Hundreds of China Tariff Exclusions Now Expired; First Sale Can Help Mitigate Effects
Source
American Shipper
Post Date
08/10/2020
More than 700 products imported from China became subject to the Section 301 additional 25 percent tariff when their exclusions expired Aug. 7. While exclusions were exted for more than 250 other goods, those extensions are only valid through Dec. 31. Importers of affected goods should consider using the first sale rule to mitigate the impact of these tariffs. Tariff Exclusion Decisions The Office of the U.S. Trade Representative considered exting 14 sets of tariff exclusions covering nearly 1,000 List 3 goods from China. However, USTR has declined to ext most of these exclusions, meaning those goods are now subject to the 25 percent tariff.
USTR did approve extensions of 266 exclusions, including 21 individual HTSUS numbers and 245 specifically-described products. These exclusions, which must be claimed using new HTSUS 9903.88.55, are available for any product that meets the specified product description (see attached notice), 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 6,700 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.
