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Nearly All China List 3 Tariff Exclusions Being Considered for Extension

Tuesday, May 05, 2020
Sandler, Travis & Rosenberg Trade Report

An extension for up to 12 months of almost all the exclusions granted thus far from the Section 301 tariff on List 3 goods from China is under consideration by the Office of the U.S. Trade Representative. Comments may be submitted until June 8.

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

List 3 goods were subject to an additional 10 percent tariff beginning Sept. 24, 2018, a figure that was increased to 25 percent as of May 10, 2019. Since August 2019 USTR has issued 11 sets of exclusions from this tariff, all of which are set to expire Aug. 7. A comprehensive list of these exclusions can be found here (please note that this list also includes exclusions granted on April 24, 2020, which are not currently being considered for extension).

USTR is now considering an extension of these exclusions and will evaluate each on a case-by-case basis. The focus of this evaluation will be whether the product at issue remains available only from China.

Those requesting an extension of an exclusion are strongly encouraged to submit a comment form with the following information.

- full legal name of the organization making the comment, whether the commenter 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 2018

- efforts undertaken since September 2018 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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