On September 17, 2019, the U.S. Trade Representative (“USTR”) announced that 38 additional product descriptions will be excluded from Sec. 301, Tranche 3; this latest set supplements the first set of exclusions the USTR granted to Tranche 3 products on August 7, 2019. The list of 38 newly-excluded product descriptions is provided below.
Chinese-origin products listed on Tranche 3 are currently subject to an additional duty rate of 25% ad valorem; the rate is scheduled to increase to 30% ad valorem on October 15, 2019. However, any Chinese-origin product that “meets the description” of an excluded product can claim the exclusion at entry and enjoy its benefit.
Specifically, products which satisfy the exclusion descriptions will not be subject to the Sec. 301 duties when entered into the U.S. The benefit is also retroactive to September 24, 2018; importers can correct prior entries, or claim refunds for Sec. 301 duties paid, provided certain regulatory timeframes are satisfied.
The USTR noted in its September 17, 2019 announcement that in order to establish uniformity, all exclusions granted to Tranche 3 tariff provisions (i.e., those announced on August 7, 2019; on September 17, 2019; and all future exclusions) will be effective September 24, 2018 to August 7, 2020.
In addition to the product exclusions, the USTR also announced certain technical amendments to Tranches 3 and 4. The amendments to Tranche 3 are retroactive to September 24, 2018. The amendments to Tranche 4A (which is currently subject to an additional duty of 15% ad valorem) are retroactive to September 1, 2019. The purpose of the amendments is to ensure that importers are not paying the Sec. 301 duty twice on the same merchandise. As explained by the USTR, “[t]hese amendments provide that the additional duties do not apply to entries under certain subheadings if the applied rate of duty for an entry is derived from another subheading, and if the entry for this reason already is subject to the additional duties.” A full list of the tariff provisions impacted by these technical amendments is provided in Annex B of the USTR announcement:
The exclusion process for Tranche 3 remains open until September 30, 2019. Although an exclusion process for Tranche 4 has been announced by the USTR, the process has not yet opened and dates have not been specified.
If your business is interested in filing an exclusion request, seeking a refund of past duties paid under Sec. 301, and/or discussing Sec. 301 strategies more generally, contact our office and speak with one of our attorneys.
List of Products Excluded from Tranche 3, Pursuant to September 17, 2019 Announcement:
(1) Chabazite zeolites having a silica-alumina ratio of 20:1 to 24:1, valued at $31 to $39 per kg (described in statistical reporting number 3824.99.3900)
(2) Cups of polypropylene, with a fluted wood paper filter fitted and affixed to the inside, measuring 44.1 mm in height, of a kind used to produce capsules for single-cup coffee brewing systems (described in statistical reporting number 3923.90.0080)
(3) Anti-electrostatic discharge mats, comprising a conductive rubber mat measuring 40 cm or more but not exceeding 60 cm in width, 80 or more but not exceeding 125 cm in length, and 2 mm in thickness, with integrated discharge points for a grounding wire clip or an anti-static wrist strap, such mats printed on the surface with measuring rules and technical reference data (described in statistical reporting number 4016.91.0000)
(4) O-rings, of nitrile rubber, ethylene propylene diene monomer (EPDM) rubber or fluoroelastomers (described in statistical reporting number 4016.93.1010)
(5) Dog harnesses and retractable dog leashes (described in statistical reporting number 4201.00.3000)
(6) Portable, single-use grills for heating food, each comprising bamboo charcoal fuel, expanded perlite insulation, bamboo rods for suspending foods over the charcoal flame, and cut paper or paperboard in shapes specially designed for assembly of a grill body (described in statistical reporting number 4402.10.0000)
(7) Laminated wood flooring panels having a hardwood veneer finished surface and a backing of pine strips or blocks, the panels having tongue-and-groove outer edges and being in thickness greater than 1.4 cm but not greater than 1.5 cm. (described in statistical reporting number 4412.99.5105)
(8) Rattan webbing, woven into decorative patterns (described in statistical reporting number 4601.93.0100)
(9) Paper pulp sponge blocks, measuring 38 cm by 38 cm by 102 cm (15 inches by 15 inches by 40 inches) (described in statistical reporting number 4823.70.0040)
(10) Woven microfiber fabric of 100 percent polyester, not exceeding 150/75 or 104/72 threads per inch, weighing 83 gram/m2 (described in statistical reporting number 5407.10.0010)
(11) Woven fabric sheeting of 65 percent polyester and 35 percent cotton, weighing less than 170g/ m2, not exceeding 45/45 or 110/76 threads per inch (described in statistical reporting number 5513.11.0040)
