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Section 301 tariff exclusions
The Office of the U.S. Trade Representative has established an exclusion process for Section 301 tariffs on China. In a series of rounds since the tariffs took effect, importers have been able to request exclusions from the tariffs, as well as extensions to existing exclusions. Many exclusions have been allowed to expire, as well. Section 301 exclusions are applicable to all importers of a given good, which may be defined as an entire tariff schedule subheading or a subset of a subheading outlined in a written description.
The Office of the U.S. Trade Representative is requesting comments on whether all the tariff exclusions granted to Chinese imports on Section 301 List 4 that are set to expire Sept. 1 should be extended for up to another year, it said in a notice. The agency will start accepting comments on the extensions on July 1. The comments are due by July 30, it said. Each exclusion will be evaluated independently. The evaluation's focus will be whether, despite the first imposition of these additional duties, the particular product remains available only from China. The companies are required to post a public rationale.
The Office of the U.S. Trade Representative is requesting comments on whether to extend by up to another year tariff exclusions on Chinese imports on Section 301 List 2 that are set to expire Sept. 20 (see 1909180013), it said in a notice. The agency will start accepting comments on the extensions July 1. Comments are due July 30, it said. Each exclusion will be evaluated independently, focusing on whether, despite the first imposition of these additional duties, the particular product remains available only from China. The companies are required to post a public rationale.
The Office of the U.S. Trade Representative is requesting comments on whether tariff exclusions on Chinese imports on Section 301 List 2 that are set to expire Oct. 2 (see 1909300041) should extend by up to another year, it said in a notice. The agency will start accepting comments on the extensions July 1. The comments are due by July 30, it said. Each exclusion will be evaluated independently. The focus of the evaluation will be whether, despite the first imposition of these additional duties, the particular product remains available only from China. The companies are required to post a public rationale.
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Of the 52,746 exclusion requests related to Section 301 tariffs, 75.4% have been denied, and 12.3% are still under review, a new Congressional Research Service report says. Because most exclusions are for specific products, and don't cover an entire Harmonized Tariff Schedule subheading number, it's not possible to know how much trade is covered by the exclusions, CRS said. The report noted that some Congress members complain about the Office of the U.S. Trade Representative picking winners and losers, while others feel any exclusion undermines the ability of Section 301 to address China's unfair trade practices.
The Office of the U.S. Trade Representative issued a new product exclusion for motorboats from Section 301 tariffs on the third list of products from China, according to a pre-publication copy of a notice posted to the agency’s website June 19. The exclusion will apply retroactively to Sept. 24, 2018, the date the tariffs on the third list took effect, and will remain in effect until Aug. 7, 2020. The new exclusion will fall under previously created subheading 9903.88.48.
Any future Section 301 exclusion renewals will only last until the end of the year, U.S. Trade Representative Robert Lighthizer told the House Ways and Means Committee as he testified June 17 about the administration's trade agenda, adding that “they will decide what happens after that.”
The International Trade Commission on June 12 posted new Revision 13 to the 2020 Harmonized Tariff Schedule. This latest revision implements a round of exclusions from the fourth tranche of Section 301 tariffs on products from China, under subheading 9903.88.49 and U.S. note 20(bbb) to subchapter III of chapter 99 (see 2006090018). The ITC also amended an existing exclusion from the tariffs for certain pill crushing and grinding machines of subheading 8479.82.0080, per a USTR notice issued June 8.
International Trade Today is providing readers with some of the top stories for June 1-5 in case they were missed.