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Additional China List 4A Tariff Exclusions Considered for Extension

Friday, July 17, 2020
Sandler, Travis & Rosenberg Trade Report

An extension for up to 12 months of recent and forthcoming exclusions from the Section 301 additional 7.5 percent tariff on List 4A goods from China is under consideration by the Office of the U.S. Trade Representative. Comments may be submitted between July 15 and Aug. 14.

For more information on Section 301 tariffs, including exclusions and extensions, please contact Nicole Bivens Collinson or Kristen Smith.

USTR previously announced that it is considering the extension of five sets of exclusions from the tariff on List 4A goods. USTR is now also considering an extension of the sixth set of exclusions, which was issued July 10, and a seventh set of exclusions to be published “in the coming days.” All current and forthcoming List 4A exclusions are slated to expire Sept. 1, 2020.

Each exclusion will be evaluated for possible extension on a case-by-case basis. The focus of this evaluation will be whether the product at issue remains available only from China.

In requesting an extension of an exclusion, commenters should submit a comment form with the following information.

- full legal name of the organization making the comment, whether it is a third party (e.g., law firm, trade association, or customs broker) submitting on behalf of an organization or industry, and (if so) the name of the third-party organization

- the number for the exclusion at issue, as provided in the annex of the applicable Federal Register notice

- whether the product is subject to an antidumping or countervailing duty order

- whether the commenter supports or opposes extending the exclusion and why

- whether the excluded product or comparable products are available from sources in the U.S. or third countries and any changes in the global supply chain for the product since September 2019

- efforts undertaken since September 2019 to source the product from the U.S. or third countries

- the value and quantity of the excluded product purchased in 2018 and 2019 and whether these purchases are from a related company (and, if so, its name and relationship to the requester)

- whether Chinese suppliers have lowered their prices for the excluded product following the imposition of tariffs

- the value and quantity of the excluded product purchased from domestic and third-country sources in 2018 and 2019

- the commenter’s gross revenue for 2018 and 2019

- whether the excluded product is sold as a final product or as an input

- whether the imposition of tariffs on the excluded product will result in severe economic harm to the commenter or other U.S. interests

- any additional information in support of the extension request

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