On October 5, 2021, the Office of the U.S. Trade Representative (USTR”) announced that it is seeking comment on the possible reinstatement of certain expired China 301 tariff exclusions.
Beginning in 2018, the USTR imposed additional tariffs on specified products of China in response to a finding that certain of China’s acts, policies, and practices respecting intellectual property were unreasonable or discriminatory and burden or restrict U.S. commerce.
In connection with its action, the USTR established a process by which exclusions from the China 301 tariff could be requested based on a number of specified factors.
In total, the USTR granted over 2,200 exclusions – 549 of which were extended. With the exception of exclusions related to the Covid pandemic, all of these 549 exclusions have expired.[1] The USTR is now seeking comment on the possible reinstatement of the 549 extended exclusions and the appropriate duration of any reinstatement. A full list of the 549 items, which cross over various product sectors, can be accessed at Index of 549 Previously Extended Exclusions.
Decisions as to reinstatement will be made on a case-by-case basis based on a variety of factors related to product availability from China, the U.S. and third countries and the impact on U.S. interests, including the impact on small businesses, employment, manufacturing output, and critical supply chains in the United States, as well as the overall impact on the goal of eliminating the underlying acts, policies, and practices of China.
The USTR Notice provides that “Exclusions reinstated pursuant to this review would be retroactive with respect to merchandise entered, or withdrawn from warehouse, for consumption on or after the opening of the docket on October 12, 2021, for which the entries are not liquidated at the time the claim to apply the reinstated exclusion is made to U.S. Customs and Border Protection in accordance with their procedures.” This language implies that a claim with respect to any reinstated exclusion could only be made where: a) the goods were entered on or after October 12, 2021, and b) the entry is still unliquidated.
Comments will be accepted during the period October 12, 2021 through December 1, 2021 and must be submitted electronically and include specified data elements.
We are available to assist you in the evaluating whether your products are covered by this action, draft comments on behalf of your company and otherwise provide guidance on China 301 tariff mitigation strategies. Please do not hesitate to contact Arthur Bodek or any of our other attorneys to discuss further.
[1] There exists a separate list of exclusions relating to Covid / healthcare products which are currently in effect through November 14, 2021. Further information at: https://www.gdlsk.com/ustr-extends-expiring-china-301-tariff-exclusions-on-certain-medical-care-products-through-november-14-2021/.
