China has announced that beginning June 3 it will accept in stages requests for exclusions from the retaliatory tariffs it has imposed against more than $100 billion worth of goods imported from the U.S. Requests must contain specific information, and exclusions will only be granted to Chinese companies and for one year.
As of June 1 China is increasing tariffs on $60 billion worth of U.S. goods to as much as 25 percent after the Trump administration raised its Section 301 additional tariffs on $200 billion worth of Chinese goods on May 10. China already had retaliatory tariffs in place on another $50 billion of U.S. goods in response to the initial Section 301 tariffs the U.S. levied in 2018. (Click here for full details of these and other tariff actions taken by the U.S. and China.)
China has now formalized a process under which Chinese companies who import, produce, or use any goods subject to these retaliatory tariffs, or their industry associations, may request an exclusion from the tariff for those products.
For products on List 1 ($34 billion) or List 2 ($16 billion), requests may be submitted between June 3 and July 5. For products on any of the four additional lists ($60 billion), requests may be submitted between Sept. 2 and Oct. 18. Requests may be submitted on the website of the Ministry of Finance’s Customs Policy Research Center.
Each request will be limited to one product at the eight-digit tariff level; multiple exclusion requests will need to be filed on multiple applications. Requests should indicate, as applicable, the difficulty of obtaining the product outside the U.S., the economic hardship the tariff imposes on the requestor, and any detrimental impact from the tariff on relevant industries. Each request must include specific information about the product and the requestor.
Any exclusions will remain in effect for one year from the date they are granted.
For more information on China’s retaliatory tariffs and how to utilize this exclusion request process, please contact trade attorney Sally Peng at +852 9535 6034, customs and trade consultant Harry Zhang at +86 138 2626 5357, or trade consultant Nicole Bivens Collinson at (202) 730-4956.