May 13

Section 301 List 4 Batch 4 Product Exclusions

On May 13, 2020, The United States Trade Representative granted the fourth list of product exclusions for Section 301 List 4 products. The exclusions as set out in the Annex are reflected in three 10-digit HTSUS subheadings and five specially prepared product descriptions covering 27 separate exclusion requests.

Exclusions will be retroactive to September 1, 2019 and will remain effective until September 1, 2020. The exclusions are available for any product that meets the description in the Annex, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the 10-digit HTSUS subheading as described in the Annex, and not by the product descriptions set out in any particular request for exclusion. The exclusions comprise of different medical supplies, and were most likely pushed due to the coronavirus outbreak.

The exclusions include:

3306.20.0000
6506.10.6030
8512.10.4000
Disposable identification wristbands of plastics, designed to be worn by patients during medical procedures, each consisting of a plastics strip with an integrated window for inserting paper with relevant patient identification information, such bracelets measuring 0.95 cm or more but not more than 3.2 cm in width and having a secure closure (3926.90.9990)
Tracking devices, each device measuring not more than 86 mm on a side (if rectangular) or 28 mm in diameter (if circular) and not more than 7.5 mm in thickness, not weighing more than 15 g, designed to be attached to another article and to establish a Bluetooth connection with another device for the purposes of providing relative location information (8517.62.0090)
Wireless communication apparatus capable of receiving audio data to be distributed to wireless speakers (8517.62.0090)

Update on March 26, 2020

The United States Trade Representative has made additional modifications to the original release. The following products will no longer be valid for product exclusions, which were originally located on the above list:

Tumblers or disposable graduated liners for pitchers, of plastics, of a kind used in healthcare facilities (3924.10.4000)
Manually operated pill or tablet crushers of plastics, presented with attachable pouches of plastics for capturing and storing the resulting powders (8479.82.0080)

Background

On August 18, 2017, USTR 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. Four separate lists have been announced. To view the most up to date information, check out our debriefing on Section 301 Imports from China. This post indicates effective dates, duty rates, and more.

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

Scarbrough is offering a FREE 30-minute consultation to any importer affected by the Section 301 Tariffs. Email consulting@scarbrough-intl.com or fill out the form below.

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.