September 19, 2018

Tariff List-3 of Section 301 and The Exclusion Request Process

Effective September 24,2018, all products on the attached list will be subject to an additional 10% rate of duty. This duty rate will remain at 10% for the rest of the year and will increase to 25% beginning on January 1, 2019.


Attached a link to the USTR’s press release


We strongly recommend you review your supply chain for items that are on the list.

If your tariff number is on the list or you need additional information, please reach out to us. We are happy to assist you with your questions and concerns.

Regarding the exclusion request process for the items on the first list, requests must be filed by October 9, 2018.  Any exclusions granted will be retroactive to July 6th. The Federal Register notice includes the following requirements for submissions:
• 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. USTR will not consider requests that identify the product at issue in terms of the identity of the producer, importer, ultimate consumer, actual use or chief use, or trademarks or tradenames. USTR will not consider requests that identify the product using criteria that cannot be made available to the public.

• The 10 digit subheading of the HTSUS most applicable to the particular product requested for exclusion.

• Requestors also may submit information on the ability of U.S. Customs and Border Protection to administer the exclusion.

• Requestors must provide the annual quantity and value of the Chinese-origin product that the requestor purchased in each of the last three years. For trade association requestors, please provide such information based on your members’ data. If precise annual quantity and value information is not available, please provide an estimate and explain the basis for the estimation. With regard to the rationale for the requested exclusion, each request for exclusion should address the following factors:

• Whether the particular product is available only from China. In addressing this factor, requestors 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 requestor or other U.S. interests.
• Whether the particular product is strategically important or related to ‘‘Made in China 2025’’ or other Chinese industrial programs
The Notice also states that the USTR office prefers requests to be submitted electronically.  It also provides the following instructions on submission:
To submit requests via www.regulations.gov, enter document ID number USTR–2018–0025–0001 on the home page and click ‘‘search.’’ The site will provide a search-results page listing the Federal Register Notice associated with this docket. Find a reference to this notice and click on the link titled ‘‘comment now!’’. Once posted on the electronic docket, the exclusion request will be viewable in the ‘‘primary documents’’ section.
The Federal Register Notice for the first list can be accessed at the following:
If you have questions on either of these developments, please contact our office and we would be happy to discuss these further.