted.

Tranche 2

  • $16 Billion U.S. Imports / 284 Products
  • 25% Additional Duty – Effective August 23, 2018
  • Deadline to request Exclusions – Dec. 18, 2018
  • One list of Product Exclusions has been granted.

Tranche 3

  • $200 Billion U.S. Imports / 6,031 Products
  • 10% Additional Duties – Effective Sept. 24, 2018
  • 10% “On the Water Provision” – Effective 5/10/19-6/15/19
  • 25% Additional Duties – Effective June 15, 2019
  • Portal open for Exclusion Request June 30, 2019 – September 30, 2019
  • One list of Product Exclusions has been granted.

Tranche 4

  • $300 Billion U.S. Imports / Remaining Products
  • 10% Projected Additional Duties
  • Proposed Effective Date – September 1, 2019
  • Comment Period – Start June 10, 2019 / Public Hearings June 17, 2019

 

The first three tranches have been open for importers to request exclusions from the additional tariffs. To date, the USTR has released six lists of granted exclusions for products subject to the first tranche of 301 tariffs, one list of exclusions for the second tranche and one list for the third tranche. All importers are able to take advantage of these exclusions, regardless of whether the importer filed an exclusion request. The exclusions are retroactive to the effective date of the 301 tariff tranche.

301 Tranche Exclusion List  Exclusion Date     Federal Register Notice
1 1 Dec. 28, 2018     Federal Register / Vol. 83, No. 248
1 2 Mar. 25, 2019     Federal Register / Vol. 84, No. 57
1 3 Apr. 18, 2019     Federal Register / Vol. 84, No. 75
1 4 May 14, 2019     Federal Register / Vol 84, No. 93
1 5 June 4, 2019     Federal Register / Vol 84, No. 107
1 6 July 9, 2019     Federal Register / Vol 84, No. 131
2 7 July 31, 2019     Federal Register / Vol 84, No. 147
3 8 August 5, 2019     USTR Notice, August 5, 2019

 

Some exclusions have been granted at the full 10 digit HTS code, however, many of the exclusions are specific to product descriptions. Importers must exercise due diligence in reviewing the product exclusion detail in the Federal Register notices to determine if their product qualifies for a granted exclusion. For more information, contact our office or check our website for our 301 Whitepaper and Chinese Tariff Tracker.

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