Section 301 List 3 tariff exclusions on Chinese imports are set to expire on December 31, leading toward higher import costs for a wide range of products and materials.  But there is good news for businesses looking to recoup Chinese import costs.

Businesses can apply for Section 301 duty refunds before the exclusions expire. These refunds are available post-entry if they were not captured on the original entry. It is a great way to recover costs before the end of 2020.

What Are Section 301 Tariffs and Exclusions?

Section 301 tariffs are duties applied to a large majority of Chinese products that arrive directly at U.S. ports.

The Trump administration opened its trade toolbox in 2018 as the US-China trade war escalated. Under the authority of Section 301 of the U.S. Trade Act of 1974, the President imposed new tariffs on a long list of Chinese imports.

Tariff hikes arrived for a broad spectrum of goods, impacting billions in imports throughout American industries. However, the U.S. Trade Representative deemed many items essential to American interests and fit for duty exclusion.

For more than two years, Section 301 exclusions have shielded businesses from steep duties imposed on Chinese imports by the Trump administration. Though nearly two-thirds of imports from China fell under the administration’s 2018 tariff increases, the U.S. Trade Representative announced exclusions for products ranging from smartwatches to medical equipment.

While the office of the U.S. Trade Representative has previously extended exclusions for up to a year, the current extension announced in September is only set for four months. Many of the current exclusions are due to expire 11:59 p.m. ET on December 31.

Once the tariff exclusions expire, a wide spectrum of Chinese imports will be subject to the previously imposed Section 301 duties of up to 25%.  

Take Advantage of Exclusions Before December 31

The window of opportunity to save money on Chinese imports is closing rapidly for many businesses.

Whether the USTR will again extend the Section 301 tariffs after the new year is unknown. Now is the time to ensure that your business takes advantage of all available savings opportunities.

First, do the research. Find out which of your business imports qualify for tariff exclusions on those items. If you are unsure, we can help

If your business has already paid duties on goods that qualify for exclusion, you may be able to recover those costs by applying for duty refund.

Savings opportunities are only available through the end of the year. Apply soon to take advantage of the current exclusions and save on import costs.

 Scarbrough is Here to Help

Scarbrough International offers expertise and insight that can help you and your business maximize the savings available from Section 301 exclusions. Contact Scarbrough today to learn more about duty exclusions and recovery. We are ready to help you find ways to save before the year’s end.