June 20, 2019
The Office of the U.S. Trade Representative announced today that it will accept exclusion requests for Section 301 List 3 tariffs beginning on June 30. Merchandise on List 3, which affects $200 billion worth of imports from China, is currently subject to additional tariffs of 25%.
Any interested persons, including importers, purchasers, industry / trade associations, and U.S. producers, may submit requests for exclusions through the USTR portal between noon EDT on June 30 and September 30, 2019. Separate requests must be submitted for each product, and each request must include the following information:
- Contact information, including the full legal name of the organization making the request and the primary point of contact. Requesters should note if they are a third party (law firm, trade association, or customs broker) submitting on behalf of an organization or industry. Small businesses are encouraged to include their SMB status.
- Applicable ten-digit HSUS number. Please note that models classified under different eight-digit or ten-digit subheadings are considered different products and, therefore, separate exclusion requests must be filed
- Product name and a detailed product description, including physical characteristics such as dimensions, weight, material composition, etc.
- Product function, application, principal use, and unique physical features that distinguish it from other products under the same eight-digit subheading
- Requester’s relationship to the product (i.e., importer, U.S. producer, purchaser, etc.)
- Annual quantity imported in 2017, 2018, and Q1 2019, and values per year for 1) Chinese-origin products, 2) domestic product, and 3) third-country products purchased by the requester
- Gross revenues for 2017 and the first quarters of 2018 and 2019 of the requester
- The percentage of the requester’s total gross sales of the Chinese-origin product in 2018 (for imports sold as final products)
- The percentage of the total cost of producing the final product(s) using the Chinese-origin goods and the percentage of the requester’s total gross sales in 2018 for the final product (for imports used in the production of final products)
Additionally, the requester should address the following considerations:
- Is the product only available from China or is the product and/or a comparable product available from sources in the U.S. and/or a third country?
- Has the requester attempted to source the product from sources in the U.S. or third countries?
- Is the product strategically important or related to the “Made in China 2025” or other Chinese industrial program?
Requesters are also encouraged to provide information about the possible cumulative effects of the Section 301 tariffs, particularly in regard to the value of the requester’s import which are covered by previous tariff actions as well as information about any previously submitted exclusion requests. Requesters may provide any other information relevant to the evaluation of the exclusion request.
All products granted an exclusions by the USTR will be excluded from the application of the additional 25% tariff, retroactive to September 24, 2018. Exclusions will remain in effect for a period of one year after the exclusion is published in the Federal Register.
The List 3 tariff was levied in response to a Section 301 investigation which determined that China’s acts, practices, and policies related to technology transfer and intellectual property are unreasonable and discriminatory. The additional tariff was originally set at 10%, but was subsequently raised to 25%.
If you have any questions or concerns regarding the exclusion process, please send an email to Compliance@oceanair.net and a member of OCEANAIR’s Compliance team will be happy to assist you.
