USTR Announces Process for Requesting Exclusions From Section 301 Tariffs on China

The Office of the U.S. Trade Representative on July 6 announced procedures for requesting product exclusions from Section 301 tariffs on products from China, on the same day that the 25 percent tariffs took effect (see 1807060012). Exclusion requests will be due by Oct. 9, and if granted will apply retroactively starting from July 6. Exclusions will be made on a “product basis,” so “a particular exclusion will apply to all imports of the product, regardless of whether the importer filed a request,” USTR said.

In deciding whether to grant the exclusion, 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 including ‘Made in China 2025,’” it said. The agency will publish a notice in the Federal Register detailing the process next week.

Once a request is filed, the public will have 14 days to file responses to the exclusion request. After that 14-day period, “interested persons” will have seven days to reply to those responses. Exclusion requests, responses and replies will be submitted via regulations.gov. The Commerce Department’s process for Section 232 exclusions has received complaints of being slow and burdensome (see 1804190048 and 1805080026), though USTR will run the Section 301 process.