Third Batch of Product Exclusions for Section 301 List 1 Announced
A third batch of product exclusions has been announced from the Section 301 List 1 imports from China. This comes after an effective date of July 6, 2018, when the United States Trade Representative imposed additional 25% duties on goods from China classified in 818 8-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), with an approximate annual trade value of $34 billion, which is also known as the Section 301 “List 1” tariffs. Moreover, some exclusions for Section 301 “List 1” products were announced in early February 2019 and a second batch of exclusions were announced in March 2019. These exclusions will be retroactive to July 6, 2018 and will remain in place until April 18, 2020.
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 exclusion.
As set out in the Annex to the USTR notice, the exclusions are reflected in 21 specially prepared product descriptions, which cover 348 separate exclusion requests.
The Third Batch of Product Exclusions include:
- 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 works 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)
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 email@example.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.
To review Section 301, visit this helpful Resource Page
To read more about Section 301, visit USTR.gov
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Scarbrough is offering a FREE 20-minute consultation to any importer affected by the Section 301 Tariffs. Email firstname.lastname@example.org or fill out the form below.