Industry News

Section 301 Product Exclusions

Product Exclusions

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”

Steps on how to apply for these product exclusions are listed below.

The Lists

List 1

The exclusion process for List 1 closed for petitioners in October 2018.

However, any organization that imports using the following tariffs numbers, regardless if the organization was the actual exclusion petitioner or not, is able to use the general exclusions listed below.

Five announcements of products in List 1 have been announced and are listed below.

Each exclusion is retroactive to July 6, 2018.

 

section 301 product exclusions

First batch of Product Exclusions include:  

Batch 1 will remain in place until December 28, 2019.

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.

View Announcement
View Federal Register Notice

Second batch of Product Exclusions include:

Batch 2 will remain in place until March 25, 2020.

  • HTSUS Subheadings including:
    • 8412.21.0045
    • 8430.31.0040
    • 8607.21.1000
  • 30 specially prepared product descriptions covering such items as:
  • submersible pumps
  • breast pumps;
  • impellers and impeller housings
  • salad spinners
  • water filters for pools, aquariums, etc.
  • water purifiers
  • steel bucket elevators
  • rubber tracks used on construction equipment
  • automated data processing storage units
  • self-propelled pavers
  • check valves
  • electric motors
  • electrical transformers
  • soldering irons
  • liquid crystal display modules
  • musical tuners
View Announcement
View Federal Register Notice

The Third Batch of Product Exclusions include:

Batch 3 will remain in place until April 18, 2020.

  • pumps for countertop appliances for serving beer (HTSUS 8413.19.0000)
  • roller machines designed for cutting, etching, or embossing paper, foil, or fabric (HTSUS 8420.10.9080)
  • water oxidizers and chlorinators (HTSUS 8421.21.0000)
  • ratchet winches designed for use with textile fabric strapping (HTSUS 8425.39.0100)
  • continuous action elevators and conveyors designed to convey mineral materials (HTSUS 8428.33.0000)
  • counterweight castings of iron or steel designed for use on fork lift and other work trucks (HTSUS 8431.20.0000)
  • tines, carriages, and other goods handling apparatus and parts designed for use on fork lift and other works trucks (HTSUS 8431.20.0000)
  • parts of drill sharpening machines (HTSUS 8466.93.9885)
  • outer shells of hydraulic accumulators (HTSUS 8479.90.9496)
  • parts of mechanical awnings and shades (HTSUS 8479.90.9496)
  • certain parts of metal shredders (HTSUS 8479.90.9496)
  • steering wheels designed for watercraft (HTSUS 8479.90.9496)
  • pressure regulators of brass or bronze (HTSUS 8481.10.0090)
  • pipe brackets of aluminum designed for installation into air brake control valves (HTSUS 8481.90.9040)
  • push pins and C-poles of steel designed for use in variable force solenoid valves (HTSUS 8481.90.9040)
  • ball bearings of a width not exceeding 30 mm (HTSUS 8482.10.5032)
  • inductor baseplates of aluminum (HTSUS 8504.90.9690)
  • parts of soldering irons and soldering machines (HTSUS 8515.90.4000)
  • motor vehicle gear shift switch assemblies (HTSUS 8536.50.9065)
  • pressure switches designed for use in heat pumps and air-conditioning condensers (HTSUS 8536.50.9065)
  • instruments for measuring or checking voltage or electrical connections (HTSUS 9030.33.3800)
View Announcement
View Federal Register Notice

The Fourth Batch of Product Exclusions include:

Batch 4 will remain in place until May 14, 2020.

Pursuant to the product exclusion process, the U.S. Trade Representative has determined that the additional duties provided for in heading
9903.88.01 shall not apply to the following particular products, which are provided for in the enumerated statistical reporting numbers:

