Section 301 Exclusion Requests: Information and Resources

This page will provide you with background on the section 301 tariffs and information regarding tariff exclusions on goods affected by the tariffs imposed during rounds 2, 3 and 4a.

 

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 is currently closed. USTR is now considering whether to extend exclusions that have already been granted for List 3 products. The deadline to file a comment is June 8, 2020. Please read below for more information on the extension process.

 

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 bike-related product exclusion requests, with links to the official USTR documentation that controls the scope of the exclusion. For a comprehensive list of all product exclusions that have been granted, visit USTR’s exclusion webpage.

  • List 2 products (exclusion effective Aug. 23, 2018, exclusion expires Sept. 20, 2020):
    • Electric bicycles are eligible for an exclusion that applies to electric motorcycles. See section below for additional details.
  • List 3 products (exclusions effective Sept. 24, 2018, exclusions expire Aug. 7, 2020):
    • 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 550, 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 550, line 2).
    • Complete bicycles having both wheels exceeding 63.5 cm in diameter, weighing less than 16.3 kg complete without accessories and not designed for use with tires having a cross- sectional diameter exceeding 4.13 cm, multi-speed imported under Harmonized Tariff Schedule heading 8712.00.2500. Click here to see the USTR exclusion document (page 23,131, line 88).
    • 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 bicycles 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 bicycles with coaster brakes and fixed gearing (as specified in USTR documentation) imported under Harmonized Tariff Schedule heading 8712.00.3500. Click here to see the USTR exclusion document (page 6,683, line 88).
    • Certain bicycles with 3 speeds or less and coaster brakes (as specified in USTR documentation) imported under Harmonized Tariff Schedule heading 8712.00.3500. Click here to see the USTR exclusion document (page 6,683, line
    • Bicycles of aluminum having both wheels exceeding 25 cm but not exceeding 70 cm, each valued at less than $45 imported under Harmonized Tariff Schedule heading 8712.00.4800. Click here to see the USTR exclusion document (page 23,131, line 89).
    • Certain folding bicycles imported under Harmonized Tariff Schedule heading 8712.00.4800. Click here to see the USTR exclusion documentation (page 17,172, line 160).
    • 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).
    • Carbon fiber bicycle frame front triangles imported under Harmonized Tariff Schedule heading 8714.91.9000. Click here to see the USTR exclusion document (page 17, line 120).
    • Carbon fiber rear swing arms for bicycle frame front triangles imported under Harmonized Tariff Schedule heading 8714.91.9000. Click here to see the USTR exclusion document (page 17, line 121).
    • Bicycle wheel rims, each not less than 30 cm and not more than 75 cm in diameter imported under Harmonized Tariff Schedule heading 8714.92.1000. Click here to see the USTR exclusion document (page 23,131, line 90).
    • Bicycle wheel rims of aluminum, each not less than 451 mm and not more than 622 mm in diameter imported under Harmonized Tariff Schedule heading 8714.92.1000. Click here to see the USTR exclusion document (page 23,131, line 91).
    • Bicycle wheel rims, of carbon fiber, with outer reinforcement around nipple holes, each valued at least $100. Click here to see the USTR exclusion document (page 17, line 122).
    • 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 552, line 57).
    • Certain bicycle pumps imported under Harmonized Tariff Schedule heading 8414.20.0000. Click here to see the USTR exclusion document (page 552, line 36).
    • Certain bicycle tires imported under Harmonized Tariff Schedule heading 4011.50.0000. Click here to see the USTR exclusion document (page 6,678, line 28).
    • Certain bicycle trailers imported under Harmonized Tariff Schedule heading 8716.40.0000. Click here to see the USTR exclusion document (page 6,683, line 90).
    • Certain bicycle hitch racks imported under Harmonized Tariff Schedule heading 8708.99.8180. Click here to see the USTR exclusion documentation (page 17,172, line 158).
    • Certain digital electronic scales imported under Harmonized Tariff Schedule heading 8423.81.0040. Click here to see the USTR exclusion document (page 9923, line 24).
    • Certain messenger bags imported under Harmonized Tariff Schedule heading 4202.12.8130. Click here to see the USTR exclusion document (page 7, line 18).
    • Certain hydration packs imported under Harmonized Tariff Schedule heading 4202.92.0400. Click here to see the USTR exclusion document (page 7, line 19).
    • Certain backpacks imported under Harmonized Tariff Schedule heading 4202.92.3120. Click here to see the USTR exclusion document (page 7, line 20).
  • List 4a products (exclusions effective Sept. 1 2019, exclusion expire Sept. 1, 2020):
    • Bicycle helmets imported under Harmonized Tariff Schedule heading 6506.10.3045. Click here to see the USTR exclusion documentation (page 17,938, line 3).
    • Bicycle headlights imported under Harmonized Tariff Schedule heading 8512.10.2000. Click here to see the USTR exclusion documentation (page 17,938, line 4).
    • Certain protective goggles imported under Harmonized Tariff Schedule heading 9004.90.0000. Click here to see the USTR exclusion document (page 15,248, line 19).

 

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.

 

Exclusion Extension Process

USTR has now opened the process to file comments on whether to extends exclusion for List 3 items that have already been granted. Anyone may file a comment. Comments are filed on USTR’s exclusion website. To file a comment you must create an account and complete the required fields not the comment website. There are multiple comment periods open at any given time on USTR’s website – make sure you scroll down to the extension comment period for List 3 (August 2019 through March 2020 exclusion notices) when filing a comment. The deadline to file a comment in support of an exclusion extension for List 3 products is June 8, 2020.

Click here to see a copy of the extension comment questions in a downloadable word document.

 

Guidance from Customs and Border Protection (CBP) on Extending Deadline for Tariff Refunds

We encourage all brands to review this guidance from CBP pertaining to actions you can take to extend the the deadline during which you can claim a tariff refund. These will be particularly valuable if you have shipments that entered the country many months ago that contain products for which a List 3 exclusion request is still pending. We recommend you consult your legal counsel, customs broker, and other trade professional for advice on these matters.

 

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.