The U.S. Trade Representative (USTR) is considering an extension for up to 12 months on specific List 1 goods from China that were granted an exclusion from the additional 25% Section 301 tariffs. The exclusions are currently set to expire on October 2, 2020.
The USTR is requesting comments from interested parties on whether to extend particular exclusions granted in October 2019, December 2019, and February 2020. Comments may be submitted no later than 11:59 p.m. (EDT) on August 30, 2020 via the USTR Comment Portal; Docket ID number USTR-2020-0030.
Those requesting an exclusion extension are strongly encouraged to submit their comments with the following information:
- The full legal name of the organization submitting the comment
- Whether the commenter is a third party (e.g., law firm, trade association, or customs broker) submitting the comment on behalf of an organization or industry; if so, the name of the third party
- The commenter’s gross revenue for 2018 and 2019
- The number for the exclusion at issue, as provided in the annex of the applicable Federal Register notice
- The value and quantity of the excluded product purchased in 2018 and 2019
- If the product was purchased from a related company, provide the name of the company and its relationship to the requester
- Is the excluded product sold as a final product or as an input?
- Will the imposition of additional tariffs on the excluded product result in severe economic harm to the commenter or other U.S. interests?
- What efforts, if any, have been undertaken to source the product elsewhere since July 2018?
- Can the product or a comparable product be sourced in the U.S. or elsewhere?
- Have there been any changes in the product’s global supply chain or any other relevant industry developments since July 2018?
- Is the product subject to an antidumping or countervailing duty order?
- Have Chinese suppliers lowered their prices for the excluded product following the imposition of the additional duties?
- Any other additional information in support of the extension request
Please note that separate comments must be submitted for each exclusion.
While the focus of the USTR’s evaluation will be whether the particular product remains available only from China, the USTR will also consider whether the imposition of additional duties on the excluded products would result in severe economic harm to the commenter or other U.S. interests. The USTR will evaluate the possible extension of each exclusion on a case-by-case basis.
Please note that the extension comment period applies only to List 1 goods granted an exclusion by the USTR in October 2019, December 2019, and February 2020. The official notice, published by the USTR on July 31, 2020, can be found here.
About the Section 301 Tariffs on List 1 Goods
On July 6, 2018, the USTR imposed additional duties of 25% on goods from China in response to a Section 301 investigation into China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The duties were imposed on 818 full and partial subheadings of the Harmonized Tariff Schedule of the U.S. (HTSUS), with an approximate annual trade value of $34 billion.
The USTR initiated an exclusion process for List 1 goods in July 2018 and has granted multiple sets of exclusions. The complete list of List 1 exclusions can be found by clicking here.
For more information on the additional Section 301 tariffs or for assistance with the exclusion comment process, please contact Compliance@oceanair.net.
OCEANAIR will continue to monitor the situation and provide status updates on our China Section 301 Tariffs Updates page as they become available.