Congress has directed the creation of a long-awaited process for requesting product-specific exclusions from the Section 301 additional tariffs on $200 billion worth of imported goods from China. These tariffs are currently 10 percent but are scheduled to be increased to 25 percent as of March 2.
In an explanatory statement accompanying appropriations legislation signed into law Feb. 15, Congress directed the Office of the U.S. Trade Representative to establish an exclusion process for the so-called List 3 goods “following the same procedures as those in rounds 1 and 2.” USTR must report to Congress on the nature and timing of this process no later than March 17.
Companies affected by the additional tariff on List 3 goods should take the following steps in light of this development.
- Prepare now to submit petitions seeking an exclusion. As with exclusions for List 1 and List 2 goods, it is anticipated that USTR will require the submission of a form on which importers will need to demonstrate that there is no production of the product in the U.S., there is no alternative producer outside of China, and/or the product is important to national security.
- If desired, act now to push for the inclusion of a process for appealing exclusion denials. There is currently no such process for List 1 and List 2 goods, but USTR must consult with Congress in developing the List 3 exclusion process.
For more information on the Section 301 tariffs, please see our Tariff Action Resources Page.
For more information about the Section 301 tariff exclusion process, assistance filing exclusion requests, and information on ways to mitigate the impact of these tariffs, please contact Nicole Bivens Collinson at (202) 730-4956 or Kristen Smith at (202) 730-4965.
Copyright © 2023 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.