Section 301 Product Exclusions for List 1, List 2, List 3
Section 301 Product Exclusions for List 1, List 2, List 3
On September 19, 2019, The United States Trade Representative announced additional exclusions from the Section 301 tariffs on List 1, List 2, and List 3. In total, the exclusions cover 437 product descriptions, which reflect 1,170 exclusion requests. The exclusions are available for any product that meets the specified product description, regardless of whether the importer filed an exclusion request.
List 1
Effective July 6, 2018, the U.S. Trade Representative imposed additional duties on goods imported from China with an annual trade value of approximately $34 billion as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. Six prior exclusion announcements have been made for Section 301 List 1 imports from China.
List 1 Product Exclusion Details
- includes 310 product descriptions
- covers 724 separate requests
- retroactive to July 6, 2018
- remains in place through September 20, 2020
- use HTSUS subheading 9903.88.14
List 2
Effective August 23, 2018, the U.S. Trade Representative imposed additional duties on goods of China with an annual trade value of approximately $16 billion as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The U.S. Trade Representative’s determination included a decision to establish a product exclusion process. One prior exclusions announcement has been made.
List 2 Product Exclusion Details
- includes 89 product descriptions
- covers 400 separate requests
- retroactive to August 23, 3018
- remains in place through September 20, 2020
- use HTSUS subheading 9903.88.17
List 3
In September of 2018, the U.S. Trade Representative imposed additional duties on goods of China with an annual trade value of approximately $200 billion as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. An exclusion process for List 3 began in June 2019 and has recently been amended to create uniform beginning and expiration dates for the exclusions, which are listed below.
List 3 Product Exclusion Details
- includes 38 product descriptions
- covers 46 separate requests
- retroactive to September 24, 2018
- remains in place through August 7, 2020
- use HTSUS 9903.88.18
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.
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 review Section 301, visit this helpful Resource Page
To read more about Section 301, visit USTR.gov
Download each Section 301 List below:
[maxbutton id=”37″ url=”https://thescarbroughgroup.com/wp-content/uploads/2019/08/List_4A_Effective_September_1_2019.pdf” text=”View List 4a Effective Sept 1″ ]
[maxbutton id=”37″ url=”https://thescarbroughgroup.com/wp-content/uploads/2019/08/List_4B_Effective_December_15_2019.pdf” text=”View List 4b Effective Dec 15″ ]
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.
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