Section 301 exclusion process

Section 301 Exclusion Requests: Information and Resources

This page will provide you with background on the section 301 tariffs and information regarding the process to apply for an exclusion on goods affected by the tariffs imposed during rounds 3 and 4a. The deadline to file an exclusion application for any List 4a products is January 31, 2020. The deadline to file exclusion requests for List 3 products expired on September 30, 2019.

 

Background on Section 301 Tariffs

The United States Trade Representative (USTR) has phased-in several tariff increases on nearly all goods imported from China over the course of the last year and half. These tariff increases have moved in four primary phases. Below is a quick summary of these stages and how they relate to our industry:

On January 15, 2020, the United States and China signed a “Phase One” trade deal. Tariffs on products in Lists 1, 2, and 3 will remain at 25% increase above normal rates. Tariffs on products in List 4a will be reduced from 15% above regular rates to 7.5% above regular rates, effective Feb. 14, 2020.

While these tariffs have had a devastating effect on our industry, the USTR has created an exclusion process that companies and trade associations can utilize to request that USTR remove certain goods from the list of products that are subject to these tariffs. The process to request an exclusion for products listed in Round 4a is currently open and closes on January 31, 2020.

 

Exclusions that have been granted

USTR has already granted several product exclusions that apply to bicycle products. Importers of products that are subject to an exclusion are eligible to be reimbursed for Section 301 tariffs that have already been paid and avoid future Section 301 duties.

Below is a running list of successful exclusion requests, with links to the official USTR documentation that controls the scope of the exclusion:

  • Complete bicycles with wheels smaller than 20 inches imported under Harmonized Tariff Schedule heading 8712.00.1510. Click here to see the USTR exclusion document (page 6, line 1).
  • Complete bicycles with 20 inch wheels imported under Harmonized Tariff Schedule heading 8712.00.1520. Click here to see the USTR exclusion document (page 69,014, line 9).
  • Complete bicycles with wheels larger than 20 inches, but smaller than 26 inches, imported under Harmonized Tariff Schedule heading 8712.00.1550. Click here to see the USTR exclusion document (page 6, line 2).
  • Carbon fiber bicycle frames valued at $600 or less imported under Harmonized Tariff Schedule heading 8714.91.3000. Click here to see the USTR exclusion document (page 57,807, line 69).
  • Single-speed bicycles imported under Harmonized Tariff Schedule heading 8712.00.2500. Click here to see the USTR exclusion document (page 49,596, line 33).
  • Single-speed bicycle imported under Harmonized Tariff Schedule heading 8712.00.4400. Click here to see the USTR exclusion document (page 65,884, line 18).
  • Certain bicycles (as specified in USTR documentation) imported under Harmonized Tariff Schedule heading 8712.00.2500. Click here to see the USTR exclusion document (page 65,884, line 17).
  • Certain wired bicycle computers (as specified in USTR documentation) imported under Harmonized Tariff Schedule heading 9029.20.2000. Click here to see the USTR exclusion documentation (page 61,676, line 21).
  • Certain bicycle saddles imported under Harmonized Tariff Schedule heading 8714.95.0000. Click here to see the USTR exclusion document (page 10, line 57).
  • Certain bicycle pumps imported under Harmonized Tariff Schedule heading 8414.20.0000. Click here to see the USTR exclusion document (page 8, line 36).

 

Exclusion for electric bicycles

In addition to these bicycle-specific exclusions, Customs and Border Protection has ruled that electric bicycles are eligible for an exclusion for electric motorcycles that was issued on Sept. 20, 2019. The initial exclusion for electric motorcycles can be viewed here. The two rulings from Customs that address e-bikes are available at the following links:

 

Pending exclusion requests

To view pending exclusion requests for both List 3 and List 4a products, visit the USTR’s exclusion website. You can search by product name, Harmonized Tariff Schedule heading, requestor name, or the request identification number.

 

Criteria USTR Evaluates for Exclusion Applications

When evaluating these applications, USTR will be examining several core criteria:

  • The ten digit Harmonized Tariff Schedule item number associated with the product.
  • A complete and detailed description of the product.
  • Whether the product can be sourced from the United States or other countries outside of China and attempts that have been made to do so.
  • Whether the tariff increase that has been imposed on the product has resulted in severe economic harm to your company or other interests in the U.S.
  • Whether the product is strategically important to Chinese industrial programs, including “Made in China 2025.”

In addition to these factors, applicants must provide detailed import and revenue data. These criteria are similar, though not identical, to the processes used to review exclusion applications in previous rounds.

 

Web Portal for Filing Applications

In addition, the procedure to file an application differs slightly from previous tariff rounds. The U.S. Trade Representative (USTR) has created a dedicated portal for organizations to register and file their applications at https://exclusions.ustr.gov/. You can see the specific instructions for filing a request at the links below:

  • List 3 exclusion request instructions, here.
  • List 4a exclusion request instructions, here.

 

Questions?

Depending on your specific circumstances, the exclusion process may be a viable path for tariff relief for your business. We of course encourage you to consult with your legal counsel and trade experts to best assess your options for utilizing this process.

Please contact Alex Logemann ([email protected]) with any questions about the Section 301 exclusion process.