Section 301 Exclusions to Return as USTR Sets Policy with China

The Biden administration’s trade policy with China is coming into sharper focus as updates on its comprehensive review arrive. For shippers, the big news is a return and retooling of the Section 301 exclusions process.

According to reports, the United States Trade Representative (USTR) announced its intentions in a speech at the Center for Strategic & International Studies.

News of renewing the Section 301 exclusion program comes as U.S. importers have spent all of 2021 without exclusion options. Shippers have paid full duties on all imports from China without reprieve. Lawmakers and industry advocates alike have lobbied for a renewal of the program. Now the Biden administration indicates that it intends to do just that.

While news of exclusions will come as a relief to many importers, it seems that the Biden administration intends to continue with retaliatory Section 301 tariffs for the majority of goods imported from China.

When enacted, the exclusion application process will allow importers to avoid Section 301 tariffs on named goods and according to specific circumstances.

Scarbrough is tracking developments of this story and will share updates as they are available. Contact Scarbrough Consulting and Scarbrough International for insight or assistance regarding Section 301 Exclusions.

Update: USTR Considering Exclusions for 549 Products

The USTR will consider whether to renew 549 product exclusions that had been extended by the Trump administration. Consequently, the USTR will accept public comments on the matter via its online portal between October 12, 2021 and December 1, 2021.