NEMA Urges ‘Transparent’ New Section 301 Tariff Exclusions Process

No "open process" currently exists to apply for exclusions from the Section 301 tariffs on imports from China, commented the National Electrical Manufacturers Association Wednesday in docket 332-591 in the International Trade Commission’s Tariff Act Section 332 investigation into the economic impact of the Chinese tariffs on U.S. industries (see 2208260034). A report to Congress on ITC's findings is due by March 15. The exclusions process USTR had in place from 2018 to 2020, plus a subsequent window to request exclusions for a narrow list of products in 2021, were “not transparent,” said NEMA, citing a GAO report in July that faulted USTR for failure to “fully document its procedures for internal decision-making” on the tariff exclusions. NEMA member companies “found the exclusions process to be capricious and difficult to navigate,” said the association. A new, fair and transparent exclusions process “is needed to provide tariff relief, especially for components and materials used in domestic manufacturing,” said NEMA. Leaving the Section 301 tariffs in place with no possible exemptions creates “significant challenges, costs, and uncertainty for U.S. businesses,” it said. “Providing relief from these tariffs will assist companies as they reorient supply chains, manage inflationary pressures, and aid in the nation’s infrastructure improvement.” USTR didn’t comment.