On December 26, 2023, the Office of the United States Trade Representative (USTR) announced a further extension of 429 product-specific exclusions from the China Section 301 Tariffs through May 31, 2023.1 The USTR first reinstated 352 exclusions in March 20222 through year-end 2022, and then in December 2022 through September 30, 2023.3 Several months later, in May 2023, the USTR decided to also extend 77 COVID-related exclusions through September 30, 2023. Most recently, in September 2023, the USTR extended both the reinstated and COVID-related exclusions through December 31, 2023, to allow for consideration under its four-year review of the List 1 and List Section 301 tariffs.4
The USTR stated that this latest extension is to allow time "to seek comments on whether to further extend any of the 429 product specific exclusions."5 This decision was based upon public comments previously submitted, as well as advice of both advisory and the interagency Section 301 committees. The USTR has indicated the focus of their evaluation "will be on the availability of products covered by the exclusion from sources outside of China, efforts undertaken to source products covered by the exclusion from the United States or third countries, why additional time is needed, and on what timeline, if any, the sourcing of products covered by exclusion is likely to shift outside of China."6 The USTR will also consider "whether or not extending the exclusion will impact U.S. interests, including the overall impact of the exclusion on the goal of obtaining the elimination of China's acts, policies and practices covered in the Section 301 investigation."7
The USTR has opened a docket for public comments on whether to further extend particular exclusions. The public docket is available at USTR's website: https://comments.ustr.gov/. Comments must be submitted by February 21, 2024, at 11:59 p.m. ET. The USTR has indicated that it will evaluate each exclusion on a case-by-case basis. Interested persons seeking to comment on more than one exclusion must submit a separate comment for each.
Additional information on the 77 COVID Exclusions and the Reinstatement of Certain Exclusions Previously Extended can be found at USTR's website.8
Footnotes
1. Office of the United States Trade Representative, USTR Extends Exclusions from China Section 301 Tariffs to Allow for Comments on a Review of the Exclusions and Alignment with Four-Year Review, https://ustr.gov/about-us/policy-offices/press-office/press-releases/2023/december/ustr-extends-exclusions-china-section-301-tariffs-allow-comments-review-exclusions-and-alignment#:~:text=WASHINGTON%20%E2%80%93%20The%20Office%20of%20the,expire%20on%20December%2031%2C%202023 (Dec. 26, 2023).
5. Fed. Reg. Vol 88, No. 249, Friday, December 29, 2023.
6. Id.
7. Id.
8. See https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-china-technology-transfer/china-section-301-tariff-actions-and-exclusion-process/covid-exclusions; https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-china-technology-transfer/china-section-301-tariff-actions-and-exclusion-process/reinstatement-certain-exclusions-previously-extended.
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