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Prepare Now to Submit Tariff Exclusion Requests for China List 3 Goods

Tuesday, May 21, 2019
Sandler, Travis & Rosenberg Trade Report

Requests for exclusions from the 25 percent additional tariff imposed May 10 on $200 billion worth of goods (List 3 goods) imported from China will require much more information than has been required for List 1 and List 2 goods, according to a notice from the Office of the U.S. Trade Representative. Importers of List 3 goods interested in requesting exclusions should act now to start assembling this information, as the request process could get underway soon.

Following a breakdown in negotiations on a trade agreement with China, the Trump administration increased the Section 301 additional tariff on List 3 goods from 10 percent to 25 percent for goods that are both (a) entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EST on May 10 and (b) exported to the U.S. on or after May 10. List 3 goods exported before May 10 will remain subject to the ten percent tariff if they are entered on or after May 10 and before June 1.

USTR has announced plans to initiate a process for requesting exclusions from the 25 percent additional tariff on List 3 goods. While no formal notice of that process has yet been published, a separate USTR notice requesting approval of the forms that will have to be used to submit and respond to such requests contains the following information. Comments on these forms are due by June 7.

- the List 3 exclusion request process is expected to begin around June 30

- each request will only be able to cover a single product

- each request must include additional and more detailed information than has previously been required about the requestor (e.g., gross revenue), the nature of the product (e.g., whether imported as a final product or input), the value of imports from China and other countries, sourcing availability, cost of production of goods using Chinese-origin inputs, whether previous exclusion requests were submitted, etc.

- the form of the request is substantially similar to that used for Lists 1 and 2

- responses opposing or supporting a request will be due within 14 days of the date the request is posted, after which interested persons will have seven days to submit a rebuttal

USTR anticipates receiving 60,000 List 3 exclusion requests, but trade law firm Sandler Travis & Rosenberg, P.A. has substantial experience helping companies get specific tariff numbers and products removed from Section 301 tariffs. For more information, please contact Mark Tallo at (202) 730-4968 or Nicole Bivens Collinson at (202) 730-4956.

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