Last week, the Office of the United States Trade Representative (USTR) made the determination to reinstate 352 of 549 previously granted, extended, and recently expired product exclusions on goods from China that have been subject to Section 301 tariffs.
FEDERAL REGISTER NOTICE: Notice of Reinstatement of Certain Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
SECTION 301 EXCLUSION CRITERIA
In October 2021, the USTR requested public comments to help evaluate if and how many product exclusions should be reinstated. The following criteria was used based on the responses received from the public.
- Whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries.
- Any changes in the global supply chain since September 2018 with respect to the particular product or any other relevant industry developments.
- The efforts, if any, the importers or U.S. purchasers have undertaken since September 2018 to source the product from the United States or third countries.
- Domestic capacity for producing the product in the United States.
In summary, the USTR reinstated 64% of the product exclusions; 137 exclusions covered under List 1, 59 exclusions on List 2, 266 exclusions on List 3, and 87 exclusions on List 4.
The remaining 197 exclusions, some of which have been expired since 2020, will continue paying the additional 25% or 7.5% Section 301 tariff on specified goods from China.
IMPORTANT DATES
The reinstated product exclusions will apply retroactively, as of October 12, 2021, and extend through December 31, 2022. The 352 extended exclusions will be covered by the new subheading 9903.88.67.
Section 301 tariffs paid on goods that have been imported since Oct. 12, 2021, are eligible for a refund if the entries are either unliquidated or within the 180-day protest period after liquidation.
Impacted by Section 301? Contact Green’s Global Trade Experts for help with Section 301 refunds and filing at greenworldwide.com.
