China Section 301 Tariffs Updates
In 2018, the U.S. imposed three rounds of tariffs on more than $250 billion worth of Chinese goods after its Section 301 investigation determined that China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation were unreasonable and discriminatory. The duties of up to 25% cover a wide range of products, from handbags to railway equipment.
On August 1, 2019, President Trump announced he will impose an additional 10% duty on the $300 billion, List 4 goods beginning September 1, 2019.
On August 13, 2019 the USTR delayed some of the additional tariffs on the proposed List 4 until December 15, 2019, List 4B, and removed some items from the list. However, many items will remain subject to the additional duties on September 1, List 4A.
Summary of Section 301 Tariffs
| List No. | Covered Products | Additional Tariff Rate | Effective Date |
| List 1 | $34 Billion
818 HTSUS Subheadings |
25% Increased to 30% |
July 6, 2018
October 15, 2019 (postponed from Oct. 1) |
| List 2 | $16 Billion
284 HTSUS Subheadings |
25% Increased to 30% |
August 23, 2018
October 15, 2019 (postponed from Oct. 1) |
| List 3 | $200 Billion
5,745 HTSUS Subheadings |
10% Increased to 25% Increased to 30% |
September 28, 2018
May 9, 2019 October 15, 2019 (postponed from Oct. 1) |
| List 4 | $300 Billion
3,805 HTSUS Subheadings |
10% | September 1, 2019 |
| List 4A | ~$120 Billion |
15% 7.5%
|
September 1, 2019
February 14, 2020 |
| List 4B | ~$180 Billion |
15% |
December 15, 2019 |
The USTR has made technical amendments to Lists 3, 4A, and 4B to relieve issues of double Section 301 tariffs on some goods. Effective September 24, 2019, the Section 301 additional tariff will not be imposed on goods classified under any of 39 subheadings “if the applied rate of duty for an entry is derived from another subheading and if the entry, for this reason, already is subject to the additional tariff.” In other words, if a component of a good in one of these subheadings is subject to the Section 301 tariff, the good itself will not be subject to that tariff as well.
Product Exclusions
What You Should Know
As part of the Section 301 actions, the U.S. Trade Representative’s (USTR) determination included a decision to establish a product exclusion process. As part of the exclusion process, the USTR invites comments from interested persons with respect to the proposed action to be taken in the investigation. The USTR requests comments with respect to any aspect of the proposed action, including:
- The specific tariff subheadings to be subject to increased duties, including whether the subheadings listed in the Annex should be retained or removed, or whether subheadings not currently on the list should be added
- The level of the increase, if any, in the rate of duty
- The appropriate aggregate level of trade to be covered by additional duties
Public Hearings and Deadlines for Submitting Exclusion Requests
| List No. | Public Hearing | Deadline for Submitting Exclusion Requests | Deadline for Submitting Extension Requests |
| List 1 | May 15, 2018 | May 22, 2018 | November 30, 2019
April 30, 2020 June 1, 2020 July 7, 2020 August 30, 2020 |
| List 2 | July 24, 2018 | July 31, 2018 | June 1, 2020 |
| List 3 | August 20-24, 2018
August 30, 2018 |
August 27, 2019
September 30, 2019 |
June 8, 2020
July 7, 2020 |
| List 4 | January 31, 2020 |
If you have a pending product exclusion request with the USTR and you are concerned that an entry may liquidate before the USTR renders a decision on the exclusion request, you can:
- Request an extension of the liquidation deadline and file a Post Summary Correction no later than 15 days prior to the extended date of liquidation
- File a protest up to 180 days after liquidation
Product Exclusions Granted
To date, the USTR has published the following Federal Register notices granting product exclusions requests for the lists below.
| List No. | Federal Register Notice |
| List 1 | December 2018, March 2019, April 2019, May 2019, June 2019, July 2019, September 2019, October 2019, December 2019, February 2020, March 2020, April 2020, May 14, 2020, May 28, 2020, and July 2020 |
| List 2 | July 2019,September 2019, October 2019, and July 2020 |
| List 3 | August 2019, September 2019, October 2018, November 13, 2019, November 27, 2019, December 2019, January 2020, February 2020, March 16, 2020, March 25, 2020, April 2020, May 8, 2020, May 28, 2020, June 2020, and August 2020 NEW! |
| List 4 | March 10, 2020, March 17, 2020, March 25, 2020, May 2020, June 2020, July 7, 2020, July 20, 2020, August 5, 2020, and August 28, 2020 NEW! |
The Office of the U.S. Trade Representative has completed its processing of requests for exclusions on List 1 and List 2 goods.
