The Office of the U.S. Trade Representative (USTR) announced a process for obtaining product exclusions from the additional tariff of 25% on certain products imported from China under the “Section 301” tariff provisions.
Previously, it was announced that the USTR would establish a process by which U.S. stakeholders could request that particular products be excluded from the additional Section 301 duties and that the USTR would publish a separate notice concerning the product exclusion process. Read TradeNewsFlash
As noted in the USTR release, a request to exclude a particular product from the additional duties would be intended to address situations that warrant excluding a particular product within a subheading, but not the tariff subheading as a whole.
A USTR notice [PDF 256 KB]—expected to be published this week in the Federal Register—outlines the criteria and process for a product exclusion request. In making its determination on each request, the USTR may consider whether a product is available from a source outside of China, whether the additional duties would cause severe economic harm to the requestor or other U.S. interests, and whether the particular product is strategically important or related to Chinese industrial programs. The exclusion process has the following important dates and features:
Because exclusions will be made on a product basis, a particular exclusion will apply to all imports of the product—regardless of whether the importer filed a request. U.S. Customs and Border Protection will apply the tariff exclusions based on the product.
For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:
Partner, Global Practice Leader
Partner, National Practice Leader
John L. McLoughlin
Principal, East Coast Leader
Luis (Lou) Abad
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