USTR Initiates Section 301 Exclusion Process for Domestic Manufacturing Machinery

Oct 16, 2024 | NewsClient Alert

Today, the United States Trade Representative (USTR) announced modifications to the actions taken under the Section 301 investigation into China's practices related to technology transfer, intellectual property, and innovation. Among the changes are 14 temporary exclusions for solar manufacturing equipment and an exclusion process for select products imported under subheadings under Chapters 84 and 85 of the Harmonized Tariff Schedule. This new exclusion process is a significant opportunity for importers to receive temporary relief from the Section 301 tariffs.   

These actions follow the publication of a comprehensive report on the Section 301 investigation and a May 2024 Presidential Memorandum directing USTR to maintain and modify tariff rates on certain Chinese products. The memorandum also prioritized exclusions for solar manufacturing equipment and other machinery critical to domestic manufacturing.  

The new machinery exclusion process allows individuals and organizations to request exclusions from the Section 301 tariffs for certain imports under HTS Chapters 84 and 85 by providing detailed product descriptions and robust justifications. The list of eligible subheadings is included here starting on page 76590. Some subheadings include machinery for agriculture, food and beverage, textile, packaging, paper, metal, laser, milling, and printed circuits.  

The exclusion process opens today through March 31, 2025. After a product exclusion request is posted on the USTR's online portal, interested parties have 30 days to submit a response, either supporting or opposing the request. USTR will assess requests case-by-case, considering their impact on the investigation’s objectives and the U.S. economy, and will monitor the exclusions’ overall effectiveness in pressuring China to address its unfair trade practices. Approved exclusions go through May 31, 2025. 

The Michael Best Strategies trade team is ready to assist companies through the exclusion process. Please contact Sarah Helton, Michael Best Strategies’ Trade Practice Lead at sarah.helton@michaelbest.com

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