The U.S. Trade Representative is considering the possible reinstatement of previously extended exclusions granted under Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation by excluding certain products from the additional duties implemented throughout multiple tranches.
Section 301 penalties on specific imports from China began in 2018 and have severely impacted supply chain costs of certain products. To assist, the USTR granted multiple rounds of exclusions for applicable products, and subsequently extended 549 exclusions. Most Section 301 product exclusion extensions expired on December 31, 2020, and earlier this year.
Now, the Office of the U.S. Trade Representative is requesting comments on whether to reinstate specific product exclusions.
REQUEST FOR COMMENTS DATES: October 12, 2021, through December 1, 2021
Exclusions reinstated pursuant to this review would be retroactive from October 12, 2021, not their original expiration and will be evaluated by the USTR on a case-by- case basis. The focus of the evaluation will be whether, despite the imposition of additional duties beginning in September 2018, the particular product remains available only from China.
Commentors must provide the following information:
- Contact information, including the full legal name of the organization making the comment, and whether the commenter is a third party.
- The previously extended exclusion you are commenting on.
- Whether the product or products covered by the exclusion are subject to an antidumping or countervailing duty order issued by the U.S. Department of Commerce.
- Whether you support or oppose reinstating the exclusion and an explanation of your rationale.
- Whether the commenter meets the size standard for a small business, as established by the Small Business Administration.
- The number of employees your business employs in the United States.
- Whether the products covered by the exclusion or comparable products are available from sources in the U.S. or in third countries.
- The efforts you have undertaken since September 2018 to source the product from the U.S. or third countries.
- As a domestic producer, your capacity to produce the product in the United States, your production in the United States, your efforts to produce domestically, and any constraints.
- The value and quantity of the Chinese-origin product covered by the specific exclusion request purchased over the last three years.
- Whether Chinese suppliers have lowered their prices for products covered by the exclusion following the imposition of duties.
- The value and quantity of the product covered by the exclusion purchased from domestic and third country sources over the last three years.
- If applicable, the commenter’s gross revenues for the last three years.
- Whether the Chinese-origin product of concern is sold as a final product or as an input.
- Whether or not reinstating the exclusion will result in severe economic harm to the commenter or other U.S. interests.
- Whether the additional tariffs had an impact on employment at your company.
- Any additional information in support of or in opposition to reinstating the exclusion. Commenters also may provide any other information or data that they consider relevant.
To comment, visit the resources below from the U.S. Trade Representative website:
USTR: Reinstatement of Certain Exclusions Previously Extended
Request for Comments Concerning the Reinstatement of Particular Exclusions
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