Section 301 Tariffs: Are They Finally Over or Not?
After years of costly retaliatory duties, the era of Section 301 tariffs on Chinese goods may soon come to a close.
The United States Trade Representative (USTR) released a notice asking if any companies that benefited from Section 301 tariffs would like them to continue. According to a USTR release, the tariffs would end July 6, 2022, if no companies request continuation.
If the tariffs are allowed to end, numerous Chinese imports would immediately be available with significantly lower duties. Plus, it would end a major component in the US-China trade war. The Trump Administration originally initiated Section 301 tariffs on Chinese goods in 2018. Importers have paid high costs to import from China since – apart from a list of specific products deemed essential to American safety and economic health.
Unfortunately, there are still more questions than answers. One can only speculate how a potential end to the Section 301 tariffs may play out. Will there be an opportunity for retroactive refunds through the post-summary correction (PSC) or protest process? We will need to wait and see. But this is an opportune time to ensure your compliance house is in order. Contact Scarbrough Consulting to plan a tariff compliance review and ensure your import operation is prepared for potential changes.