On May 6, 2020, the Office of the U.S. Trade Representative (USTR) released a Federal Register notice seeking public comment on whether extensions for up to 12 months should be granted for particular products that have received exclusions in the China Section 301 process from the 25 percent tariffs on imports from China with an annual trade value of $200 billion (List/Tranche 3). These product exclusions were listed in 11 Federal Register notices:
- 84 Fed. Reg. 38717 (August 7, 2019) – see Trump and Trade Update of August 5, 2019
- 84 Fed. Reg. 49591 (September 20, 2019) – see Trump and Trade Update of October 3, 2019
- 84 Fed. Reg. 57803 (October 29, 2019) – see Trump and Trade Update of October 24, 2019
- 84 Fed. Reg. 61674 (November 13, 2019) – see Trump and Trade Update of November 8, 2019
- 84 Fed. Reg. 65882 (November 29, 2019) – see Trump and Trade Update of November 26, 2020
- 84 Fed. Reg. 69012 (December 17, 2019) – see Trump and Trade Update of December 16, 2020
- 85 Fed. Reg. 549 (January 6, 2020) – see Trump and Trade Update of January 2, 2020
- 85 Fed. Reg. 6674 (February 5, 2020) – see Trump and Trade Update of February 3, 2020
- 84 Fed. Reg. 9921 (February 20, 2020) – see Trump and Trade Update of February 19, 2020
- 85 Fed. Reg. 15015 (March 16, 2020) – see Trump and Trade Update of March 15, 2020
- 85 Fed. Reg. 17158 (March 26, 2020) – see Trump and Trade Update of March 23, 2020
At this time, the USTR is not considering product exclusion Federal Register notices issued after March 26, 2020. All of the exclusions in the listed Federal Register notices are set to expire on August 7, 2020.
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 August 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 August 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.
The USTR is seeking public comments from interested parties on whether to extend any particular exclusion for up to 12 months. The period for comment runs from May 1, 2020 until June 8, 2020. Comments must be submitted on the public docket on USTR’s web portal at https://comments.USTR.gov under Docket No. USTR-2020-0015 – “Section 301 – China $200 Billion Trade Action (List 3) Comments Concerning the Extension of Particular Exclusions Granted Under the August 2019 through March 2020 Product Exclusion Notices”. New users will first have to create an account in order to submit comments. For parties wishing to include Business Confidential Information (BCI), the USTR notes that such information will not be publicly available when comments are posted on the docket. Parties may also upload supporting documents that can also be marked as public or BCI.