China Tariff Exclusions Delayed Further

The Biden administration has recently taken action indicating that future exclusions from the Section 301 tariffs on imports from China will be delayed even further than originally anticipated.

The Office of the U.S. Trade Representative previously issued a notice seeking comments on (1) whether hundreds of specified subheadings under Chapters 84 and 85 of the HTSUS (covering certain machinery used in domestic manufacturing) should be eligible for temporary exclusion from the section 301 tariffs and (2) whether products classified in Chapters 84 and 85 that are not on USTR’s list should be eligible for exclusions as well.

USTR then issued a separate notice setting forth the information it planned to require from those requesting tariff exclusions for goods deemed eligible. That information includes 10-digit HTSUS numbers, detailed product descriptions, and product availability in the U.S. and third countries.

USTR has now issued a follow-up to the latter notice setting forth additional proposed information requirements for exclusion requests, including SKU or product number and manufacturer of the product.

It should be noted that this notice still does not include any indication that USTR plans to apply any granted exclusions retroactively during the two years USTR conducted its investigation of the impact of the Section 301 tariffs on imports from China. Companies that have imported goods under the covered Chapter 84 and 85 subheadings since March 2022 and paid Section 301 tariffs on those goods should therefore contact ST&R to get involved with efforts to change this by submitting comments to USTR (by Aug. 30) and the Office of Management and Budget (by Sept. 16) and soliciting help from Congress.

Once this information collection is approved, which could take several months, USTR will issue a notice opening a new portal through which companies can request exclusions for eligible goods. There will be an opportunity for objections to submitted requests as well as rebuttals to any objections.

ST&R has helped numerous companies secure exclusions from the China Section 301 tariffs in recent years. For more information on how we can help your business, please contact your ST&R professional or via this email.