The U.S. Trade Representative (USTR) is considering an extension for up to 12 months on the exclusions granted thus far from the additional 25% Section 301 tariffs on List 3 goods from China. The exclusions are currently set to expire on August 7, 2020.
The USTR is requesting comments from interested parties on whether to extend particular exclusions granted. Comments may be submitted no later than 11:59 p.m. (EDT) on June 8, 2020 via the USTR Comment Portal; Docket ID number USTR-2020-0015.
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
- Is the product subject to an antidumping or countervailing duty order?
- 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 September 2018?
- What efforts, if any, have been undertaken to source the product elsewhere since September 2018?
- 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
- Have Chinese suppliers lowered their prices for the excluded product following the imposition of the additional duties?
- 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?
- Any other additional information in support of the extension request
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 exclusion comment period applies only to exclusions granted by the USTR for List 3 goods on or before March 26, 2020. Extensions for List 3 exclusions granted after this date are not being considered at this time.
The official notice, published by the USTR on May 6, 2020, can be found here.
About the Section 301 Tariffs on List 3 Goods
On September 24, 2018, the USTR imposed additional duties of 10% 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. On May 10, 2019, the USTR increased the additional duty to 25%. The duties were imposed on 5,757 full and partial subheadings of the Harmonized Tariff Schedule of the U.S. (HTSUS), with an approximate annual trade value of $200 billion.
Since August 2019, the USTR has issued 11 rounds of exclusion from the Section 301 tariffs on List 3 goods, all of which are set to expire on August 7, 2020. A complete list of these exclusions can be found 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.