In connection with USTR's four-year review of the Section 301 tariffs on products from the People's Republic of China (China), the President requested USTR to develop a process for parties to request temporary exclusions from the 301 tariffs for particular machinery used in domestic manufacturing classified within a subheading under Chapters 84 and 85 of the of the Harmonized Tariff Schedule of the United States (HTSUS). On May 28, 2024, the Office of the U.S. Trade Representative (USTR) announced it would establish such an exclusion process and requested comments on the eligibility of certain HTSUS subheadings.
Today, USTR published a notice containing additional information regarding the proposed Section 301 machinery tariff exclusion process. USTR states that the process will involve three stages: an exclusion request, an objection, and a rebuttal to the objection. There will also be an opportunity for third parties to voice support for a requested exclusion. Further information concerning the timeline for each submission and the opening date of the exclusion process is not available at this time, but USTR's notice is an indication that it will likely open within the coming months.
In an annex to today's notice, USTR also outlines the substance of its exclusion request, objection, and rebuttal forms, giving interested parties an insight into the types of arguments USTR will consider in determining whether to grant or reject a request. The substance addressed by each form is similar. Generally speaking, requesters must identify a specific 10-digit HTSUS heading, describe the good in question, state whether it is subject to antidumping or countervailing duties, indicate whether it will be used for domestic manufacturing, state whether it would be purchased using federal funding (e.g., IRA or CHIPS Act grants), and describe the supply chain for the product. Parties will then present arguments and information concerning the availability of the product from U.S. or third country sources, and the relevance of the product to Chinese industrial policy initiatives such as "Made in China 2025."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.