The Office of the U.S. Trade Representative (USTR) has issued a Federal Register notice seeking public comment on the possible extension of Section 301 tariff exclusions for certain products that it granted on June 4, 2019, in the ongoing trade dispute with China. These exclusions were in the fifth batch of exclusions granted as part of the first round of Section 301 tariffs placed on imports of Chinese goods with an annual trade value of approximately $34 billion (List/Tranche 1 products). These exclusions (see Trump and Trade Update of June 4, 2019) are scheduled to expire on June 4, 2020. This batch of exclusions included one full HTS subheading and 88 partial exclusions under an HTSUS subheading as further defined in specially prepared product descriptions. The USTR is considering a possible extension of up to 12 months for these exclusions and seeks public comment on whether to extend particular ones.
The USTR states that it will evaluate the possible extension of each exclusion on a case-by-case basis. The focus of the evaluation will be “whether, despite the first imposition of these additional duties in July 2018, the particular product remains available only from China.” These issues should be addressed in submitting any comments:
- Whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries.
- Any changes in the global supply chain since July 2018 as to the particular product, or any other relevant industry developments.
- The efforts, if any, the importers or U.S. purchasers have undertaken since July 2018 to source the product from the United States or third countries.
- The USTR notes that it will continue to consider whether the imposition of additional duties on the products covered by the exclusion will result in severe economic harm to the commenter or other U.S. interests.
Comments will be accepted between April 1 and April 30, 2020. All submissions must be made electronically via the www.regulations.gov portal on Docket Number USTR-2020-0013. The USTR strongly recommends that those wishing to comment complete Exclusion Extension Comment: Form A, which will be posted on the public docket. Importers and purchasers may also submit Exclusion Extension Comment: Form B containing business confidential information via email to firstname.lastname@example.org, which will not be made available to the public. If filing a Form B, parties, the USTR notes, must also file a public Form A.
The USTR is considering the possible extension of product exclusions only for those exclusions granted in June 2019; no other extensions under any other product exclusion notices issued by the USTR will be considered.