The U.S. Trade Representative (USTR), who periodically announces decisions of additional approved product exclusion requests, have approved a 5th Tranche of Exclusions from Section 301 duties for List 1 products, covering 464 separate exclusion requests.
The new 5th Tranche of List 1 Excluded Product include Harmonized Tariff Schedule (HTS) number 8537.10.8000, as well as 88 specially prepared product descriptions, which are based on both the tariff and a further description that must be matched to the imported product to determine if they are applicable.
Section 301 additional duties apply to certain Chinese origin product, and were initiated 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.
Previously granted exclusions for Section 301 List 1 products, include:
- those granted on May 14, 2019 for 515 separate exclusions requests,
- those granted on April 18, 2019 for 348 separate exclusions requests,
- those granted on March 25, 2019 for 87 exclusion requests, and
- those granted on December 28, 2018, for nearly 1,000 separate exclusion requests.
All approved List One exclusions apply for product entering the U.S. on or after July 6, 2018, and extend for one year from the date of publication of the notice.
A new HTS number of 9903.88.10 was created for this 5th tranche of excluded products. The HTS used for excluded products is based on the tranche approved, with
HTS 9903.88.05 used for the 1st tranche; HTS 9903.88.06 used for the 2nd tranche; HTS 9903.88.07 used for the 3rd tranche, and HTS 9903.88.08 used for the 4th tranche.
To refund duties previously paid under any of Section 301 exclusions, a Post Summary Correction (PSC) may be used for unliquidated entries. If liquidated, a Protest may be submitted for entries liquidated within the past 180 days. Where necessary, importers may request an extension of liquidation by submitting a written request before the statutory period expires, showing good cause why the extension should be granted.
Importers should contact their Livingston Service representative to request any applicable PSCs, Protests, or liquidation extensions be filed.
All importers, not just those who applied for the exclusion, will be able to take advantage of these exclusions.
Please see our previous Trade News articles for List 1 exclusions:
- Section 301 Exclusions for Chinese Origin Goods
- 87 More Exclusions Granted for Section 301 List One Chinese Origin Goods
- 21 New Exclusions Granted for Chinese Origin Section 301 List One Products
- 4th Tranche of Exclusions Issued on Chinese Origin Section 301 for List 1
There are currently three lists of products subject to additional Section 301 duties, with a 4th list being considered for the remaining Chinese origin product that were not included in one of the first three lists.
List 1 was effective July 6, 2018; List 2 was effective August 23, 2018; List 3 was effective Sep 24, 2018; and List 4, if enacted, could enter into force in July 2019. All lists impose a 25% additional duty*.
*Note, for List 3, entries prior to May 10, 2019, and entries after May 10, 2019 that were exported prior to May10, 2019, carried only a 10% additional duty rate.
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 email@example.com