The Office of the U.S. Trade Representative (“USTR”) announced that starting on October 31, 2019, the exclusion process for Chinese imports subject to List 4 Section 301 tariffs of 15% will open and will conclude on January 31, 2020.

Details on the specifics of the application process are to be published in the Federal Register during the week of October 21, 2019, however, it is expected that the exclusion request process will be similar to the one instituted for List 3 and are to be submitted via USTR’s portal at exclusions.ustr.gov.  To be eligible for an exclusion, an importer must demonstrate that (a) there is an insufficient supply from U.S. sources; (b) the additional duties have caused severe economic harm; and (c) the imported good is not identified on the “Made in China 2025” list.  Exclusion requests are specific to products imported at the HTSUS 10-digit level and any request must clearly and succinctly identify the physical characteristics such that U.S. Customs can administer the exclusion.

USTR originally announced on August 6, 2019, that it would institute additional tariffs of 10% on approximately $250 billion dollars of imports from China identified on List 4A , but on August 26, 2019, it announced that the tariff rate would increase to 15% due to ongoing tensions and forestalled trade negotiations.  Tariffs were originally delayed on certain goods and the additional 15% tariff goes into effect on December 15, 2019, for imports on List 4B. Importers should review both List 4A and 4B to identify and ensure that goods that it is importing are properly monitored.  For any importer interested in submitting an exclusion request, please contact Husch Blackwell’s International Trade and Supply Chain Team.

We will continue to monitor this situation and will provide future updates as developments occur. Please contact Husch Blackwell’s International Trade and Supply Chain team for more information.

 

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
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 Cortney Morgan Cortney Morgan

An experienced attorney in the area of international trade and supply chain issues, Cortney advises foreign and domestic clients on all aspects of international trade regulation, planning and compliance, including import (customs), export controls, economic sanctions, embargoes, international trade agreements and preference programs.

Photo of Turner Kim Turner Kim

A trade analyst, Turner conducts industry research and analyzes trade data to assist attorneys with client proceedings at the U.S. International Trade Commission, U.S. Department of Commerce and U.S. Court of International Trade. He also actively monitors U.S. government and global trade developments…

A trade analyst, Turner conducts industry research and analyzes trade data to assist attorneys with client proceedings at the U.S. International Trade Commission, U.S. Department of Commerce and U.S. Court of International Trade. He also actively monitors U.S. government and global trade developments for issues relating to client’s most critical trade matters.