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U.S. excluding Chinese products from “Section 301” tariff

U.S. excluding Chinese products from Section 301 tariff

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.

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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:

  • The public will have 90 days to file a request for a product exclusion; the request period will end 9 October 2018.
  • Following public posting of the filed request, the public will have 14 days to file responses to the request for product exclusion.  After the close of the 14-day response period, interested persons will have an additional seven days to reply to any responses received in support of or opposition to the request.
  • Exclusions will be effective for one year upon the publication of the exclusion determination in the Federal Register, and will apply retroactively to 6 July 2018.

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:

Doug Zuvich

Partner, Global Practice Leader

T: 312-665-1022

E: dzuvich@kpmg.com

 

Andy Siciliano

Partner, National Practice Leader

T: 631-425-6057

E: asiciliano@kpmg.com

 

Irina Vaysfeld

Principal

T: 212-872-2973

E: ivaysfeld@kpmg.com

 

Robert Waldrop

Principal

T: 212-954-8117 

E: rwaldrop@kpmg.com

 

Christopher Young

Principal

T: 312-665-3229

E: christopheryoung@kpmg.com

 

George Zaharatos

Principal

T: 404-222-3292

E: gzaharatos@kpmg.com

John L. McLoughlin

Principal, East Coast Leader

T: 267-256-2614

E: jlmcloughlin@kpmg.com

 

Luis (Lou) Abad

Principal, WNT

T: 212-954-3094

E: labad@kpmg.com

 

Amie Ahanchian

Managing Director

T: 202-533-3247

E: aahanchian@kpmg.com

 

Gisele Belotto

Managing Director

T: 305-913-2779

E: gbelotto@kpmg.com

 

Andy Doornaert

Managing Director

T: 313-230-3080

E: adoornaert@kpmg.com

 

Jessica Libby

Managing Director

T: 612-305-5533

E: jlibby@kpmg.com

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