  • HTSUS Subheadings including:
    • 8407.21.0040
    • 8427.10.4000
    • 8473.40.1000
    • 8481.10.0090
    • 8483.50.9040
  • Apparatus, including pitchers, bottles, and units designed for incorporation into refrigerators, appliances or sink faucets (HTSUS 8421.21.0000)
  • Filtering apparatus, designed for use in pools, spas (HTSUS 8421.21.0000)
  • Filtering or purifying machinery used for waste water treatment (HTSUS 8421.21.0000)
  • Submersible machinery for filtering water, designed for use in pools, basins, aquariums, spas (HTSUS 8421.21.0000)
  • Water distillation machinery and apparatus not covered by heading 8419 (HTSUS 8421.21.0000)
  • Air purification equipment, electrically powered (HTSUS 8421.39.8015)
  • Dust collection equipment for cement, minerals and mining industries (HTSUS 8421.39.8015)
  • Apron-type chain conveyor (HTSUS 8428.39.0000)
  • Roller conveyors (HTSUS 8428.39.0000)
  • Vibrating conveyors (HTSUS 8428.39.0000)
  • Machinery for mixing beverages designed for use in commercial food service establishments (HTSUS 8438.80.0000)
  • Armatures designed for use in hydraulic solenoid valves (HTSUS 8481.90.9040)
  • C-poles, of steel, designed for use in hydraulic solenoid control valves (HTSUS 8481.90.9040)
  • Housings designed for hydraulic ball valves, of cast iron or steel (HTSUS 8481.90.9040)
  • Metering spools, of aluminum, designed for use in hydraulic solenoid control valves (HTSUS 8481.90.9040)
  • Metering spools, of steel, designed for use in hydraulic solenoid control valves (HTSUS 8481.90.9040)
  • Poles, of steel, designed for use in hydraulic solenoid control valves (HTSUS 8481.90.9040)
  • Push pins, of steel, designed for use in hydraulic solenoid control valves (HTSUS 8481.90.9040)
  • Retainers, of steel, designed for use in hydraulic solenoid control valves (HTSUS 8481.90.9040)
  • DC electric motors (HTSUS 8501.10.4060)
  • AC electric motors, multi-phase, of an output exceeding 14.92 kW (HTSUS 8501.52.8040)
  • Coils, coil assemblies and other parts of electromagnets (HTSUS 8505.90.7501)
  • Radio remote control apparatus for garage doors (HTSUS 8526.92.5000)
  • Radio remote control apparatus for pet collars and pet food dispensers (HTSUS 8526.92.5000)
  • Remote control devices, hand held and battery powered, designed for use with toy model vehicles and aircraft (HTSUS 8526.92.5000)
  • Bezels, covers and housings, the foregoing designed for motor vehicle cameras (HTSUS 8529.90.8100)
  • Electromechanical relays (HTSUS 8536.49.0075)
  • Push-button switches, rated at over 5 A, measuring no more than 2.9 cm by 2.9 cm by 2.9 cm, with 4 spade or brass terminals, with an actuator shaft with D-shaped cross section (HTSUS 8536.50.9035)
  • Push-button switches, rated at over 5 A, measuring no more than 4.8 cm by 2.8 cm by 2.8 cm, with 2 spade or brass terminals (HTSUS 8536.50.9035)
  • Push-button switches, rated at over 5 A, measuring no more than 5 cm by 1.7
    cm by 1.9 cm, with 2 spade or brass terminals, with an actuator shaft with D-shaped cross section (HTSUS 8536.50.9035)
  • Snap-action switches (HTSUS 8536.50.9040)
  • Stereoscopic microscopes (HTSUS 9011.10.8000)
  • Adapter rings, tubes and extension sleeves, stands and arm assemblies, stages and gliding tables, eyeguards and focusing racks (HTSUS 9011.90.0000)
  • Ultraviolet or infrared LED light therapy devices (HTSUS 9018.20.0040)
View Federal Register Notice

The Fifth Batch of Product Exclusions include:

Batch 5 will remain in place until June 4, 2020.

