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USTR Seeking Comments on Extending First 301 Exclusions Past Dec. 28

In a sign that tariff negotiations with China will continue into 2020, the Office of the U.S. Trade Representative will publish a notice in the Federal Register this week asking for comments on whether the first set of tariff exclusions on Chinese imports on List 1, set to expire Dec. 28, should last another year. The Docket Number is USTR-2019-0019.

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Each exclusion will be evaluated independently. The draft notice says: The focus of the evaluation will be whether, despite the first imposition of these additional duties in July 2018, the particular product remains available only from China. In addressing this factor, commenters should address specifically:

  • Whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries.
  • Any changes in the global supply chain since July 2018 with respect to the particular product, or any other relevant industry developments.
  • The efforts, if any, the importers or U.S. purchasers have undertaken since July 2018 to source the product from the United States or third countries.

The companies are required to post a public rationale, even if the meat of their arguments come through a portal that offers confidentiality for sensitive business information.