List 3 Product Exclusions
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 May 10, 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.
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.