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More Mainland China Tariff Exclusion Requests Denied as USTR Prepares for List 3 Process

Hundreds more requests for exclusions from the Section 301 additional tariffs on imports from mainland China have recently been denied but many remain under consideration. The Office of the U.S. Trade Representative is continuing to review exclusion requests for List 1 and List 2 goods, imports of which are collectively worth about US$50 billion, as it prepares to launch an exclusion request process for List 3 goods, which are worth about US$200 billion.

Information from USTR indicates that of the 10,837 requests submitted for exclusions from the 25 percent additional tariff on List 1 goods, as of 10 May USTR had denied 6,005 (up from 5,311 on 26 April) and granted 1,957 (up from 1,441). Approved exclusions are available for any product that meets the specific product description, regardless of whether the importer filed an exclusion request. In addition, the scope of each exclusion is governed by the scope of the 10-digit subheading or the specific product description to which it applies, not by the product descriptions set out in any particular request.

Of the remaining List 1 exclusion requests, 365 are under-going an initial review of whether the request should be granted based on specified criteria (down from 1,081) and 2,510 are being reviewed with U.S. Customs and Border Protection to determine whether the exclusion would be administrable (down from 3,001). No comments are still being accepted on any List 1 request.

With respect to List 2 goods, USTR has denied 956 of the 2,931 exclusion requests received but has not approved any. Comments are being accepted on two requests, 384 are under-going substantive review (down from 1,347) and 1,577 (unchanged) are being reviewed for administrability.

Meanwhile, USTR has announced plans to initiate a process for requesting exclusions from the Section 301 additional tariff on List 3 goods, which increased from 10 percent to 25 percent as of 10 May. A notice outlining that process is expected to be published in the near future.

Content provided by Picture: HKTDC Research
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