Jul 08

Section 301 List 1 Batch 6 Product Exclusions Extended

The rest expire July 9, 2020

The United States Trade Representative (USTR) has announced it will extend exclusions on Section 301 List 1 Batch 6 imports from China on 12 products until December 31, 2020. The rest of the products with previous exclusions granted will expire on July 9, 2020. The original exclusion list was published on July 9, 2019 with some amendments published December 17, 2019. The exclusions originally were reflected in 110 specially prepared product descriptions, which covered 362 separate exclusion requests.

Product Exclusions Extended Include:

These products are available for any product that meets the specified product description, regardless of whether the importer filed an exclusion request and should be claimed with HTS number 9903.88.52.

direct acting and spring return pneumatic actuators, each rated at a maximum pressure of 10 bar and valued over $68 but not over $72 per unit (8412.39.0080)
pump casings and bodies; pump covers; and pump parts, of plastics, each valued not over $3 (8413.91.9080 prior to Jan. 1, 2019; 8413.91.9095 Jan. 1 – Dec. 31, 2019; and 8413.91.9085 or 8413.91.9096 effective Jan. 1, 2020)
compressors, other than screw type, used in air conditioning equipment in motor vehicles, each valued over $88 but not over $92 per unit (8414.30.8030)
structural components for industrial furnaces (8514.90.8000)
aluminum electrolytic capacitors, each valued not over $3.20 (8532.22.0085)
rotary switches, rated at over 5 A, measuring not more than 5.5 cm by 5.0 cm by 3.4 cm, each with 2 to 8 spade terminals and an actuator shaft with D-shaped cross section (8536.50.9025)
rotary switches, single pole, single throw (SPST), rated at over 5 A, each measuring not more than 14.6 cm by 8.9 cm by 14.1 cm (8536.50.9025)
zinc anodes for use with machines and apparatus for electroplating, electrolysis, or electrophoresis (8543.30.9080)
weather station sets, each consisting of a monitoring display and outdoor weather sensors, having a transmission range of not over 140 m and valued not over $50 per set (9015.80.8080)
multi-leaf collimators of radiotherapy systems based on the use of X-ray (9022.90.6000)

Background

On August 18, 2017, The United States Trade Representative initiated an investigation into certain acts, policies and practices of the Government of China related to technology transfer, intellectual property and innovation (82 FR 40213). During the investigation, the Trade Representative determined that the acts, policies and practices of China under investigation are unreasonable or discriminatory and burden or restrict U.S. commerce, and are thus actionable under Section 301(b) of the Trade Act of 1974, as amended (Trade Act).

In response, President Trump initiated a number of actions which imposed ad valorem tariffs on certain imports originating in China.

List 1

List 1, effective July 6, 2018 places an additional duty rate of 25% on $34 billion worth of goods from China. Several product exclusions have been announced. List 1 Product Exclusions Fact Sheet

List 2

List 2, effective August 23, 2018 places an additional duty rate of 25% on $16 billion worth of goods from China. Several product exclusions have been announced. List 2 Product Exclusions Fact Sheet

List 3

List 3, effective September 24, 2018 places an additional 10% on $200 billion worth of goods from China, and an increase up to 25% of these goods was imposed on June 15, 2019. Several product exclusions have been announced.
The jump from 25% to 30% on List 1, 2, and 3 was canceled on October 15, 2019. List 3 Product Exclusions Fact Sheet

List 4

List 4a went into effect on ~~September 1, 2019 at 15%~~. Tariffs for this list decreased to 7.5% effective February 14, 2020. Product exclusions have been announced. List 4 Product Exclusions Fact Sheet.
List 4b was originally scheduled for December 15, 2019 with a 15% ad valorem duty rate, but has been canceled due to a Phase One Trade deal between U.S. and China.

What to do

Scarbrough Consulting, Inc. is offering a free 30-minute consultation to any company that may be affected by the Section 301 announcements. Please send an email to consulting@scarbrough-intl.com or fill out the form below. Our Global Trade Experts and Licensed Customs brokers are here to help.

Consulting Request

Other ways to Learn More about Duty Savings

If the Section 301 tariffs are affecting your company, watch this webinar recording to learn more. Scarbrough’s President and COO, Adam Hill, along with Patrick Caulfield, an attorney at GDLSK, an international trade and customs law firm, talk about legal opportunities to recover or avoid paying duty to CBP. This is an interactive webinar set up as a question/answer forum.

About Scarbrough

Scarbrough Global of Companies, headquartered in Kansas City with local presence in every major port in the world, is a complete international and domestic supply chain service provider, offering U.S., Mexican, and Canadian Customs brokerage, Import & Export Transportation Solutions, Domestic brokerage and asset-based trucking, Warehouse fulfillment and distribution services, Trade Compliance Consulting, Large Equipment and Project Cargo moves, as well as Parcel Audit Savings. Scarbrough is widely known for its trade experts, training, personalized customer service, and customized solutions. Since 1984, Scarbrough has continued to satisfy its clients by following its motto on a daily basis: “It is our job to make your job easier.” Moreover, our team of experts is available at your disposal. We offer free consultations on any topic from supply chain optimization and duty savings opportunities to the basics, helping to guide new importers and exporters as they jump into the world of global trade. Contact us now.