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.
On March 25, 2019, the U.S. Trade Representative (USTR) granted the second round of Section 301 product exclusions for List One products. This includes 87 additional approved exclusion requests.
These exclusions are in addition to those previously granted on December 28, 2018, where nearly 1,000 List One Product exclusions were approved.
Note that the USTR periodically announces their decisions on additional approved product 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 9903.88.06 was created for these newly excluded products. (Previously granted exclusions use HTS 9903.88.05).
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.
Exclusions will apply to all product entered in the below three HTS:
- 8412.21.0045
- 8430.31.0040
- 8607.21.1000
Additional exclusions for 30 specified products, found in 26 HTS, may be reviewed in the Annex to USTR notice. These 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.
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