In early 2018, the United States Trade Representative (USTR), at the direction of the President, began rolling out several rounds of Section 301 tariffs targeting products manufactured in China. These additional tariffs were published in four lists and range from 7.5% to 25%.

Importers, bearing the brunt of tariff penalties, were provided with some recourse from the additional costs of Section 301 tariffs and allowed to request exclusions.  So far, USTR has granted hundreds of exclusions for many products from China that have resulted in millions in retroactive refunds for shippers.

Uniquely, exclusions are not company-specific – this means that any company can take advantage of an approved exclusion.

While a few of these exclusions are based solely on the Harmonized Tariff Schedule (HTS) code, most of them are product-specific. This means the item must perfectly match the product description provided in the scope of the exclusion and not just the HTS code alone. 

For example, the tariff code for wooden framed, upholstered household seats can be found on the exclusion list, however, only seats that exactly match the specific description below actually qualify:

“Upholstered seats with wooden frames other than chairs, not of cane, osier, bamboo or similar materials, each measuring at least 144 cm but no more than 214 cm in width, at least 81 cm but no more than 89 cm in height and at least 81 cm but not more than 163 cm in depth.“

To see if your products qualify for a Section 301 exclusion and retroactive refund, the following information must be provided:

  • Harmonized Tariff Schedule (HTS) code
  • Detailed product description
  • Technical data sheets, photos, marketing materials, etc.

In many cases, post summary corrections (PSCs) or protests can be filed for previous entries that have active matching exclusions.

Exclusions are continuously being updated, so it’s important to keep checking on product exclusions and expirations on the USTR website.

Green Worldwide Shipping has Global Trade Solutions Experts to help determine if your product qualifies for a retroactive refund. We can assist in reviewing your product information to help you make a determination of whether a product may be excluded from Section 301 tariffs.

Reach out to Green Worldwide Shipping today to see if your products qualify!

IMPORTERS & EXPORTERS NEED A RELIABLE COMPLIANCE PARTNER TO GUIDE THEM THROUGH THIS REGULATORY MAZE

meet kate rayer

Global Trade Manager, LCHB
Green Worldwide Shipping, LLC