China – U.S. Trade Update: List 4 to be Delayed; FAQs for List 3 Exclusion

Jul 1, 2019 | China, Customs and Trade, Imports, Law & Regulatory

President Trump announced on Saturday that proposed new tariffs on Chinese imports (aka List 4 goods) will be delayed as trade talks resume. Proposed goods on List 4 were to include most products not already covered by previous tariffs. The U.S. Trade Representative (USTR) had received written comments and held a public hearing on List 4 earlier in June on the proposal, which would have added $300 billion worth of goods to the tariffs.

While this certainly is good news for many importers, Jessica Rifkin, our affiliated Customs attorney, cautions, “List 4 hasn’t been permanently canceled – it’s only on hold, and it’s impossible to predict with any certainty whether these will ultimately go into effect.  Importers of List 4 goods should use this hiatus to explore their options if these tariffs are imposed.”

Exclusion Process for List 3

Yesterday, the exclusion process for List 3 opened. We recommend importers apply for exclusions and take steps with the U.S. Customs to protect their right to refunds should exclusions be granted.

USTR recently issued an FAQ
https://ustr.gov/sites/default/files/enforcement/301Investigations/%24200_Billion_Trade_Action_Exclusion_Process_FAQs.pdf to List 3 exclusions. There are some relatively new pieces of information:

  1. “Interested parties” will not be able to appeal the denial of an exclusion request, and all decisions on the exclusion applications are final;
  2. Even if an exclusion application has been submitted for a particular product by someone else, you can submit your own exclusion application for that same product (although if you know that a prior application has been submitted, USTR encourages you to comment on that prior application rather than submitting your own application);
  3. USTR will announce decisions whether exclusion requests have been granted via a letter to the applicant, and those decision letters will also be posted on the USTR Exclusions Portal;
  4. USTR will maintain an index on the USTR Exclusions Portal regarding the status of each request in the review process, which interested parties can monitor; and
  5. If the Section 301 tariffs are still in effect when the expiration deadline for when a  granted exclusion is drawing near, USTR will issue guidance in advance of the expiration date whether renewals are possible.

If you are interested in filing exclusion applications, protecting your rights to refunds of paid duties, or exploring other possible ways to reduce or eliminate the effect of the tariffs, please contact us at contact@fdaimports.com. 

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