Nearly one hundred products imported from China will become subject to the Section 301 additional 25 percent tariff on List 1 and List 2 goods when their exclusions expire Sept. 20. Exclusions are being exted for some products but only through Dec. 31. Importers of goods that will now be subject to this tariff should consider using the first sale rule to mitigate its impact. Tariff Exclusion Decisions The Office of the U.S. Trade Representative considered exting tariff exclusions covering 178 List 1 and List 2 goods from China. However, USTR has declined to ext 99 of these exclusions, meaning those goods will be subject to the 25 percent tariff as of Sept. 20. USTR did approve extensions of 62 List 1 exclusions and 17 List 2 exclusions. These exclusions, which must be claimed using new HTSUS 9903.88.58 (List 1) or 9903.88.59 (List 2), are available for any product that meets the specified product description, regardless of whether the importer filed an exclusion request. However, while USTR said it would consider exting these exclusions for up to 12 months, it ultimately only exted them through Dec. 31. USTR states that this shortened extension is due to ˇ°the cumulative effect of current and possible future exclusions or extensions of exclusions on the effectiveness ofˇ± the Section 301 tariffs. USTR explains that it has granted more than 6,800 exclusion requests to date, has exted some of these exclusions, and may consider further extensions. USTR states that it will take account of the cumulative effect of exclusions in considering the possible further extension of these and other exclusions.
