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New Process for Reinstating Section 301 Tariff Exclusions

USTR is accepting comments using the comment form through the submission portal starting Oct. 12. Comments are due Dec. 1.

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The United States Trade Representative (USTR) has announced a new targeted exclusions process for Section 301 tariffs on imports from China. The new exclusion process is limited in scope and only covers 549 exclusions that had been previously granted and extended but have now expired.

USTR is accepting comments, either in support or in opposition to reinstating an exclusion, using the comment form through the submission portal starting Oct. 12. Comments are due Dec. 1.

Additional information can be found in the links below: 

USTR Federal Register Notice Announcement

List of 549 Exclusions Eligible for Possible Reinstatement

USTR Press Release

Exclusion Reinstatement Comment Form

USTR Comments Submission Portal

USTR will evaluate the possible reinstatement of each exclusion on a case-by case basis. The focus of the evaluation will be whether, despite the imposition of additional duties beginning in September 2018, the particular product remains available only from China. In addressing this factor, commenters should address specifically: 

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  • Whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries.
  • Any changes in the global supply chain since September 2018 with respect to the particular product or any other relevant industry developments.
  • The efforts, if any, the importers or U.S. purchasers have undertaken since September 2018 to source the product from the United States or third countries.
  • Domestic capacity for producing the product in the United States.

In addition, USTR will consider whether or not reinstating the exclusion will impact or result in severe economic harm to the commenter or other U.S. interests, including the impact on small businesses, employment, manufacturing output, and critical supply chains in the United States, as well as the overall impact of the exclusions on the goal of obtaining the elimination of China’s acts, policies, and practices covered in the Section 301 investigation.

At this time, USTR has not provided any indications on expanding the exclusion process for products not included on the list of 549 products.

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