On July 9, 2019, the Office of the USTR published in the Federal Register a notice of product exclusions from the imposition of additional duties on goods of China with an annual trade value of approximately $34 billion (the $34 billion action) 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. USTR initiated the exclusion process in July 2018, and stakeholders have submitted requests for the exclusion of specific products. In December 2018, March 2019, April 2019, May 2019, and June 2019, USTR granted exclusion requests. This notice announces USTR’s determination to grant additional exclusion requests, as specified in the Annex to the notice. USTR will continue to issue decisions on pending requests on a periodic basis. The product exclusions announced in this notice will apply as of the July 6, 2018 effective date of the $34 billion action, and will extend for one year after the publication of this notice. US Customs and Border Protection (CBP) will issue instructions on entry guidance and implementation.
The exclusions (represented by new HTSUS subheading 9903.88.11) are reflected in 110 specially prepared product descriptions, which cover 362 separate exclusion requests. The exclusions are available for any product that meets the description in the Annex to the notice, 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 the notice, and not by the product descriptions set out in any particular request for exclusion. The Annex is divided as follows:
- Paragraph A, subparagraphs (3)–(5) are conforming amendments to the HTSUS reflecting the modification made by the Annex to this notice.
- Paragraph B of the Annex to the notice modifies U.S. note 20(k)(26) to subchapter III of chapter 99 of the HTSUS, as set out in the Annex of the notice published at 84 Fed. Reg. 21389 (May 14, 2019).
- In order to clarify the periodic revisions to the HTSUS, paragraph C of the Annex modifies the text to U.S. note 20(m)(27) to subchapter III of chapter 99 of the HTSUS, as set out in the Annex of the notice published at 84 Fed. Reg. 25895 (June 4, 2019).
- Paragraphs D and E of the Annex to the notice correct a typographical error in U.S. notes 20(m)(53) and 20(m)(54) to subchapter III of chapter 99 of the HTSUS, as set out in the Annex of the notice published at 84 Fed. Reg. 25895 (June 4, 2019).