USTR Announces Exclusion Request Process for Section 301 Tariffs on Machinery Imports from China
17 October 2024 04 MINS. Read USA
On October 15, 2024, the U.S. Trade Representative (USTR) announced an opening period to submit Section 301 China exclusion requests for specific machinery used in domestic manufacturing and classified under a list of Harmonized Tariff Schedule of the United States (HTSUS) subheadings in Annex E of this notice. The exclusion requests must be submitted in a portal and must identify the product with a detailed description including the 10-digit HTSUS number.
All exclusion requests must be submitted by March 31, 2025. The USTR’s office will evaluate each exclusion request and post the request on the portal. A response period of 30 days after the request is posted will allow comments on the exclusion request. The submitter of the exclusion request has 15 days after the response or 45 days after the request was posted to the portal to rebut those comments.
Exclusions granted will be effective on the date the determination is published in the Federal Register and extend through May 31, 2025.
A list of eligible subheadings is provided below.
FAQs
Who can submit a request?
Interested persons, including trade associations, may submit requests for temporary exclusion from the Section 301 tariffs.
What type of information is required?
Each request specifically must identify a particular product, and provide supporting data and the rationale for the requested exclusion.
- The 10-digit subheading of the HTSUS applicable to the manufacturing equipment requested for exclusion. If no 10-digit subheading is available (i.e., the 8-digit subheading does not contain breakouts at the 10-digit level), requesters should use the 8-digit subheading and add “00”.
- A complete and detailed description of the manufacturing equipment. A detailed description of the manufacturing equipment includes, but is not limited to, its physical characteristics (e.g., dimensions, weight, material composition, etc.), whether the manufacturing equipment is designed to function in or with a particular machine (application), the manufacturing equipment’s principal use, the unit value of the manufacturing equipment (please provide a range if necessary), and any unique physical features that distinguish it from other manufacturing equipment within the covered 10-digit HTSUS subheading. Requesters may attach images and specification sheets, CBP rulings, court decisions, and previous import documentation.
- Whether the manufacturing equipment of concern is subject to an antidumping or countervailing duty order issued by the U.S. Department of Commerce.
- Whether the manufacturing equipment will be used for domestic manufacturing, how the equipment will be used, and the manufacturing sector.
- If applicable, documents showing grant funding from, or grant application to, a federal investment program related to the domestic manufacturing at issue, such as the Inflation Reduction Act (IRA), CHIPS and Science Act, Build America Buy America (BABA), and Rural Energy for America Program (REAP).
- Whether the manufacturing equipment of concern, or comparable manufacturing equipment, is available from sources in the United States or third countries and any attempts of the requesting organization to source the manufacturing equipment from the United States or third countries.
- Whether the requesting organization has purchased the manufacturing equipment of concern from a source in the United States or in a third country in the past five years and why the manufacturing equipment is no longer available from this source.
- Whether the manufacturing equipment of concern is strategically important or related to “Made in China 2025” or other Chinese industrial programs.
How long will the exclusion be valid?
Any exclusion will be effective starting from the date of publication of the exclusion determination in the Federal Register and will extend through May 31, 2025. USTR is accepting exclusion requests on a rolling basis and will periodically announce decisions on pending requests.
What is the process?
- An exclusion request is submitted on the USTRs online portal
- Interested persons will have 30 days to respond, indicating support or opposition.
- After a response is posted, the requester will have the opportunity to reply to the response using the same portal. Any reply must be submitted within the later of 15 days after the posting of a response, or 15 days after the closing of the 30-day response period.
For additional information, please refer to the Federal Register Notice.
