USTR Announces List 3 Exclusion Process

The USTR announced it will begin accepting exclusion requests for List 3 products subject to Section 301 duties assessed against China. The process will open on June 30, 2019 at noon Eastern Time. The final deadline for submitting applications will be September 30, 2019. The USTR notice is available here.

Approved exclusion requests will exempt List 3 products from Section 301 tariffs retroactively from the September 24, 2018 effective date until one year after the publication of the exclusion determination in the Federal Register.

The USTR will evaluate each request on a case-by-case, and will determine whether a specific product should be excluded based on: 1) the rationale of the exclusion, 2) whether the granting of the exclusion would undermine the objective of the Section 301 investigation, and 3) whether the request defines the product with sufficient precision.

The USTR will be using a new web portal and application form to collect submissions. Newly required information in the application includes, but is not limited to:

  • An expanded description of the product describing the product function, application, principal use, and any unique physical features that distinguish it from other products within the covered 10-digit HTSUS subheading.

  • Information regarding the requester’s gross revenues for 2018, the first quarter of 2018 and the first quarter of 2019, which will not be made public.

  • Applications must be supported with specific information as to whether a product is available only from China; whether a product is available from the U.S. or a third country; and whether the requester has attempted to source the products elsewhere.

  • An indication of whether the applicant has made prior applications for relief under Lists 1 or 2.

Like the process for List 1 and List 2 exclusions, applicants must also establish whether the products are critical to the “Made in China 2025” program and must establish the degree of economic harm to the applicant. All submissions must also provide a clear basis for the HTS subheading asserted for the product.

The application form with the full information required can be viewed here.

All applications will be open for public comment. Responses to individual requests are due 14 days after the application is posted. Replies to responses are due 7 days after the close of the 14-day response period, or 7 days after the posting of a response-whichever occurs later.

Should you require assistance to prepare or validate List 3 submissions prior to their submission to the USTR, please contact one of the trade professionals listed here.