Section 301 Tariff Exclusions May Be Extended

The Office of the U.S. Trade Representative (USTR) will consider requests to extend certain tariff exclusions for an additional year for companies that received a year-long exclusion from the first round of Section 301 tariffs on Chinese-origin goods. The first round of exclusions took effect on December 28, 2018, sparing 31 products covered by approximately 1,000 requests. The 12-month exclusions are set to expire on December 28, 2019, and companies may have the chance to extend their reprieve another year. USTR will not be considering extensions of any other exclusions that have been granted.

From November 1 through November 30, 2019, USTR will accept arguments in favor of, and in opposition to, extending the previously granted exclusions. When evaluating the possible extension of each exclusion, USTR will focus on whether the particular product remains available only from China. To address this factor, companies should state the following:

  1. Whether the particular product or a comparable product is available from sources in the United States or in third countries.
  2. Any changes in the global supply chain since July 2018 with respect to the particular product, or any other relevant industry developments.
  3. The efforts, if any, the importers or U.S. purchasers have undertaken since July 2018 to source the product from the United States or third countries.

The extension of tariff exclusions comes as the U.S. and China are trying to reach a much-anticipated agreement to cool trade tensions between the countries that have continued for over two years.

Unlike the filing of product exclusion requests on List 3 and 4A which are submitted through the Section 301 exclusion portal, exclusion extension requests will need to be submitted through www.regulations.gov, Docket No. USTR-2019-0019, using Form A.

Additional Assistance

For assistance with Section 301 duties and product exclusion requests, or any other customs and importation matters, please contact Jon P. Yormick, Special Counsel, at jyormick@phillipslytle.com, (216) 928-3474, (716) 847-7006; or Koya Choi, Associate, at kchoi@phillipslytle.com, (716) 847-7040