On March 17, 2020, The United States Trade Representative granted the second list of product exclusions for Section 301 List 4 products.  The exclusions as set out in the Annex are reflected 19 specially prepared product descriptions covering 39 separate exclusion requests, and must be claimed using subheading 9903.88.42.

section 301 list 4 exclusions

Exclusions will be retroactive to September 1, 2019 and will remain effective until September 1, 2020. The exclusions are available for any product that meets the description in the Annex, regardless of whether the importer filed an exclusion request. The exclusions comprise of different medical supplies, and were most likely pushed due to the coronavirus outbreak.

The exclusions include:

  • Bowls of molded plastics, with clips for retaining guide wires during surgical procedures (3926.90.9990)
  • Disposable graduated medicine dispensing cups of plastics (3926.90.9990)
  • Pads of foam plastics, with hook and loop fastener straps, integrated arm protectors, and accessory headrest, body straps, lift sheets, hand grips and face masks, of a kind used for positioning patients during medical procedures (3926.90.9990)
  • Single-use sterile drapes and covers of plastics, of a kind used to protect the sterile field in surgical operating rooms (3926.90.9990)
  • Sterile decanters of polystyrene plastics, each of a kind used to transfer aseptic fluids or medication to and from sterile bags, vials or glass containers (3926.90.9990)
  • Cold packs consisting of a single-use, instant, endothermic chemical reaction cold pack combined with a textile exterior lining (6307.90.9889)
  • Disposable shoe and boot covers of man-made fiber fabrics (6307.90.9889)
  • Eye compresses, each consisting of a fabric cover filled with silica or gel beads, with or without a hook-and-loop fastener strap (6307.90.9889)
  • Face masks, single-use, of textile fabrics (6307.90.9889)
  • Gel pads of textile materials, each with removable fabric sleeves, in the shape of hearts, circles or quadrants (6307.90.9889)
  • Hot packs of textile material, single-use (exothermic chemical reaction) (6307.90.9889)
  • Laparotomy sponges of cotton (6307.90.9889)
  • Patient restraint or safety straps of textile materials, with hook-and-loop or ladder lock fasteners (6307.90.9889)
  • Single-use blood pressure cuff sleeves of textile materials (6307.90.9889)
  • Single-use medical masks of textile material (6307.90.9889)
  • Single-use stethoscope covers (6307.90.9889)
  • Woven gauze sponges of cotton in square or rectangular sizes (6307.90.9889)
  • Electromechanical shoe cover dispenser, of steel (8479.89.6500)
  • Protective articles (9004.90.0000)

Background

On August 18, 2017, USTR initiated an investigation into certain acts, policies and practices of the Government of China related to technology transfer, intellectual property and innovation (82 FR 40213). During the investigation, the Trade Representative determined that the acts, policies and practices of China under investigation are unreasonable or discriminatory and burden or restrict U.S. commerce, and are thus actionable under Section 301(b) of the Trade Act of 1974, as amended (Trade Act).

In response, President Trump initiated a number of actions which imposed ad valorem tariffs on certain imports originating in China.  Four separate lists have been announced.  To view the most up to date information, check out our debriefing on Section 301 Imports from China.  This post indicates effective dates, duty rates, and more.


What to do

Scarbrough Consulting, Inc. is offering a free 30-minute consultation to any company that may be affected by the Section 301 announcements.  Please send an email to consulting@scarbrough-intl.com or fill out the form below.  Our Global Trade Experts and Licensed Customs brokers are here to help.


Consulting

Scarbrough is offering a FREE 30-minute consultation to any importer affected by the Section 301 Tariffs. Email consulting@scarbrough-intl.com or fill out the form below.


Other ways to Learn More about Duty Savings

If the Section 301 tariffs are affecting your company, watch this webinar recording to learn more.  Scarbrough’s President and COO, Adam Hill, along with Patrick Caulfield, an attorney at GDLSK, an international trade and customs law firm, talk about legal opportunities to recover or avoid paying duty to CBP.  This is an interactive webinar set up as a question/answer forum.


Resources

To read more about Section 301, visit USTR.gov

Section 301 China Imports

Section 301 Product Exclusions

List 1 Product Exclusions Fact Sheet

List 2 Product Exclusions Fact Sheet

List 3 Product Exclusions Fact Sheet