Reintroduction of Certain Chinese Customs Exclusions of USTR – International Law
Reintroduction of Certain Chinese Customs Exclusions of USTR – International Law

Reintroduction of Certain Chinese Customs Exclusions of USTR – International Law


United States: Reintroduction of certain Chinese tariff exclusions by the USTR

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On March 23, 2022, the Office of the US Trade Representative (USTR) announced its decision to renew tariff exemptions for 352 product categories (approximately two-thirds of the goods received previous exemptions) covered by the Article 301 tariffs on Chinese products. The reintroduced tariff exemptions will enter into force retroactively from 12 October 2021 to 31 December 2022.

The renewed duty exemptions cover a wide range of products, including car parts, engines, electrical equipment, chemicals, textiles, consumer electronics, electrical equipment, LED / LCD, bicycles, motorcycles, seafood, medical equipment, building materials, robots, bags, pillows and household items. . The renewed exemptions are available for any product that meets the description in the product exclusion, regardless of whether the specific importer has previously submitted an exclusion request to the USTR. A complete list of duty exemptions can be found here.

In a statement issued by the USTR last year, the USTR explained that the key factors and criteria to be considered in possible reinstatement decisions include (1) whether the particular product and / or a comparable product is available from sources in the US and / or or in third countries; (2) any changes in the global supply chain since September 2018 with respect to that product or any other relevant industrial development; (3) the effort, if any, importers or U.S. buyers have undertaken since September 2018 to pick up the product from the United States or third countries; and (4) domestic capacity to produce the product in the United States. The USTR also considered whether reintroducing the exclusion would affect or result in serious economic harm to the commentator or other U.S. interests, including the impact on small businesses, employment, manufacturing output, and critical supply chains.

At present, there is no indication from USTR that it will extend the list to other products that were previously included in now-expired exclusions or that have not previously been excluded. However, it is possible that Congress may force the USTR’s hand. The House and Senate have announced that they will set up a conference committee to negotiate proposed legislation that would potentially reintroduce more of the expired Section 301 exclusions and require the USTR to consider new exclusion requests for any product covered by Section 301- tariffs.

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