close
Share with your friends

U.S. imports from China, products excluded from Section 301 action

U.S. imports from China, products excluded, Section 301

The Office of the U.S. Trade Representative (USTR) today released a notice for publication in the Federal Register that provides a list of imports from China that are not subject to the 25% additional customs duty pursuant to the action relating to Section 301 of the Trade Act of 1974—that is, a list of product exclusions.

1000

Related content

The USTR notice [PDF 450 KB] states that the product exclusions will apply as of July 6, 2018, and that this list will apply for one year after April 18, 2019 (the date of publication of this notice).

An annex to today’s USTR notice lists the exclusions in 21 specially prepared product descriptions, covering 348 separate exclusion requests. The exclusions are available for any product that meets the description in the annex, regardless of whether the importer filed an exclusion request. Also, the scope of each exclusion is governed by the scope of the product descriptions in the annex to the USTR notice, and not by the product descriptions set out in any particular request for exclusion.

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

Background

The USTR effective July 6, 2018, imposed additional duties at a customs duty rate of 25% on goods of China with an annual trade value of approximately $34 billion pursuant to the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The USTR initiated an exclusion process in July 2018, and stakeholders were directed to submit requests for the Section 301 exclusion of specific products.

In December 2018 and March 2019, the USTR granted two prior sets (tranches) of exclusion requests. Today’s USTR notice announces that additional exclusion requests are granted. Further, the notice states that the USTR will continue to issue decisions on pending requests on a periodic basis.

Read a KPMG report that provides an overview of the Section 301 exclusions that apply for U.S. imports from China: TradeNewsFlash


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

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

© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.KPMG International Cooperative (“KPMG International”) is a Swiss entity.

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

Request for proposal