Industry News

Exclusion Process for Section 301 List 3 Tariffs

Section 301 List 3 Exclusions Commence

As any importer affected by the current Section 301 situation should know, List 3 of the Section 301 tariffs are already in place at 10% additional duty.  An increase to 25% duty is set to take place on March 2, 2019 unless China and United States trade talks lead us in a different direction.  Until then, the mini-omnibus bill that was signed on February 15, 2019 states that the product exclusion process for the third tranche of Section 301 should be created by March 17, 2019.  Product exclusions were not allowed until just now on this third tranche because of the lower duty rate of 10 percent.  The USTR has to report to the congressional appropriations committees, the House Ways and Means Committee and the Senate Finance Committee by March 17, 2019.

Update, and information derived from Sandler, Travis and Rosenberg, “On February 15th, 2019, Congress directed an exclusion process for List 3 products. USTR was to report to Congress on the nature and timing of the exclusion process no later than March 17, 2019 but did not meet the deadline. USTR’s Robert Lighthizer has continued to assert that no exclusion process will be developed until tariffs are increased to 25 percent.”

 

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.

Consulting Request

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