Market Updates

Section 301: Nov 30 is the last day to file for List 1 exclusion extensions

The Section 301 Product Exclusions granted for List 1 ($34 billion) are set to expire on December 28, 2019. The last day to file an extension request is November 30.

 

Background

Effective July 6, 2018, the U.S. Trade Representative (USTR) imposed additional 25% duties on goods from China classified in 818 8-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), with an approximate annual trade value of $34 billion (See 83 FR 28710).

In December 2018, the USTR granted an initial set of exclusion requests (See 83 FR 67463). These exclusions are set to expire on December 28, 2019.

 

Extensions Considered

USTR is considering extending exclusions granted in the December 2018 notice for up to twelve months. Extension requests will be evaluated on a case-by-case basis. 

The focus of the evaluation will be whether, despite the first imposition of these additional duties in July 2018, the particular product remains available only from China.

If you are requesting an extension, make sure to address these key subject areas in your comment:

  • Whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries.
  • Any changes in the global supply chain since July 2018 with respect to the particular product, or any other relevant industry developments.
  • The efforts, if any, the importers or U.S. purchasers have undertaken since July 2018 to source the product from the United States or third countries.

USTR will also consider whether the imposition of additional duties on the products covered by the exclusion will result in severe economic harm to the commenter or other U.S. interests.

At this time, USTR is not considering possible extensions of exclusions granted under any other product exclusion notice.

 

How to Request an Extension

To request an extension, commenters are strongly encouraged to complete Form A and submit it through http://www.regulations.gov. The docket number is USTR-2019-0019

 

Conclusion

November 30, 2019 is the last day to file an extension request for List 1 Product Exclusions, which will expire on December 28, 2019. 

If you have any questions or would like more information, please contact Shannon Dillinger at s.dillinger@shipUWL.com or 440-895-8212. 

 

 

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