Changes in Section 301 Exclusions: Is Your Tariff Exemption Extended? - Sobel Network Shipping Co., Inc.

Changes in Section 301 Exclusions: Is Your Tariff Exemption Extended?

Starting June 15, importers of hundreds of goods from China will face increased costs as the Biden administration has chosen not to renew Section 301 tariff exclusions for these products. However, exclusions for over 150 other items will be extended for another year.

The Office of the U.S. Trade Representative (USTR) has announced that all current exclusions, which include 352 covering various products and 77 for medical care products, will be extended through June 14. These exclusions apply to any product that matches the specified HTSUS numbers and descriptions, regardless of whether the importer initially requested an exclusion.

Beyond that date, USTR will continue tariff exclusions for only 164 products, listed in Annex C of the notice, through May 31, 2025. The remaining exclusions will expire on June 14, and the goods will then be subject to the applicable Section 301 tariffs.

Additionally, USTR is accepting comments through June 28 on a proposal that includes: (1) increasing some existing Section 301 tariffs on imports from China, (2) extending those tariffs to additional products, (3) establishing an exclusion process for specific machinery used in domestic manufacturing to be temporarily excluded from tariffs until May 31, 2025, and (4) granting 19 temporary exclusions for specific solar manufacturing equipment until May 31, 2025.