CHINA SECTION 301-TARIFF ACTIONS AND EXCLUSION PROCESS
There are options for handling these additional tariffs:
1. Apply for an exclusion;
Individual companies and trade associations may submit requests for exclusions. A request can only address one product(i.e. multiple requests would be submitted for each product). The request must include the following information:
- The ten-digit subheading of the HTS applicable to the exclusion request.
- Identification of the particular product “in terms of the physical characteristics (e.g., dimensions, material composition, or other characteristics) that distinguish it from other products within the covered 8-digit subheading.”
- The “annual quantity and value of the Chinese-origin product that the requester” or trade association purchased “in each of the last three years.”
- A certification that the information submitted is complete and correct.
In addition, each exclusion request “should address” the following factors:
Whether The Particular Product Is Available Only From China. In Addressing This Factor, Requesters Should Address Specifically Whether The Particular Product And/Or A Comparable Product Is Available From Sources In The United States And/Or In Third Countries.
Whether The Imposition Of Additional Duties On The Particular Product Would Cause Severe Economic Harm To The Requester Or Other U.S. Interests.
Whether The Particular Product Is Strategically Important Or Related To “Made In China 2025” Or Other Chinese Industrial Programs.
3. Import components for assembly in the U.S.
6. Shifting manufacture to a third country that would lead to “substantial transformation.”
7. Chapter 98 special classification in the HTSUS.
8. Valuation strategies such as assists.
*We will update this blog post based on further tariffs.