USTR Extends Section 301 Exclusions into the New Year

Dec. 27, 2023
By: Hannah B. Kreinik

The U.S. Trade Representative (“USTR”) has extended COVID-related exclusions under Section 301, otherwise popularly known as the “China tariffs.” The same exclusions were extended back in September 2023 through to the end of the year. Now, the USTR has extended these exclusions to May 31, 2024.

The China tariff exclusions for COVID-related goods were initially implemented in late 2020. These COVID-related exclusions have been previously extended over the years following the Covid pandemic (you can find our report on the most recent extension here). The Covid-related exclusions that have been extended into the new year can be located under HTSUS Chapter 99, U.S. Notes 20(ttt)(i), (ii), (iii), and (iv) as well as U.S. note 20(uuu)(i), (ii), (iii), and (iv). Examples of some of the products covered include, but are not limited to: centrifugal pumps, filtering or purifying machinery, electric motors (not exceeding 16W), other DC and AC motors, switches for motor vehicles, hand pumps, blood pressure monitors, starter motors for internal combustion engines, vacuum cleaners, electric gear motors, sewing machines, DC blowers for use in motor vehicle climate control systems, certain cable hooks of steel, parts of child safety seats, liquid crystal display modules (“LCD”), insulated electric conductors for a voltage not exceeding 1,000 V, and certain printed circuit assemblies. Receiving a Section 301 exclusion results in a reduction of the tariffs owed for products covered under said exclusion.

In addition to extending these exclusions, the USTR is also opening a public comment docket on January 22, 2024. The public docket portal will accept comments until February 21, 2024. Comments should focus on whether the Covid-related exclusions should be extended beyond May 31, 2024.

The attorneys at Barnes, Richardson & Colburn are here to help. If you or your company would like to submit a comment for extending the exclusions or believe your products may fall within the extended exclusions, please contact us today.