Section 301 Tariff Exclusions Expiring For 99 Chinese Products

Trade & Policy

Section 301 Tariff Exclusions Expiring For 99 Chinese Products

Nearly one hundred products imported from mainland China became subject to the Section 301 additional 25% tariff on List 1 and List 2 goods when their exclusions expired on 20 September. Exclusions are being extended for some products but only through 31 December. The Office of the US Trade Representative considered extending tariff exclusions covering 178 List 1 and List 2 goods from mainland China. However, USTR ultimately declined to extend 99 of these exclusions, meaning those goods have been subject to the 25% tariff from 20 September. USTR did approve extensions of 62 List 1 exclusions and 17 List 2 exclusions. These exclusions, which must be claimed using new HTSUS 9903.88.58 (List 1) or 9903.88.59 (List 2), are available for any product that meets the specified product description regardless of whether the importer filed an exclusion request. However, while USTR said it would consider extending these exclusions for up to 12 months, it ultimately only extended them through 31 December. USTR noted that this shortened extension is due to "the cumulative effect of current and possible future exclusions or extensions of exclusions on the effectiveness of" the Section 301 tariffs. USTR explained that it has granted more than 6,800 exclusion requests to date, has extended some of these exclusions and may consider further extensions. USTR has vowed to take account of the cumulative effect of exclusions in considering the possible further extension of these and other exclusions.