TradeCritical

Section 301 Trade Remedies (Chinese Goods)

List 1 Product Exclusions 

  • 7 tariff numbers & 24 specific product descriptions have received one year exclusions, applicable to all importers.
    • The exclusions are retroactive to July 6th, 2018
    • Due to the government shutdown, CBP is unable to provide ACE programming updates. We are instructed to continue “business as normal” until such time as the programming can be completed, and instructions issued.
    • View list of exclusions here; note that this list is not binding on any party.
  • Read the ST&R release here.
  • Read the CBP notice here.
  • No inquiries will be answered on this matter; clients affected by the retroactive exclusions will be notified in due course, subject to the above CBP issue.

 

List 3 Assessment Increase Postponement

  • As of Jan. 1st, 2019, the List 3 assessment will remain at 10%, instead of increasing to 25%.
  • The complete Federal Register notice can be viewed here.
  • The delay will expire on March 1st, 2019, with the 10% rate increasing to 25% on March 2nd, 2019.
  • Official CBP notice of delay 12/20/18

 

WHAT IS IT?

An additional duty assessment, on top of any existing duty,  on certain Chinese products, by Presidential order.

  • Combined list of all products subject to additional duty under Lists 1, 2 and 3 Published by STR Trade
    • LIST 1 – This list comprises all goods subject to 25% additional duty effective 07/06/18.
    • LIST 2 – This list comprises a second round of tariff numbers subject to 25% additional duty effective 08/23/18.
    • LIST 3 -This list comprises a third round of tariff numbers, subject to an initial additional duty of 10% effective 09/24/18, and increasing to 25% on 03/02/19.

 

HOW DOES IT AFFECT ME?

  • Resources for determining if your goods are subject to Section 301 assessments, and how much the total duty is:
    • Tariff  Lookup: to look up duty rates, visit http://hts.usitc.gov and enter the first six digits of a tariff number (i.e. 8708.99) into the search box.
    • List 1-3 Lookup: Refer to the link above, and search for your tariff number on the list.
    • If the tariff is on a list, simply add the appropriate additional assessment to the column 1 tariff rate found in the Tariff Schedule for the total duty to be collected.
      • Example: Column 1 tariff rate for ceramic tile, 6907.21.1051, is 10%. The tariff is also found on List 3, which imposes an additional 10% prior to 03/02/19, for a total duty of 20%. After 03/01/19, the total duty would be (10% normal + 25% Sec 301) 35%.

 

CAN I GET AN EXEMPTION?

 

Not likely; however, petitions for exclusion can be submitted by filing a tariff exclusion request . Refer to the ST&R Trade link in the resources below for more information.

  • FgL is unable to assist with petitions.
  • Importers who obtain an exemption must provide their Customs broker with the exemption details. Failure to do so could jeapordize the ability to claim the exemption.

RESOURCES

COUNTRIES COVERED BY SECTION 301 IMPORT DUTIES:

  • CHINA

Updated 01/15/2019