Industry News

Section 301 List 1 Product Exclusions

Some Exclusions Announced for Section 301 List 1

It was announced that U.S. Customs and Border Protection has allowed exclusions to some Section 301 “List 1” tariffs. Any organization that imports using these tariff numbers, regardless if the organization was the actual exclusion petitioner or not, is able to use the exclusion.   Seven of the exclusions apply to any product classified under one of those seven numbers.

The seven numbers include:

  1. 8412.21.0075
  2. 8418.69.0120
  3. 8480.71.8045
  4. 8482.10.5044
  5. 8482.10.5048
  6. 8482.10.5052
  7. 8525.60.1010

Furthermore, there are 15 other exclusions that can only be used if the commodity specifically matches the exclusion description noted in the Annex.  For example, if a specific HTS number is listed and the actual product does not match exactly what is stated in the Annex description, then it does not qualify for the exclusion.  Click here to view announcement and Annex.

The approval of the exclusions were announced during the government shutdown but could not be implemented until the programming in ACE was updated.  It is now available to move forward with the electronic exclusions as stated below.

According to Sandler, Travis and Rosenberg, “As of Feb. 10 U.S. Customs and Border Protection is accepting in the Automated Commercial Environment entries of products that have been excluded from the Section 301 additional tariffs on imports from China. The exclusions granted thus far, which apply only to so-called List 1 goods subject to a 25 percent additional tariff, are retroactive to July 6, 2018, and will be effective until Dec. 28, 2019″…”Refunds of Section 301 tariffs paid on imports of excluded products on or after July 6, 2018, will not be automatic. Instead, importers can request such refunds by filing post-summary corrections following the instructions set forth above. If the entry has already liquidated, importers may protest the liquidation.”

Product Exclusions Assistance

Please email consulting@scarbrough-intl.com for a free 30-minute consultation or help with your product exclusions.

To request exclusions direct to CBP, click here:


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.

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

 

 

 

 

 

Consulting

Scarbrough is offering a FREE 20-minute consultation to any importer affected by the Section 301 Tariffs. Email consulting@scarbrough-intl.com or fill out the form below.

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