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Practice Areas

Remaining China List 3 Tariff Exclusions Being Considered for Extension

Tuesday, June 02, 2020
Sandler, Travis & Rosenberg Trade Report

An extension for up to 12 months of three additional sets of exclusions 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 from June 8 through July 7.

For more information on Section 301 tariffs, including exclusions and extensions, please contact Nicole Bivens Collinson, Marilyn-Joy Cerny, or 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 14 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.

USTR previously announced its consideration of an extension of 11 sets of exclusions (with comments due by June 8) and is now considering an extension of the remaining three sets, which were announced April 24, May 8, and May 28. USTR will evaluate each potential extension on a case-by-case basis based on whether the product at issue remains available only from China.

Those requesting an extension of an exclusion should 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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