On Tuesday, May 21, 2019, USTR and the Office of Management and Budget (“OMB”) published in the Federal Register a request for comments on the Section 301 exclusion process for Tranche 3 tariffs which were increased from 10% to 25% on May 10, 2019. The notice also included a draft exclusion request form for the List 3 products. The draft exclusion request form includes more data requirements on U.S. and third-party sourcing, overall gross revenue, and on whether the company has applied for and/or received previous exclusion requests.

Interested parties can submit written comments and suggestions on the proposed product exclusion process until June 7, 2019 addressing one or more of the following four points:

(1) Whether the proposed information collection request is necessary for the proper performance of USTR’s functions, including whether the information will have practical utility.

(2) The accuracy of USTR’s estimate of the burden of the proposed information collection request, including the validity of the methodology and assumptions used.

(3) Ways to enhance the quality, utility, and clarity of the information collection request.

(4) Ways to minimize the burden of the information collection request on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology.

In the notice, USTR also signals its expectations for the number of potential product exclusion requests and comments on List 3, noting that it expects to start collecting exclusion applications on or around June 30, 2019, and that it anticipates receiving roughly 60,000 exclusion applications.

We will continue to monitor this situation closely. For more information on the Section 301 tariffs on China, please contact our International Trade and Supply Chain Group –  Jeffrey NeeleyNithya NagarajanCortney MorganRobert Stang, or Beau Jackson.

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Photo of Nithya Nagarajan Nithya Nagarajan

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory…

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory actions before the Department of Commerce, International Trade Commission and U.S. Customs and Border Protection (CBP) and defends clients in appeals before the Court of International Trade, Court of Appeals for the Federal Circuit, NAFTA panels and the World Trade Organization. In addition to her body of U.S. experience, Nithya is also well-versed in international trade issues in China and India.

Photo of Robert Stang Robert Stang

Bob focuses his practice on customs and international trade law. He brings 30 years of experience to a wide range of issues that affect inbound and outbound goods, including tariff classification, valuation, country of origin marking matters, free trade agreements, and special trade…

Bob focuses his practice on customs and international trade law. He brings 30 years of experience to a wide range of issues that affect inbound and outbound goods, including tariff classification, valuation, country of origin marking matters, free trade agreements, and special trade programs. He also has extensive customs compliance experience and regularly assists importers facing U.S. Customs and Border Protection (CBP) audits, penalties, seizures, redelivery notices and other agency enforcement activities. Bob works with importers and exporters proactively to achieve cost savings and structure programs that meet CBP “reasonable care” requirements. He also handles supply chain security issues, including Customs-Trade Partnership Against Terrorism (C-TPAT) enrollment, verification and annual reviews.

Photo of Katherine Stubblefield Katherine Stubblefield

 

Katherine is an International Trade Analyst who supports clients in international trade relief and regulation matters, including antidumping investigations, countervailing duties, export controls, economic sanctions, international trade agreements and preference programs.