Provisional China Tariff Exclusion
PROVISIONAL CHINA TARIFF EXCLUSION – Are your products Excluded?
The first list of China provisional tariffs was implemented in April of 2018 and more have come out since, adding anywhere between 7.5% and 25% duties to your products on top of the standard duty rate.
Despite recent world events, there is no indication China tariffs will go away. Instead, the administration has been focusing on offering targeted relief by way of granting exclusions.
Interested persons in the U.S. could submit Exclusion requests to the Office of the United States Trade Representative (www.USTR.gov) during the open period specified for each list. The deadline for the last of four rounds was on January 31, 2020. Once granted, exclusions are valid for one year beginning on the effective date for the implementation of the additional duties, and apply to all importers of that particular product. The approval process was based on the following factors:
- Whether the product is available only from China, and whether the company made any efforts to source the product from non-Chinese suppliers.
- Whether the imposition of additional duties on the product has or will cause severe economic harm to the requester or other US interests.
- Whether the particular product is strategically important or related to ‘‘Made in China 2025’’ or other Chinese industrial programs
Currently, the U.S. government has opened up a comment period under Federal Register Notice docket number USTR–2020–0014 to determine exclusion of additional medical-care products needed to address the COVID-19 outbreak. Such items include face masks, personal protective equipment (PPE), and other medical-related
HOW CAN IMPORTERS MINIMIZE THE FINANCIAL HIT OF PROVISIONAL CHINA TARIFFS?
- Know your product and search for exclusions that may apply
- Make sure you know whether your product is subject to provisional China tariffs
- Determine what the current rate is
- Decide if there is an exclusion how it might apply before you financially commit to an overseas order
- Find out If product qualifies for an exclusion
- Let us know if an exclusion applies so we can assist in taking advantage of the exclusion for future shipments
- Apply for a retroactive refund for past shipments that were subject to provisional China tariffs
- Exclusions expire
- They are retroactive, but in effect for only 1 year from the retroactive date, unless there is an extension granted
Contact your Business Development team to determine if your HTS Number can be excluded.