On June 20, 2019 the Office of the United States Trade Representative (“USTR”) announced an exclusion process for tariffs imposed on September 2018 (“List 3”) pursuant to the U.S. Section 301 action against China. This announcement was followed by a notice published in the Federal Register. Through this exclusion process, parties will be able to request that USTR exclude specific products from the twenty-five percent tariff currently scheduled to apply to List 3 products under the Harmonized Schedule. While exclusion rounds for Lists 1 and 2 are closed, the exclusion process for List 3 products will begin on June 30, 2019 and will be administered through an electronic portal available at https://exclusions.ustr.gov (portal will open on June 30, 2019). Copies of the exclusion forms are currently available online so interested parties can begin reviewing the necessary forms.
Background on Section 301 Tariffs
A Section 301 investigation, conducted by USTR, revealed that numerous unreasonable or discriminatory Chinese laws and practices relating to technology transfer, intellectual property, and innovation are adversely affecting U.S. businesses. The investigation found that: