Section 301 List 4 Exclusion Process is now Open
The United States Trade Representative announced that on October 31, 2019 it will begin accepting tariff exclusion requests for imports from China subject to the additional 15% duty rate, also known as Section 301 List 4. List 4a went into effect on September 1, 2019 and List 4b is scheduled for December 15, 2019, both currently at a 15% ad valorem duty rate. To read the full Federal Register Announcement, click here.
Starting October 31, 2019 at noon EDT, the web portal for submitting exclusion requests will open. First an importer must register and can then apply for an exclusion online at https://exclusions.USTR.gov.
The exclusion process will close on January 31, 2020 @ 11:59 pm EDT.
Responses to individual exclusion requests are due 14 days after USTR posts the request on the online portal. Any replies to responses to an exclusion request are due the later of 7 days after the close of the 14-day response period, or 7 days after the posting of a response.
Who qualifies for Product Exclusions?
- How is your product different?
- What distinguishes your product from the 8-digit HTS subheading?
In making its determination on each request, USTR may consider:
- whether a product is available from a source outside of China,
- whether the additional duties would cause severe economic harm to the requestor or other U.S. interests, and
- whether the particular product is strategically important or related to Chinese industrial programs including “Made in China 2025”
For questions about the product exclusion process, contact Assistant General Counsels Philip Butler or Megan Grimball at (202) 395–5725. For questions on customs classification or implementation of additional duties, contact email@example.com.
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 firstname.lastname@example.org or fill out the form below. Our Global Trade Experts and Licensed Customs brokers are here to help.
Scarbrough is offering a FREE 30-minute consultation to any importer affected by the Section 301 Tariffs. Email email@example.com or fill out the form below.
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.
To review Section 301, visit this helpful Resource Page
To read more about Section 301, visit USTR.gov
Download each Section 301 List below: