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More China Tariff Exclusion Requests Denied; List 3 Requests Due Sept. 30

Thursday, August 01, 2019
Sandler, Travis & Rosenberg Trade Report

Hundreds more requests for exclusions from the Section 301 25 percent additional tariff on imports from China have recently been denied but there have been new approvals as well. The Office of the U.S. Trade Representative is continuing to review outstanding exclusion requests for List 1 and List 2 goods, imports of which are collectively worth about $50 billion, and has set a Sept. 30 deadline for requests for List 3 goods, which are worth about $200 billion.

List 1

Information from USTR indicates that of the 10,837 exclusion requests submitted for List 1 goods, as of July 26 there were 6,624 denials (up from 6,288) and 2,812 approvals (up from 2,400).

A full list of approved List 1 exclusions can be found here. Importers should be aware that approved exclusions are available for any product that meets the specific product description, regardless of whether the importer filed an exclusion request. In addition, the scope of each exclusion is governed by the scope of the 10-digit subheading or the specific product description to which it applies, not by the product descriptions set out in any particular request.

Exclusions granted are retroactive to July 6, 2018, and importers of affected goods may apply for refunds of tariffs paid on covered goods since that date.

All of the remaining List 1 exclusion requests (1,388, down from 2,096) are being reviewed with U.S. Customs and Border Protection to determine whether the exclusions would be administrable.

List 2

With respect to List 2 goods, USTR has denied 1,319 of the 2,931 exclusion requests received (up from 1,259) but recently issued its first 292 approvals, which are retroactive to Aug. 23, 2018. One request is still undergoing substantive review (down from 81) and 1,306 (down from 1,577) are being reviewed for administrability.

List 3

USTR began accepting tariff exclusion requests for List 3 goods as of June 30 and all such requests must be submitted by Sept. 30. Companies that import goods on this list should seek exemptions, which, if granted, will be effective for one year and retroactive to Sept. 24, 2018, meaning refunds of tariffs already paid could be obtained.

List 4

President Trump announced in June the indefinite suspension of plans to impose additional tariffs of up to 25 percent on List 4 goods (imports of which are valued at approximately $300 billion) while the U.S. and China continue negotiations on a bilateral trade agreement.

Customs and trade law firm Sandler, Travis & Rosenberg can help companies understand whether their products are among those that have been or might be excluded from the Section 301 tariffs. ST&R has also been successful helping companies get specific tariff numbers and products removed from the lists of those subject to these tariffs. For more information, please contact your ST&R professional or Sandler, Travis & Rosenberg, P.A.

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