CHINA SECTION 301-TARIFF ACTIONS AND EXCLUSION PROCESS
$16 Billion Trade Action (List 2)
$200 Billion Trade Action (List 3)
$300 Billion Trade Action (List 4)
List 4 Has Not Released The Exclusion Process As Of Yet
There are options for handling these additional tariffs:
1. Apply for an exclusion;
Individual companies and trade associations may submit requests for exclusions. A request can only address one product(i.e. multiple requests would be submitted for each product). The request must include the following information:
- The ten-digit subheading of the HTS applicable to the exclusion request.
- Identification of the particular product “in terms of the physical characteristics (e.g., dimensions, material composition, or other characteristics) that distinguish it from other products within the covered 8-digit subheading.”
- The “annual quantity and value of the Chinese-origin product that the requester” or trade association purchased “in each of the last three years.”
- A certification that the information submitted is complete and correct.
In addition, each exclusion request “should address” the following factors:
Whether The Particular Product Is Available Only From China. In Addressing This Factor, Requesters Should Address Specifically Whether The Particular Product And/Or A Comparable Product Is Available From Sources In The United States And/Or In Third Countries.
Whether The Imposition Of Additional Duties On The Particular Product Would Cause Severe Economic Harm To The Requester Or Other U.S. Interests.
Whether The Particular Product Is Strategically Important Or Related To “Made In China 2025” Or Other Chinese Industrial Programs.
LIST 1:
Exclusions Granted December 28, 2018
Exclusions Granted March 25, 2019
Exclusions Granted April 18, 2019
Exclusions Granted May 14, 2019
Exclusions Granted June 4, 2019
Exclusions Granted July 9, 2019
Exclusions Granted September 20, 2019
Exclusions Granted October 2, 2019
LIST 2:
Exclusions Granted July 31, 2019
Exclusions Granted September 20, 2019
Exclusions Granted October 2, 2019
LIST 3:
Exclusions Granted August 7, 2019
Exclusions Granted September 20, 2019
or
2. Tariff Engineering.
3. Import components for assembly in the U.S.
4. Utilize the Bonded Warehouse or Foreign Trade Zone
5. Duty Drawback
6. Shifting manufacture to a third country that would lead to “substantial transformation.”
7. Chapter 98 special classification in the HTSUS.
8. Valuation strategies such as assists.
*We will update this blog post based on further tariffs.