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U.S. notice, products from China excluded from additional 25% customs duty

U.S. notice of products from China, exclusion request

The Office of the U.S. Trade Representative (USTR) today released for publication in the Federal Register a notice of product exclusions reflecting the USTR’s determination to grant exclusion requests from the additional 25% customs duty on goods imported into the United States from China (pursuant to the investigation and action under Section 301 of the Trade Act of 1974).

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The USTR notice of product exclusion [PDF 308 KB] provides the USTR’s determination to grant certain exclusion requests (the excluded products are listed in an annex to this USTR notice) from imposition of the additional 25% customs duty. The USTR stated that decisions on pending requests on a periodic basis will continue to be issued. The product exclusions announced in today’s notice will apply as of an August 23, 2018 effective date, and will extend for one year after the publication of this notice (scheduled for July 31, 2019).

U.S. Customs and Border Protection will issue instructions on entry guidance and implementation.

Background

Effective July 6, 2018, the USTR imposed an additional 25% customs duty on goods of China classified in over 800 eight-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS).

Previously, requests for exclusion from the additional customs duty had to identify the product in such a manner as to distinguish the product from other products within the relevant eight-digit subheading covered by the Section 301 action. Those making requests for product exclusion had to provide the 10-digit subheading of the HTSUS most applicable to the particular product requested for exclusion, as well as to provide the quantity and value of the Chinese-origin product having been purchased in the last three years. The following factors had to be addressed in the request from exclusion:

  • Whether the particular product is available only from China and specifically whether the particular product and/or a comparable product is available from sources in the United States and/or 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 USTR previously has granted several sets of exclusions (see for example TradeNewsFlash discussing a June 2019 release).

 

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Managing Director
T: 202-533-3247
E: aahanchian@kpmg.com

Robert Waldrop
Principal
T: 212-954-8117
E: rwaldrop@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

 

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