(12) Polyester or viscose fabric coated with polyurethane, the foregoing measuring 137 cm (54 inches) in width, and weighing 187 grams/m2 (described in statistical reporting number 5903.20.2500)
(13) Stainless steel mesh filters (described in statistical reporting number 7314.14.1000)
(14) Grills composed of steel wire, each measuring 49 cm by 47 cm (19.25 inches by 18.5 inches), weighing 0.36 kg (0.80 lbs.), designed as cooking surface of barbecue grill (described in statistical reporting number 7321.90.6090)
(15) Mounting boards of aluminum for guitar sound modifying (“effect”) devices, each consisting of an aluminum frame with above ground slots for the placement of devices and floor level slots for the on/off foot-operated pedal switches which control the modifying devices (described in statistical reporting number 7616.99.5190)
(16) Hand rails of tubular stainless steel, with wall connectors, of a length exceeding 300 mm but not exceeding 1.3 m (described in statistical reporting number 8302.41.6080)
(17) Stamped and formed latches of steel (described in statistical reporting number 8302.49.6085)
(18) Stamped and formed brackets of steel (described in statistical reporting number 8302.50.0000)
(19) Spark ignition reciprocating piston engines of a cylinder capacity exceeding 100 cc but not exceeding 250 cc, not exceeding 10.0 kW (described in statistical reporting number 8407.32.9040)
(20) Fuel pumps for internal combustion, spark ignition piston engines (described in statistical reporting number 8413.30.9030)
(21) Parts, of aluminum, iron or steel, for blowers other than fans of 8414.51 (described in statistical reporting number 8414.90.1080)
(22) Mouse input devices for automatic data processing (ADP) machines, each valued over $70 (described in statistical reporting number 8471.60.9050)
(23) Trackpad input units for automatic data processing (ADP) machines, each valued over $100 (described in statistical reporting number 8471.60.9050)
(24) Printed circuit assemblies to enhance the graphics performance of automatic data processing (ADP) machines (“accelerator modules”) (described in statistical reporting number 8473.30.1180)
(25) Printed circuit assemblies for rendering images onto computer screens (“graphics processing modules”) (described in statistical reporting number 8473.30.1180)
(26) Printed circuit assemblies, constituting unfinished logic boards (described in statistical reporting number 8473.30.1180)
(27) Parts and accessories of machines of heading 8471 not incorporating goods of headings 8541 or 8542 (described in statistical reporting number 8473.30.5100)
(28) Refrigerated and heated vending machines for dispensing live bait and fishing tackle, each machine weighing more than 350 kg (described in statistical reporting number 8476.81.0000)
(29) Power supplies suitable for physical incorporation into automatic data processing (ADP) machines or units thereof of heading 8471, each with a power output exceeding 500 W, measuring 148mm in length, 43 mm in width and 335 mm in height (described in statistical reporting number 8504.40.6018)
(30) Cold cathode electric neon discharge lamps, measuring 6.5 mm (1/4 inch) or less in diameter and 16 mm (5/8 inch ) or less in length (described in statistical reporting number 8539.39.9000)
(31) Guide pins and guide bolts designed for use in brakes and servo-brakes of subheading 8708.30 (described in statistical reporting number 8708.30.5090)
(32) Aluminum radiators for motor vehicles of headings 8701 to 8705 (other than for tractors suitable for agricultural use), measuring 50 cm or more but not exceeding 77 cm (20 inches to 30 inches) in width, 50 cm or more but not exceeding 77 cm (20 inches to 30 inches) in height, and 5 cm or more but not exceeding 11 cm (2 inches to 4 inches) in thickness, consisting of upper and lower tanks or side tanks welded to a center core (described in statistical reporting number 8708.91.5000)
(33) Single-speed bicycles having both wheels exceeding 63.5 cm in diameter, weighing less than 16.3 kg without accessories and not designed for use with tires having a cross-sectional diameter exceeding 4.13 cm (described in statistical reporting number 8712.00.2500)
(34) Tractor trailer skirts, consisting of panels designed to be attached to each side of a trailer, each with an upper section having a polyethylene core, steel layer and polyester finish coat and each lower section composed of thermoplastic vulcanite compound (described in statistical reporting number 8716.90.5060)
(35) Miniature lighting sets of a kind used for Christmas trees (described in statistical reporting number 9405.30.0010)
(36) LED light fixtures, of a kind used in horticulture, containing over 5,000 LEDs spread across 6 light bars (described in statistical reporting number 9405.40.8440)
(37) Garden, patio and table top wick burning torches for outdoor use (described in statistical reporting number 9405.50.4000)
(38) Lamp shades of fabric over metal frame (described in statistical reporting number 9405.99.4090)
