On November 26, the Office of the U.S. Trade Representative (USTR) issued an important update affecting importers sourcing goods from China. USTR has officially extended the remaining product exclusions under the ongoing Section 301 Investigation into China’s technology transfer, intellectual property, and innovation practices.
These exclusions—covering 178 specific products—were previously set to expire on November 29, 2024. With this new update, all remaining exclusions have now been extended through November 10, 2026, providing importers with additional time and clarity as they plan their sourcing and duty-mitigation strategies.
What This Means for U.S. Importers
The extension offers continued relief for companies that rely on the covered products, including many in the manufacturing, technology, retail, consumer goods, and industrial supply sectors. Importers who qualify for these exclusions may continue to benefit from duty savings—often a significant advantage given the current landscape of global supply chain costs and market volatility.
The additional two-year window also gives importers more stability while ongoing discussions around U.S.–China trade policy continue.
Why USTR Extended the Exclusions
The Section 301 Investigation is part of the U.S. government’s broader strategy to respond to China’s unfair trade practices regarding technology and intellectual property. USTR regularly reviews exclusion lists to evaluate economic impact, domestic availability, and strategic considerations.
This latest extension suggests that:
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USTR acknowledges continued supply chain dependencies for certain products.
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Domestic alternatives may still be limited or in development.
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Stakeholders requested additional time and predictability as they adjust sourcing strategies.
Next Steps for Importers
Sobel Network recommends that importers take the following actions:
1. Confirm Whether Your Products Qualify
Review the latest USTR notice to determine whether your items fall under the 178 product exclusions that have been extended.
2. Update Internal Cost Models
Factor in continued duty relief through November 2026 when forecasting landed costs and setting pricing strategies.
3. Prepare Documentation
Ensure all classification, product specifications, and import records clearly support eligibility for exclusions, should CBP request verification.
4. Monitor Further USTR Announcements
The Section 301 program remains active, and future changes are possible. Companies should maintain ongoing compliance reviews and stay informed through reliable trade advisory sources.
Sobel Network Is Here to Help
Navigating Section 301 duties and exclusions can be complex, but you don’t have to manage it alone. Sobel Network provides expert guidance in:
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Tariff classification
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Section 301 exclusion eligibility reviews
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Compliance documentation
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Supply chain planning and cost-mitigation strategies
If you need support evaluating how this extension impacts your operations, our team is ready to assist.
