Industry News

Section 301 Tariff Product Exclusions Granted by USTR

Margaret Lange | M.E. Dey & Co.

On December 21st, The U.S Trade Representative issued its first list of product exclusions from the Section 301 tariffs.

The list was provided in the Friday, December 28, 2018, Federal Register Notice. The USTR list grants full or partial exemptions for 21 tariff subheadings from the initial list (List 1) of $34 billion in Chinese prod¬ucts. The exclusions apply retroactively to July 6, 2018; the date that the List 1 tariffs took effect, and will extend for one year from the date of publication in the Federal Register. All importers will be able to take advantage of these exclusions; regardless of whether the importer filed an exclusion request.

The exclusions are established in two different formats:

1) Full exclusion of an existing 10-digit subheading; regardless of description
8412.21.0075 Hydraulic Power Engines and Motors
8418.69.0120 Drinking Water Coolers, self-contained
8480.71.8045 Molds, Injection type
8482.10.5044 Radial Bearings, over 9mm but under 30mm
8482.10.5048 Radial Bearings, over 30mm but under 52mm
8482.10.5052 Radial Bearings, over 52mm but under 100mm
8525.60.1010 Transceivers, Citizen Band (CB) radios

2) Exclusion based on specific product descriptions provided for in the following statistical reporting numbers (See Annex to the notice for specific qualifying product descriptions)
8407.21.0080 Certain Spark-ignition engines, Outboard marine
8412.21.0030 Certain Welded hydraulic linear engines and motors
8421.19.0000 Certain Salad spinners
8421.21.0000 Certain Water filtration apparatus with installation kit
8425.39.0100 Certain Winches operated manually
8428.32.0000 Certain Elevators
8428.33.0000 Certain Belt conveyors
8419.90.2000 Certain Paper stretchers
8420.10.9080 Certain Rollers for embossing paper
8439.99.1000 Certain Parts for papermaking machines
8466.92.5010 Certain Workstands for miter saws
8481.90.9040 Certain Cock handle assemblies
9022.14.0000 Certain Radiation therapy systems
9032.10.0030 Certain Thermostats for HVAC systems

The USTR notice provides a new HTS subheading (9903.88.05) to be used for qualifying products (i.e., those that would otherwise be covered by List 1 subheading 9903.88.01).

The product exclusions, detailed in a new U.S. Note 20(h) to subchapter III of chapter 99, and the new subheading (9903.88.05) will be added to the tariff schedule by the International Trade Commission (ITC). On December 31, 2018, U.S. Customs and Border Protection advised, in CSMS#18-000757, that they will provide entry guidance and instructions on implementation at the conclusion of the government funding hiatus. Any updates to the Automated Customs Environment (ACE) will be implemented 10 business days after the shutdown has concluded. Until these updates are completed, entry and entry summaries must be submitted without the Chapter 99 product exclusion number.