Section 301 Duties Extended at Least During Review

Sep. 6, 2022
By: David G. Forgue

Many importers have been anxiously awaiting the fourth anniversary of the imposition of the Section 301 duties on products from China. Depending on the tranche this was July 6, 2022 or August 23, 2022. Under Section 301 there was some possibility that the duties would expire on their fourth anniversary. Hope springs eternal in the human breast.

On Friday, September 2 USTR issued a notice on its website and a draft Federal Register notice indicating that the agency had received sufficient responses from domestic industries saying they had benefitted from the 301 duties to leave them in place and conduct a legal review of the duties. This review will include a future notice creating a docket to receive comments regarding the effectiveness of the duties. For importers and companies that have found the 301 duties burdensome, this will be the opportunity to express those concerns. USTR did not indicate when those dockets would be opened.

In light of the larger geopolitical and trade issues plaguing the relationship between the United States and China, it seems unlikely that all Section 301 duties will be lifted. However, companies and industries with particularly strong arguments should ensure that they engage in the USTR process. It certainly seems possible that Section 301 could be modified in targeted ways.

If you have any questions about the future of Section 301 or how to manage 301 duties in your own business plese contact any Barnes, Richardson & Colburn attorney.