  •  HTSUS 8537.10.8000 (touch-sensitive data input devices (touch screens) without display capabilities)
  • parts of non-aircraft gas turbines (HTSUS 8411.99.9085)
  • oil well and oil field crank-balanced, long-stroke, and beam pumps (HTSUS 8413.50.0010)
  • radial piston hydraulic fluid pumps (HTSUS 8413.50.0070)
  • submersible pumps, centrifugal pumps, and sump pumps (HTSUS 8413.70.2004)
  • non-submersible centrifugal pumps (HTSUS 8413.70.2005)
  • centrifugal pumps designed for eliminating condensate (HTSUS 8413.70.2090)
  • water pump housings and impellers (HTSUS 8413.91.9010)
  • hydraulic pump positioning piston assemblies and plastic reservoirs for motor vehicle brake master cylinders (HTSUS 8413.91.9060)
  • air-end assemblies, inlet guide vanes, air-ends, compressor baseplates, and backplates (HTSUS 8414.90.4190)
  • stand-alone icemaking machines (HTSUS 8418.69.0110)
  • non-compressor coolers and assemblies of thermo-electric modules (HTSUS 8418.69.0180)
  • solar water heaters (HTSUS 8419.19.0040)
  • distillation and rectifying equipment (HTSUS 8419.40.0080)
  • heat exchanger plates, cores, finned tubes, cones, shells, bonnets, flanges, and baffles (HTSUS 8419.90.3000)
  • cast steel and steel structural forms designed for use in filtering machines (HTSUS 8421.99.0080)
  • steel and cast steel parts of air filtering machines or apparatus (HTSUS 8421.99.0080)
  • self-propelled forklift and platform trucks (HTSUS 8427.10.8090)
  • garage door opener/closers, hinged steel transfer machinery, rotating benches, and rotating fork machines (HTSUS 8428.90.0290)
  • vibratory, self-propelled tamping machines, each with drum roller (HTSUS 8429.40.0020)
  • new, track-mounted hydraulic backhoes or hydraulic shovels (HTSUS 8429.52.1010)
  • pile drivers, diesel powered (HTSUS 8430.10.0000)
  • conveyor belt parts (HTSUS 8431.39.0010)
  • feed pushers, bale forks, scrapers, and frames therefor (HTSUS 8431.49.9010)
  • rolling mills (HTSUS 8455.22.0000)
  • double row ball bearings (HTSUS 8482.10.5060)
  • needle roller bearings (HTSUS 8482.40.0000)
  • outer bearing rings (HTSUS 8482.99.0500)
  • bearing shields (HTSUS 8482.99.6595)
  • coupling covers, including center members, flanged hubs, sleeves, and shoes (HTSUS 8483.90.8010)
  • AC multi-phase motors fitted with pulleys and brakes to raise and lower passenger elevators (HTSUS 8501.53.8040)
  • speed drive controllers for electric motors (HTSUS 8504.40.4000)
  • printed circuit assemblies for telecommunication apparatus (HTSUS 8504.90.6500)
  • radio transceivers for installation in motor vehicles (HTSUS 8525.60.1050)
  • antennas of base metal and fiberglass (HTSUS 8529.10.4040)
  • projector parts (HTSUS 8529.90.9900)
  • electromechanical relays other than automotive flashers (HTSUS 8536.41.0050)
  • push-button switches (HTSUS 8536.50.9035)
  • push-pull switches (HTSUS 8536.50.9065)
  • bullet connectors, butt connectors, closed-end butt connectors, crimp connectors, insulated tab electrical connectors, tab receptacle electrical connectors, junction blocks, lug connectors, ring connectors, spade connectors, spring clip (alligator clip) terminals, terminal blocks, and wiretap connectors (HTSUS 8536.90.4000)
  • magnesium anodes (HTSUS 8543.30.9040)
  • disposable brain monitoring sensor patches, stainless steel subdermal needle electrodes, and surface electrodes (HTSUS 9018.19.9560)
  • machines for testing the hardness of metals (HTSUS 9024.10.0000)
View Federal Register Notice

List 2

The exclusion process for List 2 closed in December 2018, and there has not yet been an announcement for general exclusions from List 2.

List 3

On February 15, 2019, via the mini-omnibus bill, Congress directed an exclusion process for List 3 by March 17, but that deadline was not met.  In regards to List 3, USTR’s Robert Lighthizer stated that no exclusion process would be developed until tariffs increased to 25%. As of June 5, 2019, no official exclusion process has been announced even though the List 3 rate increased from 10% to 25% on May 10, 2019, however, the List 3 exclusion process is expected to begin around June 20, 2019.

According to a United States Trade Representative announcement, the requests for these exclusions will require much more information than was has been required for List 1 and List 2 goods, and each request will only be able to cover a single product.  According to Sandler, Travis and Rosenberg, “each request must include additional and more detailed information than has previously been required about the requestor (e.g., gross revenue), the nature of the product (e.g., whether imported as a final product or input), the value of imports from China and other countries, sourcing availability, cost of production of goods using Chinese-origin inputs, whether previous exclusion requests were submitted, etc., however, the form of the request is substantially similar to that used for Lists 1 and 2.”

We suggest importers begin their processes now.

List 4

We suggest that importers start prepping public comments now and submit them electronically when the link is available on www.regulations.gov.  Find out the steps on how to submit comments here. The full list of instructions can be found on Page 4 of the USTR Notice.

 

How to Apply for Product Exclusions

  • There is a process through the USTR & regulations.gov
  • Recommend outside counsel involvement

Step 1: Know your 8-digit HTS subheading

Step 2: Enter your subheading here: USTR Section 301 Search

Step 3: Submit a Comment or Exclusion request Based on your HTS Subheading

Step 4: Check on the Status (The Public has comment periods)

If the comment period or product exclusion request period is open for a tariff action, the due date will include a clickable hyperlink that will direct you to the relevant regulations.gov electronic docket where a comment or product exclusion request may be submitted and the docket # will be included.

 

Duty Savings 

If the Section 301 tariffs are affecting your company, please consider joining us in a free webinar on June 19, 2019 @ 1:30 pm CST.  Scarbrough’s President and COO, Adam Hill, along with Patrick Caulfield, an attorney at GDLSK, an international trade and customs law firm, will talk about legal opportunities to recover or avoid paying duty to CBP.  This is an interactive webinar set up as a question/answer forum.  Please submit your questions ahead of time or via live chat.  Can’t make it?  Register anyway and receive a recording.

Register Now

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 set up a FREE 20 minute consultation.

 

To review Section 301, visit this helpful Resource Page

To read more about Section 301, visit USTR.gov

Download each Section 301 List below: 


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

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