Industry News

Section 301 List 2 Exclusions up for Extension

The United States Trade Representative is now considering a possible 12-month extension of exclusions for Section 301 List 2 Batch 1. The comments and exclusions will be considered on a case-by-case scenario. Keep in mind, USTR will be determining whether the product remains available only from China.

List 2 Batch 1 Details

  • Published July 31, 2019
  • Effective August 23, 2018
  • Valid until July 31, 2020
  • The exclusions are available for any product that meets the description in the Annex, regardless of whether the importer filed an exclusion request.
  • The exclusions are reflected in 69 specially prepared product descriptions, which cover 292 separate exclusion requests.

The public docket will be open for comments between May 1, 2020 to June 1, 2020.

Submit your Comments

The Federal Register Notice, indicates that commenters should address:

  • 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 August 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 August 2018 to source the product from the United States or third countries.
  • In addition, USTR 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.

What to Include in Comments:

  • Contact information, including the full legal name of the organization making the comment, whether the commenter is a third party (e.g., law firm, trade association, or customs broker) submitting on behalf of an organization or industry, and the name of the third party organization, if applicable.
  • The number for the exclusion on which you are commenting as provided in the Annex of the Federal Register notice granting the exclusion and the description. For descriptions amended or corrected by a later issued notice of product exclusions, parties should use the amended or corrected description.
  • Whether the product or products covered by the exclusion are subject to an antidumping or countervailing duty
  • Whether you support or oppose extending the exclusion and an explanation of your rationale. Commenters must provide a public version of their rationale, even if the commenter also intends to submit a more detailed business confidential rationale.
  • Whether the products covered by the exclusion or comparable products are available from sources in the U.S. or in third countries. Please include information concerning any changes in the global supply chain since July 2018 with respect to the particular product.
  • The efforts you have undertaken since July 2018 to source the product from the United States or third countries.
  • The value and quantity of the Chinese-origin product covered by the specific exclusion request purchased in 2018 and 2019. Whether these purchases are from a related company, and if so, the name of and relationship to the related company.
  • Whether Chinese suppliers have lowered their prices for products covered by the exclusion following the imposition of duties.
  • The value and quantity of the product covered by the exclusion purchased from domestic and third country sources in 2018 and 2019.
  • If applicable, the commenter’s gross revenue for 2018 and 2019.
  • Whether the Chinese-origin product of concern is sold as a final product or as an input.
  • Whether the imposition of duties on the products covered by the exclusion will result in severe economic harm to the commenter or other U.S. interests.
  • Any additional information in support of or in opposition to extending the exclusion. Commenters also may provide anyother information or data that they consider relevant.
Public Docket: Submit Comments

List 2 Batch 1 Product Exclusions Include:

