The U.S. Trade Representative (USTR) just announced that applications for exclusion from Section 301 List 3 tariffs will be accepted starting at noon on June 30, 2019. The last day to submit exclusion applications will be September 30, 2019.
Exclusions that are granted will be applied retroactively to September 24, 2018 (when the 10% duty was imposed) and will be in place for one year from the date when USTR publishes notice that the exclusion has been granted. To apply for an exclusion, importers will have to provide the information specified in the USTR’s procedures, including volumes of imported product, availability of non-Chinese sources of the product, and impact on their business from the increased tariffs. In addition, successful applications will need to tell a compelling story over and above the standard information requested by USTR.
Steps to Take with Customs Too
- Importers who are requesting exclusions can’t
stop with the USTR application. To protect their right to refunds on
entries made since the tariffs went into effect and while USTR is considering
the application, there are additional steps to take with Customs. It will be too
late if importers wait for the exclusion to be granted. - Importers who have products which may be covered
by a competitor’s application cannot just sit back and wait either. They will
want to monitor which requests are being filed and if one may apply to
their goods, then they should also take steps immediately with Customs to
preserve their potential right to refunds on entries made since the tariffs
went into effect and while the USTR is considering the competitor’s
application.
We are committed to providing the import community with information on tariffs impacting U.S. importers. If you are interested in filing exclusion applications, protecting your rights to refunds of paid duties, or exploring other possible ways to reduce or eliminate the effect of the tariffs, please contact us at contact@fdaimports.com.
