Sec. 301 Duties: How to Benefit from an Exclusion

There have been a lot of questions regarding Sec. 301 duties, and how they apply (or not) to our clients' import products. A comprehensive list of all tariff numbers subject to the various tariff actions known as Lists 1-4 can be viewed here. Lately, there has been a big push for companies to see if their products will be eligible for an official exclusion from these additional costs. We have tried to summarize the main points below regarding the current state of these exclusions and how to go about applying for one if you choose.  

Exclusions have already been granted for any/all products classified under the following HTS#'s:

1. 8412.21.0075 --  Certain Hydraulic power engines and motors
2. 8418.69.0120 --  Self-contained drinking water coolers
3. 8480.71.8045 --  Injection molds for rubber & plastics 
4. 8482.10.5044 --  Radial bearings, 9mm to <30mm
5. 8482.10.5048 --  Radial bearings, 30mm to <52mm
6. 8482.10.5052 --  Radial bearings,  52mm to <100mm
7. 8525.60.1010 --  CB Radio transceivers

Additional exclusions (~2500) that have been granted are available to all importers, but the item description must match the scope definition. In other words, just because an item is classified in the same HTS# as one of these other exclusions does not mean it is automatically eligible for exclusion. As of June 2019, here is a list synopsis prepared by one legal firm focused on International Trade Law.

The exclusion request period for goods covered under List 1 & 2 is now closed. Exclusion requests for goods covered under List 3 are still being accepted by the US Trade Representative's office. A list of the exclusion requests (3400+ so far) for goods covered under List 3 that have been received so far can be found here. Interested parties have until Sept 30, 2019 to file their request for exclusion. Goods under the newly announced List 4 are not currently eligible for exclusion, and likely will not be unless the duty rates are raised to the full 25% level.

It is our recommendation that you consider engaging the services of an experienced and knowledgeable trade law firm to help prepare your exclusion request. The details for filing an exclusion can be found here.

Any exclusions granted will have an effective date back to the beginning of the trade action, so refunds of all previously-paid duties will be possible, with interest. If your goods are eligible for the exclusion, please advise your Averitt International associate so future duties can be avoided, and a process for refunding duties already paid can be added to a refund request submission.