Hint:  Press Ctrl + F and type in your HTS number
  • chlorinated polyethylene elastomer (HTSUS 3901.90.1000)
  • polytetrafluoroethylene (HTSUS 3904.61.0090)
  • expandable plastic beads consisting of copolymers of methylmethacrylate and styrene (HTSUS 3906.90.2000)
  • polyol blends containing 92 percent or more by weight of polyether polyol and 2.5 percent or more by weight of N,N-dimethylcyclohexamine (HTSUS 3907.20.0000)
  • hot melt flat shapes of biaxially-oriented polypropylene film with an acrylic emulsion (HTSUS 3919.90.5060)
  • polyethylene film coated on one side with solvent acrylic adhesive, clear or in transparent colors, whether or not printed, in rolls (HTSUS 3919.90.5060)
  • polyvinyl chloride film, coated on one side with pressure sensitive solvent-acrylic adhesive that allows for easy removal from a flat glass or flat, rigid, clear plastic surface (HTSUS 3919.90.5060)
  • printed rectangular polyethylene sheets depicting images on one side, with self-adhesive edges protected with peel-off liners on the other side (HTSUS 3919.90.5060)
  • self-adhesive colored or printed polyvinyl chloride film with a peelable liner, in rolls, of a kind used for lining shelves or drawers (HTSUS 3919.90.5060)
  • printed, non-permeable plastic film of ethylene designed for use in packaging personal care products such as baby wipes, adult wipes, and similar wet stack products (HTSUS 3920.10.0000)
  • polyethylene film of a kind used for wrapping perishable foods, with a starter edge tab, put up in retail packages incorporating a built-in slide cutter and grip strip for holding the film in place until subsequent use (HTSUS 3920.10.0000)
  • rectangular sheets of high-density or low-density polyethylene, with a sticker attached to mark the center of each sheet, of a kind used in hospital or surgery center operating rooms (HTSUS 3920.10.0000)
  • spark-ignition rotary or reciprocating internal combustion piston engines to be installed in agricultural or horticultural machinery or equipment (HTSUS 8407.90.1020)
  • gasoline or liquid propane engines having a displacement of more than 2 but not more than 2.5 liters (HTSUS 8407.90.9010)
  • spark-ignition internal combustion piston engines with an engine displacement of not more than 430 cc (HTSUS 8407.90.9040)
  • heat guns, heated tissue preparation microscope slide flattening tables, and tissue sample paraffin floatation baths (HTSUS 8419.89.9585)
  • air amplifiers powered solely by an external source of compressed air (HTSUS 8424.89.9000)
  • apparatus capable of generating and projecting liquid particles of a size that simulates haze, fog, or snow (HTSUS 8424.89.9000)
  • apparatus capable of mechanically generating and projecting bubbles from a liquid source (HTSUS 8424.89.9000)
  • aroma-spraying sets that include a battery-powered aerosol apparatus and a glass bottle containing essential oil solution (HTSUS 8424.89.9000)
  • collars of a size suitable for dogs or cats that are fitted with a means to provide a stimulus by means of a sprayer (HTSUS 8424.89.9000)
  • dispensers of hand-cleaning or hand-sanitizing solutions, whether employing a manual pump or a proximity-detecting battery-operated pump (HTSUS 8424.89.9000)
  • oral irrigators (dental water-jet machines) (HTSUS 8424.89.9000)
  • parts washers consisting of a steel basin, steel drain plug, support legs and shelf, etc. (HTSUS 8424.89.9000)
  • rotary surface washers with one or more rotating brushes (HTSUS 8424.89.9000)
  • wet- and dry-diffusion apparatus fitted for incorporation into scent-releasing machines (HTSUS 8424.89.9000)
  • walk-behind rotary tillers, electric powered (HTSUS 8432.29.0060)
  • fertilizer distributors (HTSUS 8432.42.0000)
  • benchtop drill presses (HTSUS 8465.95.0055)
  • bearing housings (HTSUS 8483.30.8020)
  • AC motors with attached actuators, crankshafts, or gears (HTSUS 8501.10.6020)
  • C-frame 2-pole AC electric motors (HTSUS 8501.10.6020)
  • electric motors (HTSUS 8501.10.6080)
  • amorphous silicon solar chargers (HTSUS 8501.31.8010)
  • electric motors (HTSUS 8501.52.4000)
  • armature shafts for electric motors of heading 8501 (HTSUS 8503.00.9520)
  • windshield wiper motor covers and shafts (HTSUS 8503.00.9520)
  • leakage current detection and interruption cords (HTSUS 8536.30.8000)
  • control boards for stoves, ranges, and ovens (HTSUS 8537.10.3000)
  • Zener diodes (HTSUS 8541.10.0050)
  • position or speed sensors for motor vehicle transmission systems (HTSUS 8543.70.4500)
  • wheel speed sensors for anti-lock motor vehicle braking systems (HTSUS 8543.70.4500)
  • antenna amplifiers and antenna noise suppressors (HTSUS 8543.70.9960)
  • apparatus using passive infrared detection sensors designed for turning lights on and off (HTSUS 8543.70.9960)
  • audio controllers and audio mixers (HTSUS 8543.70.9960)
  • devices incorporating sensors and monitors for identifying encoded television and radio signal information of survey participants (HTSUS 8543.70.9960)
  • electrically powered cat noise control devices; pet combs; dog training, controlling, repelling, or locating apparatus; and insect control apparatus (HTSUS 8543.70.9960)
  • electrically powered static-emitting plastic strips designed for use in training or controlling pets (HTSUS 8543.70.9960)
  • LED lamps for flash curing nail polish (HTSUS 8543.70.9960)
  • liquid leak detectors (HTSUS 8543.70.9960)
  • multiple device remote controls (HTSUS 8543.70.9960)
  • programmable robots incorporating an LCD display, camera, and microphone (HTSUS 8543.70.9960)
  • couplers, knuckles, and yokes and parts thereof for vehicles of heading 8605 or 8606 (HTSUS 8607.30.1000)
  • motorcycles with reciprocating internal combustion piston engine of a cylinder capacity not exceeding 50 cc (HTSUS 8711.10.0000)
  • polarizing film, of triacetate, with a pressure sensitive adhesive backing (HTSUS 9001.20.0000)
  • digital clinical thermometers (HTSUS 9025.19.8040)
  • cooking thermometers, including candy and deep-fry thermometers, and infrared thermometers (HTSUS 9025.19.8080)
  • combined thermometer and hygrometer devices (HTSUS 9025.80.1000)
  • pulse output gas meters of a kind that can be read remotely (HTSUS 9028.10.0000)
  • pulse output water meters of cast stainless steel (HTSUS 9028.20.0000)
  • fingertip pulse oximeters (HTSUS 9029.20.4080)

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.

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.

About Scarbrough

The Scarbrough Group of Companies, headquartered in Kansas City with local presence in every major port in the world, is a complete international and domestic supply chain service provider, offering U.S., Mexican, and Canadian Customs brokerage, Import & Export Transportation Solutions, Domestic brokerage and asset-based trucking, Warehouse fulfillment and distribution services, Trade Compliance Consulting, Large Equipment and Project Cargo moves, as well as Parcel Audit Savings.  Scarbrough is widely known for its trade experts, training, personalized customer service, and customized solutions.  Since 1984, Scarbrough has continued to satisfy its clients by following its motto on a daily basis: “It is our job to make your job easier.”  Moreover, our team of experts is available at your disposal.  We offer free consultations on any topic from supply chain optimization and duty savings opportunities to the basics, helping to guide new importers and exporters as they jump into the world of global trade.  Contact us now.

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