Technical Correction Allows 301 Exclusion Refunds for Goods In Transit May-June 2019

The Office of the U.S. Trade Representative announced a technical correction that allows refunds for products exported after the tariffs were hiked from 10% to 25% but on the water at the time the increase was announced. The notice, set for Federal Register publication April 26, says goods that left China before May 10, 2019, and entered the U.S. before June 15, 2019, and are covered by a Section 301 exclusion, are now excluded.

"Published exclusions under the $200 billion action were to apply as of September 24, 2018, the effective date of the $200 billion action, and extend to August 7, 2020. However, the implementing language used in the exclusions notices did not include a reference to HTSUS heading 9903.88.09 and therefore did not have the effect of excluding products that were exported before May 10, 2019, and entered into the United States on or after May 10, 2019, and before June 15, 2019," the notice explains. There were 10 rounds of exclusions that were announced, from August 2019 to May 2020.