On August 2, 2019, the Office of the U.S. Trade Representative (USTR) issued its first batch of Section 301 product exclusions for imported Chinese products appearing on List 3. These products, which have an annual trade value of approximately $200 billion, have been subject to Section 301 tariffs since September 24, 2018. The USTR determined that 10 specific products will be excluded from the tariffs, covering 15 separate exclusion requests: (1) certain container units of plastics; (2) certain injection molded polypropylene plastic caps or lids; (3) certain kayak paddles; (4) high tenacity polyester yarn not over 600 decitex; (5) certain nonwovens; (6) pet cages of steel; (7) certain carts used for household shopping; (8) certain truck trailer skirt brackets; (9) certain inflatable boats; and (10) certain inflatable kayaks and canoes.

These exclusions were issued shortly after the USTR established in its June 24 Federal Register notice a product exclusion process for List 3 products covered by Section 301 tariffs (see Trump and Trade Update of June 20). The exclusions apply to any product that satisfies the description in the annex of the August 2 notice, regardless of whether the company using the exclusion filed the request. The exclusions apply retroactively to September 24, 2018, and will extend for one year after publication of the August 2 notice. U.S. Customs and Border Protection will soon issue instructions on entry guidance and implementation. USTR will continue to issue determinations on pending requests on a periodic basis.