Today (October 8, 2021), the Office of the United States Trade Representative (USTR) posted in the Federal Register a request from the industry for comments on previously excluded 301 tariffs from China. The USTR subsequently extended 549 exclusions from the four tranche lists. Most of these extensions expired by December 31, 2020, and the remaining ones expired earlier this year. The USTR invites specific comments on whether to reinstate particular product exclusions.
How to provide your comments to USTR
On October 12, 2021, at 12:01 a.m. EST you will be able to access the web portal at https://comments.USTR.gov, on the possible reinstatement of particular exclusions. On December 1, 2021, at 11:59 p.m. EST the portal will be closed for public comments.
Please note, that parties seeking to comment on more than one exclusion must submit a separate comment for each exclusion. USTR’s portal allows for the submission of Business Confidential Information (BCI). Fields with a (BCI) notation are for BCI and the information entered will not be publicly available.
What to expect after you submit comments
The USTR will evaluate the possible reinstatement of each exclusion on a case-by-case basis. The focus of the evaluation will be whether, despite the imposition of additional duties beginning in September 2018, the particular product remains available only from China.
When submitting comments, submissions should specifically address:
- Whether the particular product and/or a comparable product is available from sources in the US and/or in third countries.
- Any changes in the global supply chain since September 2018 with respect to the particular product or any other relevant industry developments.
- The efforts, if any, the importers or US purchasers have undertaken since September 2018 to source the product from the US or third countries.
- Domestic capacity for producing the product in the US.
Also please consider the appropriate length of the reinstated exclusions for which you will provide comments.
Additionally, the USTR will consider: whether or not reinstating the exclusion will impact or result in severe economic harm to the commenter or other US interests, including the impact on small businesses, employment, manufacturing output, and critical supply chains within the US, as well as the overall impact of the exclusions on the goal of obtaining the elimination of China’s acts, policies, and practices covered in the Section 301 investigation.
USTR will seek advice and consult with the agencies that make up the interagency Section 301 Committee, including the Small Business Administration. Exclusions reinstated pursuant to this review would be retroactive with respect to merchandise entered, or withdrawn from the warehouse, for consumption on or after the opening of the docket on October 12, 2021, for which the entries are not liquidated at the time the claim to apply the reinstated exclusion is made to U.S. Customs and Border Protection in accordance with their procedures.
This notice does not open any new exclusions, but it does take the step for the USTR to listen to the industry on the impact the additional duties have had on their business and their customers.
The opportunity to be heard is now. If you have any additional questions please feel free to reach out to me.
