Import

Section 301 List 1 Batch 1 Product Exclusions Expire Dec 28

Section 301 List 1 Batch 1 Product Exclusions Expire Dec 28

USTR Considering Extending December 28 List 1 Exclusions

Section 301 Product Exclusions

11/4/2019

The first set of product exclusions for Section 301 List 1 imports from China are about to expire on December 28, 2019. (Exclusion tariff number is 9903.88.05)  However, the United States Trade Representative announced it will consider extending the exclusions for another 12 months.  On November 1, 2019, the USTR began the process for this with public comments and will not consider comments concerning possible extensions of exclusions granted under any other product exclusion notice.  The period for submitting comments will run from November 1, 2019 to November 30, 2019.

Who Should Consider

The USTR notice states it “will evaluate the possible extension of each exclusion on a case-by-case basis. The focus of the evaluation will be whether, despite the first imposition of these additional duties in July 2018, the particular product remains available only from China. In addressing this factor, commenters should address specifically:

  • 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 July 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 July 2018 to source the product from the United States or third countries.”

Additionally, USTR says they “will continue to consider whether the imposition of additional duties on the products covered by the exclusion will result in severe economic harm to the commenter or other U.S. interests.”

Public Comments

USTR strongly encourages commenters to complete Form A or B, and submit them through http://www.regulations.gov or emailed to 301bciextensions@ustr.eop.gov.  The docket number is USTR-2019-0019. USTR will post completed Form A’s on the public docket.  Obtain more details in the actual USTR notice here.

Submit Your Comments
The docket number is USTR-2019-0019

Visit USTR Exclusion Process


Background

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 consulting@scarbrough-intl.com or fill out the form below.  Our Global Trade Experts and Licensed Customs brokers are here to help.

Consulting

Scarbrough is offering a FREE 30-minute consultation to any importer affected by the Section 301 Tariffs. Email consulting@scarbrough-intl.com or fill out the form below.

Consulting Request

Enter your information below and our team will be in touch with you via email. Thanks!

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.


Resources

To review Section 301, visit this helpful Resource Page

To read more about Section 301, visit USTR.gov

Download each Section 301 List below:

View List 4a Effective Sept 1  View List 4b Effective Dec 15


Section 301 List 1
Section 301 List 2 Section 301 List 3

 

 

 

 

 

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