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Additional China Tariff Exclusions May be Extended

Monday, December 30, 2019
Sandler, Travis & Rosenberg Trade Report

An extension for up to 12 months of the second set of exclusions from the Section 301 additional tariff imposed on List 1 goods from China is under consideration by the Office of the U.S. Trade Representative. Comments may be submitted between Jan. 15 and Feb. 15.

List 1 comprises 818 eight-digit HTSUS numbers that have been subject to an additional 25 percent tariff since July 6, 2018. The second set of exclusions from this tariff for List 1 goods was issued in March 2019 and is set to expire March 25, 2020. USTR is now considering a possible 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. USTR states that while commenters may provide any information or data they consider relevant, they are strongly encouraged to complete Form A, which includes 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 the primary point of contact

- publication date of the Federal Register notice containing the relevant exclusion

- full article description and 10-digit HTSUS code for the excluded product

- 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 July 2018 (or any other relevant industry developments)

In addition, importers and/or purchasers of excluded products should complete Form B, which requests the following information that will be treated as business confidential.

- the value and quantity of the excluded product purchased in 2018, the first half of 2018, and the first half of 2019 and whether these purchases are from a related company

- 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, the first half of 2018, and the first half of 2019

- any efforts undertaken since July 2018 to source the excluded product from the U.S. or third countries

- the commenter’s gross revenue for 2018, the first half of 2018, and the first half of 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

For more information on Section 301 tariffs, including exclusions, please contact trade consultant Nicole Bivens Collinson at (202) 730-4956 or trade attorney Kristen Smith at (202) 730-4965.

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