Section 301 additional duties currently apply to certain product of Chinese origin due to China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation, which threaten the long-term competitiveness of the U.S.
Please see Customs and Border Protection’s (CBP’s) Section 301 HTSUS Reference Guide for a list of affected tariffs.
There are currently three lists of products subject to additional duties, with a fourth list being considered. Additional duty rates of 25 percent apply to List One and List Two products. List Three products have a 10 percent duty rate.
The U.S. Trade Representative (USTR) periodically announces their decisions on additional approved product exclusion requests.
This third announcement of approved exclusions by the USTR for Section 301 List One products was granted on April 18, 2019. Exclusions were approved for 21 product descriptions, covering 348 separate exclusion requests.
These are in addition to previous exclusions granted on March 25, 2019 for 87 exclusion requests, and those granted on December 28, 2018, for nearly 1,000 separate exclusion requests.
Approved List One exclusions will apply for product entering the U.S. on or after July 6, 2018, and extend for one year from the publication of the notice.
A new Harmonized Tariff Schedule (HTS) number of 9903.88.07 was created for these newly excluded products. (Previously granted exclusions use HTS 9903.88.05 or 9903.88.06).
Once CBP issues guidance and implements ACE enhancements, a Post Summary Correction (PSC) or a Protest may be submitted for a refund.
All importers, not just those who applied for the exclusion, will be able to take advantage of these exclusions.
The 21 new Excluded Product are based on both the tariff and a further description that must be matched to the imported product to determine if they are applicable.
The USTR had not yet announced any granted exclusion requests for Section 301 List Two products, which took effect on August 23, 2018, although more than 2,500 exclusion requests have been submitted.
Currently, there is no exclusion request process for List 3. As long as List 3 remains at 10 percent duty, there will be no exclusion process implemented.
There is no basis available for exempting U.S. importers who use Foreign Trade Zones (FTZs) from the Section 301 additional duties since the trade remedy applies to all other U.S. importers.
Please see our previous Trade News article on Section 301 Exclusions at
Section 301 Exclusions for Chinese Origin Goods, and 87 More Exclusions Granted for Section 301 List One Chinese Origin Goods
If you have any questions regarding the status of the Section 301 exclusions, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs group at usregaffairs@livingstonintl.com