USTR Releases First Round of Section 301 List 3 Product Exclusions

Posted on Aug 6

Update 08/06/2019:

The United States Trade Representative (USTR) Office has just released the first group of HTS subheadings that will be granted a partial exclusion from the China List 3 tariffs. In total, certain products within 10 HTS subheadings will be exempt from the current additional 25% tariffs that were initially applied in September 2018 at a rate of 10%. The additional tariff increased from 10% to 25% on May 10th, 2019.

These partial exclusions may be applied retroactively to September 24, 2018, and may be requested for up to one year after the official notice is posted in the Federal Register.

The list of HTS subheadings that have been granted partial exclusion from the List 3 25% tariffs are as follows:

3923.10.9000, 3923.50.0000, 3926.90.3000, 5402.20.3010, 5603.92.0090, 7323.99.9080, 8716.80.5090, 8716.90.5060, 8903.10.0060 and 8903.10.0060.

A copy of the Federal Register Notice which contains the specific product information can be found here.

For questions, please contact your V. Alexander account team.

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Update 06/21/2019:

Further to our earlier News Alert on May 29, the United States Trade Representative (USTR) published a notice on June 20 providing their plans to open an electronic portal which will be used for requesting exclusions for products contained in List 3.

Products granted an exclusion will be retroactively applied to September 24, 2018 when additional duties for Section 301 List 3 products were first imposed.

The June 20 Federal Register Notice can be found here.

The link to the electronic exclusion request portal can be found here.

Lastly, the USTR has a site designed to assist importers with understanding the additional China duties. It’s a handy tool and has helpful features that is beneficial to importers affected by these duties.

V. Alexander will continue to monitor this and provide updates when available. Should you have any questions, please contact your account team!

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05/29/2019

The USTR has requested emergency approval from the Office of Management and Budget (OMB) to gather information as part of the China 301 List 3 exclusion process, which is intended to benefit “interested U.S. parties” affected by the List 3 tariffs. Published in a Federal Register notice Tuesday 84 FR 23145 (found here), comments to the OMB are due June 7th, approval by OMB is expected by June 20th, and the target start for the exclusion application process is June 30th. OMB approval of the form and data gathering is expected. The information required for the application request are included in the Federal Register, and can serve as the basis for preparation of the exclusion requests by “interested U.S. parties”. The form itself will be finalized at a later date, but with this information you can begin preparing for an exclusion request if you decide to do so. Note that each request is for a particular product within an affected HTS provision.

Here are the pertinent dates to consider……

June 7 – Comments to OMB on the proposed data collection and form
June 20 – OMB confirmation of the proposed data collection
June 30 – Expected start of filings for exclusion process
December 20 – Expected end date for filing exclusion requests

Time frames:

14 days after filing – Comments by interested parties supporting or opposing exclusion request
7 days later – Rebuttal or other comments responding to supporting or opposing comments

V. Alexander will continue to monitor this situation and provide updates as they become available.

Please contact your account team with any questions.