4 June 2019
Less than a Quarter of List 1 Mainland China Tariff Exclusion Requests Approved to Date
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 gets ready to launch an exclusion request process for List 3 goods, which are worth about US$200 billion.
Information from USTR indicates that of the 10,830 requests submitted for exclusions from the 25 percent additional tariff on List 1 goods, as of 31 May USTR had denied 6,291 (up from 6,005 on 10 May), accounting for 58.1 percent of all petitions filed as well as 72.2 percent of all petitions adjudicated to date, and granted 2,421 (up from 1,957), accounting for 22.4 percent of all petitions filed as well as 27.8 percent of all petitions adjudicated to date. 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, 21 are under-going an initial review of whether the request should be granted based on specified criteria (down from 365) and 2,097 are being reviewed with U.S. Customs and Border Protection to determine whether the exclusion would be administrable (down from 2,510). No comments are still being accepted on any List 1 request.
With respect to List 2 goods, USTR has denied 1,259 of the 2,920 exclusion requests received (up from 956) but has not approved any. Comments are being accepted on one request (down from two requests), 81 are under-going substantive review (down from 384) and 1,579 (up from 1,577) are being reviewed for administrability.
Meanwhile, USTR is expected to issue later this month a notice formally launching a process for requesting exclusions from the Section 301 additional tariff on List 3 goods,