On April 18, 2019, the Office of the United States Trade Representative. (USTR) published in the Federal Register a notice of product exclusions. This is the third set of product exclusions from the first (July 6, 2018) imposition of 25% additional duties on goods of China with an annual trade value of approximately $34 billion as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. In December 2018 and March 2019, USTR granted two prior sets of exclusion requests. This notice announces USTR’s determination to grant additional exclusion requests, as specified in the Annex to this notice. USTR will continue to issue decisions on pending requests on a periodic basis.
As set out in the Annex to the notice, the exclusions are reflected in 21 specially prepared product descriptions, which cover 348 separate exclusion requests. In accordance with the July 11 notice, the exclusions are available for any product that meets the description in the Annex, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the product descriptions in the Annex to this notice, and not by the product descriptions set out in any particular request for exclusion.
Paragraph A, subparagraphs (3) – (5) are conforming amendments to the Harmonized Tariff Schedule of the United States (HTSUS) reflecting the modification made by the Annex to the notice. In order to clarify the periodic revisions to the HTSUS, paragraphs B and C of the Annex modifies the text to US notes 20(i)(6) and 20(i)(7) to subchapter III of chapter 99 5 of the HTSUS, as set out in the Annex of the notice published at 84 Fed. Reg. 11152 (March 25, 2019). Paragraph D of the Annex to this notice corrects a typographical error in US note 20(i)(24) to subchapter III of chapter 99 of the HTSUS, as set out in the Annex of the notice published at 84 Fed. Reg. 11152 (March 25, 2019).
As stated in the July 11 Notice, the exclusions will apply as of the July 6, 2018 effective date of the $34 billion action, and extend for one year after the publication of the notice of exclusions. US Customs and Border Protection (CBP) will issue instructions on entry guidance and implementation. Stakeholders wishing to check the status of their exclusion requests should check USTR’s Initial $34 Billion Trade Action Index of Product Exclusion Requests and Review Status spreadsheet, which is updated weekly.