On December 26, the USTR announced that it is once again extending the only remaining exclusions from the Section 301 tariffs. The exclusions had been set to run through December 31, 2023, and will now run through May 31, 2024. The draft notice can be found here.
Which Exclusions Have Been Extended?
- 352 exclusions for consumer-related goods
The USTR again extended 352 additional exclusions which it had previously allowed to expire but had reinstated in September 2023. The exclusions cover a wide variety of consumer-related goods across Lists 1 – 4, including certain seafood (such as certain Alaskan sole, crab meat, frozen fillets of haddock, sole, and flounder), chemicals, pumps, electric motors, filtering equipment, and animal feeding machinery. A complete list of the 352 exclusions can be found in the Annex.
Significantly, the USTR’s reinstatement of these exclusions applies retroactively to October 21, 2021. This means that importers may request refunds of Section 301 tariffs paid on entries of these goods made after October 21, 2021, so long as the entries are not yet liquidated or are within 180 days of liquidation.
- 77 COVID-related exclusions
The USTR also extended 77 COVID and medical care-related exclusions covering products such as examination gloves, hand sanitizing wipes, and blood pressure monitors. The entire list can be found in the Annex here.
What Comes Next?
- Opportunity to comment on extending the exclusions beyond May 31
The USTR is accepting public comment on whether the exclusions should be extended beyond May 31, on an exclusion-by-exclusion basis. USTR will examine the availability of products covered by the exclusions from sources outside of China, efforts taken to source products covered by the exclusions from the U.S. or third countries, why additional time is needed, and on what timeline, if any, the sourcing of products covered by the exclusions is likely to shift outside of China. The USTR will also consider whether extending the exclusions will impact U.S. interests, including the overall impact of each exclusion on the goal of eliminating China’s acts, policies and practices covered in the Section 301 investigation giving rise to the tariffs.
The comment period will open on January 22 and close on February 21.
- Overall USTR review of Section 301 tariffs
The USTR has been conducting a four-year review (started in May 2022) as to whether the Section 301 tariffs should be continued to be imposed and/or modified, in whole or in part. While earlier in the year the USTR was widely expected to have completed this review by the end of 2023, there have now been reports that the USTR will not complete this review and issue its report until at least the first quarter of 2024. Although some news sources have reported that the Section 301 tariffs may be lifted on some products and/or that the process of applying for exclusions from the tariffs may be restarted, such reports are speculative at this time.
If you would like further information or assistance in filing comments on extension of the existing exclusions, requesting refunds for past entries or any other Section 301 tariff-related matter, please contact Jessica Rifkin (jrifkin@ofwlaw.com), Tom O’Donnell (todonnell@ofwlaw.com), Lara Austrins (laustrins@ofwlaw.com), or Denise Calle (dcalle@ofwlaw.com).
