List 3 Product Exclusions
Update: First set of exclusions announced. View announcement here.
On February 15, 2019, via the mini-omnibus bill, Congress directed an exclusion process for List 3 by March 17, but that deadline was not met. In regards to List 3, USTR’s Robert Lighthizer stated that no exclusion process would be developed until tariffs increased to 25%. As of June 5, 2019, no official exclusion process has been announced even though the List 3 rate increased from 10% to 25% on May 10, 2019, however, the List 3 exclusion process is expected to begin around June 20, 2019.
According to a United States Trade Representative announcement, the requests for these exclusions will require much more information than was has been required for List 1 and List 2 goods, and each request will only be able to cover a single product. According to Sandler, Travis and Rosenberg, “each request must include additional and more detailed information than has previously been required about the requestor (e.g., gross revenue), the nature of the product (e.g., whether imported as a final product or input), the value of imports from China and other countries, sourcing availability, cost of production of goods using Chinese-origin inputs, whether previous exclusion requests were submitted, etc., however, the form of the request is substantially similar to that used for Lists 1 and 2.”
We suggest importers begin their processes now.
Recap of List 3
- effective September 24, 2018
- originally placed an additional 10%
- and increased to 25% on June 15, 2019
- on $200 billion worth of goods from China
How to Apply for Product Exclusions
- There is a process through the USTR & regulations.gov
- Recommend outside counsel involvement
Step 1: Know your 8-digit HTS subheading
Step 2: Enter your subheading here: USTR Section 301 Search
Step 3: Submit a Comment or Exclusion request Based on your HTS Subheading
Step 4: Check on the Status (The Public has comment periods)
If the comment period or product exclusion request period is open for a tariff action, the due date will include a clickable hyperlink that will direct you to the relevant regulations.gov electronic docket where a comment or product exclusion request may be submitted and the docket # will be included.
On August 18, 2017, USTR initiated an investigation into certain acts, policies and practices of the Government of China related to technology transfer, intellectual property and innovation (82 FR 40213). During the investigation, the Trade Representative determined that the acts, policies and practices of China under investigation are unreasonable or discriminatory and burden or restrict U.S. commerce, and are thus actionable under Section 301(b) of the Trade Act of 1974, as amended (Trade Act).
In response, President Trump initiated a number of actions which imposed ad valorem tariffs on certain imports originating in China. Four separate lists have been announced. To view the most up to date information, check out our debriefing on Section 301 Imports from China. This post indicates effective dates, duty rates, and more.
What to do
Scarbrough Consulting, Inc. is offering a free 30-minute consultation to any company that may be affected by the Section 301 announcements. Please send an email to email@example.com or fill out the form below. Our Global Trade Experts and Licensed Customs brokers are here to help.
Other ways to Learn More about Duty Savings
If the Section 301 tariffs are affecting your company, watch this webinar recording to learn more. Scarbrough’s President and COO, Adam Hill, along with Patrick Caulfield, an attorney at GDLSK, an international trade and customs law firm, talk about legal opportunities to recover or avoid paying duty to CBP. This is an interactive webinar set up as a question/answer forum.
To review Section 301, visit this helpful Resource Page
To read more about Section 301, visit USTR.gov
Download each Section 301 List below:
Scarbrough is offering a FREE 20-minute consultation to any importer affected by the Section 301 Tariffs. Email firstname.lastname@example.org or fill out the form below.