Industry News

New Section 301 China Tariff Exclusions Granted as Others Start to Expire

 

On December 31, 2019, the USTR announced new product exclusions from the third list of the Section 301 Chinese Tariffs. The Exclusions include two ten-digit HTS subheadings and 66 different exclusions specific to product description, which cover 81 separate exclusion requests. The product exclusions retroactively apply to entries submitted on or after September 24, 2018 and expire on August 7, 2020.

The first list of granted product exclusions, for the first tranche of $34 Billion in Chinese imports, expired on December 28, 2019. Following a comment period for extension of the exclusions, the USTR granted only six products, from the list of 31, for exclusion extensions to December 28, 2020. All other products on the first list of exclusions, entered into the U.S. on or after December 28, 2019, are subject to the 25% Section 301 tariff with no exception.

Now, the Second list of granted product exclusions is set to expire on March 25, 2020. The USTR is inviting public comments for extending particular exclusions. The comment period will open January 15, 2020 and close February 15, 2020. The December 30, 2019 Federal Register notice provides instructions for Importers to file comments for extending specific product exclusions.

To date, the USTR has published 18 separate lists of granted product exclusions from the first three tranches of Section 301 tariffs. For the first two tranches, the granted exclusions were set to expire 12 months from the date of the Federal Register notice. The exclusion granted for the third tranche of tariffs expire on August 7, 2020, regardless of the date of the Federal Register Notice.

The chart below provides the expiration date for each of the current product exclusion lists. For importers who are taking advantage of any of the exclusions, it will be important to track the expiration dates on the exclusions, and if appropriate, submit comments for extensions when the USTR opens the respective comment period.

301 Tranche Exclusion List Effective  Date Federal Register Notice Expiration  Date
1 1 Dec. 28, 2018 Federal Register / Vol. 83, No. 248   Dec. 28, 2019
1 2 Mar. 25, 2019 Federal Register / Vol. 84, No. 57   March 25, 2020
1 3 Apr. 18, 2019 Federal Register / Vol. 84, No. 75   April 18, 2020
1 4 May 14, 2019 Federal Register / Vol 84, No. 93   May 14, 2020
1 5 June 4, 2019 Federal Register / Vol 84, No. 107   June 4, 2020
1 6 July 9, 2019 Federal Register / Vol 84, No. 131   July 9, 2020
2 7 July 31, 2019 Federal Register / Vol 84, No. 147   July 31, 2020
3 8 Aug. 7, 2019 Federal Register / Vol 84, No. 152   Aug. 7, 2020
1 9 Sept. 20, 2019 Federal Register / Vol 84, No. 183   Sept. 20,2020
2 10 Sept. 20, 2019 Federal Register / Vol 84, No. 183   Sept. 20, 2020
3 11 Sept. 20, 2019 Federal Register / Vol 84, No. 183   Aug. 7, 2020
1 12 Oct. 2, 2019 Federal Register / Vol 84, No. 191   Oct. 2, 2020
2 13 Oct. 2, 2019 Federal Register / Vol 84, No. 191   Oct. 2, 2020
3 14 Oct. 28, 2019 Federal Register / Vol 84, No. 208   Aug. 7, 2020
3 15 Nov. 13, 2019 Federal Register / Vol 84, No. 219   Aug. 7, 2020
3 16 Nov. 29, 2019 Federal Register / Vol 84, No. 230   Aug. 7, 2020
3 17 Dec. 17, 2019 Federal Register / Vol 84, No. 242   Aug. 7, 2020
3 18 Jan. 6, 2020 Federal Register / Vol 85, No. 3   Aug. 7, 2020

 

All importers can take advantage on any granted product exclusion. If you are not sure if your product is subject to the Section 301 Tariffs or qualifies for an exclusion, you can check the Chinese Tariff Tracker and Exclusions tabs on medey.com.

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