Reminder: Oct. 9 Deadline to Request Exclusions from 25 Percent Tariff on China List 1 Goods

Tuesday, September 25, 2018
Sandler, Travis & Rosenberg Trade Report

Readers are reminded that Oct. 9 is the deadline for submitting requests for exclusions from the additional 25 percent tariff imposed as of July 6 on so-called List 1 goods imported from China. This tariff, which affects 818 tariff lines, was levied in response to a Section 301 investigation determination that China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation are unreasonable and discriminatory. Any exclusions granted will be retroactive to July 6 and extend one year after the exclusion determination is published in the Federal Register.

(Click here for ST&R’s web page providing information on the U.S. tariffs imposed under Section 232 and Section 301 as well as the retaliatory tariffs trading partners are levying on U.S. goods.)

Unlike the process for requesting exclusions from the global Section 232 tariffs on steel and aluminum, any interested person, including trade associations, may requests exclusions from the Section 301 tariffs. Each request must include the following information.

– identification of the product in terms of the physical characteristics that distinguish it from other products within the covered eight-digit HTSUS subheading (requests that identify the product in terms of the identity of the producer, importer, or ultimate consumer; actual or chief use; or trademarks or trade names will not be considered)

– applicable ten-digit HTSUS number

– annual quantity and value of Chinese-origin product the requester purchased in each of the last three years

In addition, each request should address the following factors.

– whether the product is available only from China and whether a comparable product is available from sources in the U.S. and/or third countries

– whether the additional tariff on the product would cause severe economic harm to the requester or other U.S. interests

– whether the product is strategically important or related to “Made in China 2025” or other Chinese industrial programs

Requesters may also submit information on the ability of U.S. Customs and Border Protection to administer the exclusion.

For further information on this process, please contact Nicole Bivens Collinson at (202) 730-4956 or Kristen Smith at (202) 730-4965.

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