On December 23, 2020, the US Trade Representative (USTR) posted on its website an advance copy of a notice of product exclusion extensions and additional modifications to be published in the Federal Register. In prior notices, the USTR modified the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation by excluding from additional duties certain medical-care products needed to address the COVID-19 outbreak. On March 25, 2020, the USTR sought public comment on additional modifications in this investigation in order to address COVID-19. This notice announces the USTR’s determination to extend certain product exclusions and to make further modifications to remove Section 301 duties from additional medical-care products to address COVID-19. DATES: The product exclusion extensions announced in this notice will extend the exclusions through March 31, 2021. The modifications to exclude additional products will apply as of January 1, 2021 until March 31, 2021. U.S. Customs and Border Protection (CBP) will issue instructions on entry guidance and implementation.
Throughout the exclusion process, USTR assessed medical necessity in granting exclusions, consistent with its published criteria. In addition, the USTR, in consultation with the Department of Health and Human Services (HHS), prioritized the review and exclusion of requests addressing medical-care products related to the US response to COVID-19. See 85 FR 13970 (March 10, 2020), 85 FR 15015 (March 16, 2020), and 85 FR 15244 (March 17, 2020). These exclusions covered personal protective equipment products and other medical-care related products.
In light of the rising spread and ongoing efforts to combat COVID-19, the USTR has determined that maintaining or re-imposing additional duties on certain products subject to the action no longer is appropriate and that the application of additional duties to these products could impact US preparedness to address COVID-19. The USTR has determined to extend certain product exclusions on medical-care products and to remove the duties from additional medical-care products. The medical-care products covered by this determination are set out in the annexes to this notice. In light of the evolving nature of the battle against COVID-19, the USTR has determined to extend the exclusions in the annexes until March 31, 2021, and the modifications will be effective from January 1, 2021, to March 31, 2021. The USTR may consider further extensions and/or additional modifications as appropriate. The USTR’s determination also takes into account advice from advisory committees and any public comment.
The exclusions and modifications are available for any product that meets the description in the Annexes. Further, the scope of each exclusion and modification is governed by the scope of the ten-digit Harmonized Tariff Schedule of the United States (HTSUS) subheadings and product descriptions in the annexes to this notice.
Annex A
- Paragraph A 1. modifies , subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) by inserting a new heading 9903.88.62.
- Paragraph A 2. creates a new U.S. note 20(ooo) covering 24 products.
- Paragraphs A 3-5 make conforming amendments.
- Paragraph B deletes the exclusion for certain inoculator sets of plastics that is provided for in heading 9903.88.06 and U.S. note 20(i)(32) to subchapter III of chapter 99, HTSUS.
Annex B
- Paragraph a. modifies , subchapter III of chapter 99 of the HTSUS by inserting a new heading 9903.88.63.
- Paragraph b. creates a new US note 20(ppp) covering 10 subheadings or products.
- Paragraphs c.d. and e. make conforming amendments.
Annex C
- Paragraph 1. modifies , subchapter III of chapter 99 of the HTSUS by inserting a new heading 9903.88.64.
- Paragraph 2. creates a new U.S. note 20(qqq) covering 35 subheadings or products.
- Paragraphs 3-5 make conforming amendments.
Annex D
- Paragraph 1. modifies , subchapter III of chapter 99 of theHTSUS by inserting a new heading 9903.88.65.
- Paragraph 2. creates a new U.S. note 20(rrr) covering 30 subheadings or products.
- Paragraphs 3-5 make conforming amendments.
Annex E provides tables for informational purposes only.
- Table A contains a list of the original exclusions and corresponding Chapter 99 Heading and Note 20 Subdivision for the first extension and the current extension. Additionally, the table indicates which Annex to this notice the extension appears.
- Table B contains a list of new products excluded from Section 301 duties.
