More China Tariff Exclusion Requests Denied; List 3 Process Still Pending

Thursday, June 06, 2019

Sandler, Travis & Rosenberg Trade Report

Hundreds more requests for exclusions from the Section 301 additional tariffs on imports from China have recently been denied but some remain under consideration. The Office of the U.S. Trade Representative is continuing to review exclusion requests for List 1 and List 2 goods, imports of which are collectively worth about $50 billion, as it prepares to launch an exclusion request process for List 3 goods, which are worth about $200 billion.

List 1 Goods

Information from USTR indicates that of the 10,837 requests submitted for exclusions from the 25 percent additional tariff on List 1 goods, as of May 31 USTR had denied 6,288 (up from 6,005 on May 10) and granted 2,400 (up from 1,957).

A full list of approved exclusions can be found here. Importers should be aware that approved exclusions are available for any product that meets the specific product description, regardless of whether the importer filed an exclusion request. In addition, the scope of each exclusion is governed by the scope of the 10-digit subheading or the specific product description to which it applies, not by the product descriptions set out in any particular request.

In addition, exclusions granted are retroactive to July 6, 2018, and importers of affected goods may apply for refunds of tariffs paid on those goods since that date.

Of the remaining List 1 exclusion requests, 20 are undergoing an initial review of whether the request should be granted based on specified criteria (down from 365) and 2,096 are being reviewed with U.S. Customs and Border Protection to determine whether the exclusion would be administrable (down from 2,510). No comments are still being accepted on any List 1 request.

List 2 Goods

With respect to List 2 goods, USTR has denied 1,259 of the 2,931 exclusion requests received (up from 956) but has still not approved any. Comments are being accepted on one request, 81 are undergoing substantive review (down from 384), and 1,577 (unchanged) are being reviewed for administrability.

List 3 Goods

USTR has announced plans to initiate a process for requesting exclusions from the Section 301 additional tariff on List 3 goods, which increased from 10 percent to 25 percent as of May 10. USTR has yet to issue a notice outlining that process.

Customs and trade law firm Sandler, Travis & Rosenberg can help companies understand

whether their products are among those that have been excluded from these tariffs. ST&R has also been successful helping companies get specific tariff numbers and products removed from List 1 and List 2. For more information, please contact trade consultant Nicole Bivens Collinson at (202) 730-4956 or trade attorney Kristen Smith at (202) 730-4965.

© 2019, Sandler, Travis & Rosenberg, P.A. Originally published in the 06/06/19 issue of the Sandler, Travis & Rosenberg Trade Report. Reprinted by permission.

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