- Of the 10,823 List 1 exclusion requests received, 7,157 were denied and 3,666 were granted
- Of the 2,868 exclusion requests received for List 2 goods, 1,794 were denied and 1,074 were granted
The USTR is continuing to review exclusion requests for List 3 goods.
Product exclusions granted by the USTR are retroactive to the effective date. List 1 and 2 exclusions will extend for one year after the publication of the exclusion notice in the Federal Register, while List 3 exclusions will expire of 8/7/2020. Per the USTR’s Federal Register notices, the product exclusions are available for any product that meets the description in the annex to the Federal Register notice, regardless of whether the importer filed an exclusion request. The scope of each inclusion is governed by the scope of the 10-digit subheadings and product descriptions listed in the annex, not by the product descriptions set out in any particular request for exclusion.
Importers of Record (IOR) may request an administrative refund for products which were granted an exclusion by the USTR by filing a Post Summary Correction. Post Summary Corrections may be filed 300 days after release or 15 days prior to liquidation, whichever occurs first.
Tariff Exclusion Requests Granted
by the USTR
Combined Listing
All Product Exclusions from Lists 1, 2, 3, 4A and 4B
Click here to download the complete list in Excel format.
China List 1 ($34 Billion)
Product exclusions granted by the USTR on List 1 are retroactive to July 6, 2018 and will extend until the expiration date shown on the attached list.
China List 2 ($16 Billion)
Product exclusions granted by the USTR on List 2 are retroactive to August 23, 2018 and will extend until the expiration date shown on the attached list.
China List 3 ($200 Billion)
Product exclusions granted by the USTR on List 3 are retroactive to September 24, 2018 and will extend for one year after the publication of the exclusion notice in the Federal Register.
China List 4 ($300 Billion)
The product exclusions announced will apply as of September 1, 2019, the effective date of the $300 billion action, and will extend for 1 year from the effective date of the action.
China’s Retaliatory Tariffs
China has responded to all rounds of Section 301 tariffs by imposing tit-for-tariffs of their own. China retaliatory tariffs appear to be targeting Trump’s core supporters – U.S. farmers, ranchers and industrial workers.
| Round No. | Covered Products | Additional Tariff Rate | Effective Date |
| List 1 | $34 Billion
545 products, including soybeans, various chemicals, and automobiles |
25% | July 6, 2018 |
| List 2 | $16 Billion
333 products, including fuel, coal, and medical equipment |
25% | August 23, 2018 |
| List 3 | $60 Billion
5,207 products, including agricultural equipment, machinery and textiles |
5% – 10%
|
September 28, 2018
|
| List 4 |
1,718 products 3,361 products |
3% – 5% Suspended |
August 23, 2019 August 23, 2019 |
China’s Product Exclusions
On September 11, 2019 China announced their first product exclusions since the U.S.-China trade war began.
China’s State Council Tariff Commission said it will continue to review exemption requests and announce new exemptions in the future.
Tariff Exemption Requests Granted
by China’s State Council Tariff Commission
Batch 1
Product exclusions granted by China’s State Council Tariff Commission for Lists 1 and 2 will be exempt from additional duties effective September 17 and will remain in effect through September 16, 2020.
List 1
Goods appearing on this list are eligible for refunds if filed within 6 months.
List 2
Goods appearing on this list are not eligible for refunds.
List 3
No further information, including expiration dates and refund eligibility has been released.
Batch 2
Batch 2 exclusions from the additional 25% tariff will be effective from May 19, 2020 to May 18, 2021. Importers of Record have six months to apply for refunds.
List 1
Goods appearing on this list are eligible for refunds if filed within 6 months.
