The Office of the United States Trade Representative (USTR) recently announced the first set of product exclusions from Section 301 duties. These exclusions relate to items that were included in the first list (‘List 1’) of products enacted on July 6, 2018. Products in List 1 include many technology imports with a combined value of $34 billion.
Complete product exclusion information, including Harmonized Tariff System (HTS) numbers, may be found here.
The USTR has deemed the exclusions will apply to all imports regardless of applicant. The exclusions will cover imports retroactively to July 6, 2018, when List 1 products were initially assessed an additional 25% in Section 301 duties.
However, due to the ongoing partial U.S. government shut-down, U.S. Customs is unable to update its Automated Commercial Environment (ACE) system or to accept entry transmissions with the exclusion codes at this time. The required ACE updates are expected to be completed shortly after the government shut-down concludes. Until then, excluded products will continue to attract 25% Section 301 duties at time of import.
Once U.S. Customs updates its ACE system and provides further guidance, Section 301 duties paid on excluded products may be recovered through a Post Summary Correction (PSC) or Protest filing.
Importers should carefully review this information to determine if any opportunity exists for duty refunds under these exclusions.
Please contact your local Delmar representative or email our U.S. Customs Advisory Services Group for additional information and assistance.