Alerts and Updates

U.S. Trade Representative Grants Second Round of Exclusions to Chinese-Origin Products Subject to Section 301 Tariffs

March 26, 2019

If the ongoing trade talks in China are not successful at resolving the current dispute, the Trade Representative anticipates a new exclusion process may be announced for products in List 3.

As the trade dispute between the United States and China continues, some companies will receive a reprieve from additional duties. On March 25, 2019, the United States Trade Representative published a second list of certain exclusion requests for products subject to an additional 25 percent duty assessed under the Section 301 investigation related to goods imported from China. See 84 FR 11152.

This second list follows the first round of exclusions granted by the Trade Representative on December 28, 2018. The first and second list of product exclusions, and the relevant Harmonized Tariff Schedule of the United States (HTSUS) numbers for these products, can be found in their respective Annexes. The product exclusions announced are retroactive to July 6, 2018, and clients will be able to recover additional duties already paid for these products.

The product exclusions are available for any product categorized under the HTSUS number listed in the Annexes of the Federal Register notices, regardless of whether the client filed for an exclusion request.

Although the time to request exclusions has currently expired for products subject to List 1 and List 2 of Section 301 tariffs, the Trade Representative has not yet announced an exclusion process for products categorized in List 3, which was published on September 21, 2018. If the ongoing trade talks in China are not successful at resolving the current dispute, the Trade Representative anticipates a new exclusion process may be announced for products in List 3.

Customs and Border Protection (CBP) has stated: “[T]he scope of each exclusion is governed by the scope of the 10-digit headings and product descriptions in the Annex[es], and not by the product descriptions set out in any particular request for exclusion.”

For products that have been granted exclusion, importers may file a Post Summary Correction (PSC) in accordance with the instructions published by CBP in their notice, CSMS #19-000155, of March 22, 2019. Please also refer to CBP’s updated CSMS#18-000657, Entry Summary Order for Multiple Harmonized Tariff Schedules in the Automated Commercial Environment (ACE). In the event that an entry has already liquidated, CBP advises that importers may protest the liquidation. Please refer to 19 U.S.C. 1514 and related CBP regulations.

For More Information

If you have any questions about this Alert or how to submit entries for excluded products to Customs and Border Patrol, please contact Brian S. Goldstein, J. Manly Parks, Nathan B. Reeder, any member of the International Practice Group or the attorney in the firm with whom you are in regular contact.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.