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Update On The China 301 Product Exclusion Process

USTR has been opening a process for extension requests approximately two months before the tranche of exclusions ends.

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From MEMA

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The U.S. Trade Representative (USTR) has developed a process for extending exclusions on tariffs for up to 12 months. The process allows companies to either support or oppose extending a granted exclusion before it expires. The dates for the exclusion extension process are dependent upon the date the exclusion was published in the Federal Register, and any extensions granted will be for one year.

Beginning in December 2018, USTR issued exclusions from Sec. 301 tariffs on a rolling basis. For exclusions granted on products on List 1 ($34 billion) and List 2 ($16 billion), the exclusion expires one year from date of publication in the Federal Register. For exclusions granted on products on List 3 ($200 billion), the exclusion ends on Aug. 7, 2020.

Since October, USTR has been considering extension requests for exclusions from List 1. Of the exclusions granted, only a small percentage of the original exclusions are being extended.  

USTR has been opening a process for extension requests approximately two months before the tranche of exclusions ends. Requests for comments to extend exclusions and notices for extensions are posted on USTR’s webpage. Each period to support or oppose extensions has been a month from publication. 

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To date, extensions have been granted for products included on List 1. The first exclusions from List 2 were published in the Federal Register on July 31, 2019. If USTR allows an extension process for List 2, MEMA expects the first request for comment to open in late May based on the timeframe they have used for previous extensions.

The most recent exclusion extensions were granted on April 10, which applied to exclusions expiring on April 18, 2020, can be found here.

In addition to granting extensions on expiring exclusions, USTR is continuing to process exclusion requests for List 3, with the most recent tranche published in the Federal Register on April 22, 2020. The final exclusions for List 2 were published on Feb. 25, 2020.

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