Law & Order

U.S. Trade Representative Grants Tariff Exclusion Requests for Certain Products From China

By SEMA Washington, D.C., Staff

The U.S. Trade Representative (USTR) will exclude certain items from the 25% tariffs imposed on July 6, 2018, on $34 billion worth of products from China. The so-called List 1 tariffed products cover 818 Harmonized Tariff System code listings, including miscellaneous metal and rubber parts for auto equipment, machinery, tools, measurement and medical devices.  

The USTR has granted exclusion requests for 110 separate HTS code listings. They range from compression-ignition engines with maximum power within the 50–120 kW range to motor vehicle oil pump housings, plastic pump parts and certain steel valves along with a variety of non-auto-related products. View specific items here.

To be eligible for an exclusion, companies had to demonstrate that the product is available only from China, that the duties will cause severe economic harm and that the good is strategically important. The exclusions cover all imports under the HTS listing number, not just the request filed by an individual importer.  

In related news, the USTR has yet to begin reviewing exclusion requests for List 2 products valued at $16 billion. Tweny-five-percent tariffs were imposed August 23, 2018, and cover 279 HTS code listings, including many types of plastics.   

The USTR has just begun accepting exclusion requests for List 3 products imported from China. Requests must be submitted by September 30, 2019. Click here for additional information about List 3 extension requests. The List 3 group are subject to 25% tariffs and cover nearly $200 billion worth of products including many auto parts, from engines and metal fasteners to tires, transmission belts, brake pads and suspension springs.  

For more information, contact Stuart Gosswein at stuartg@sema.org.