Last week, USTR posted another round of List 1 exclusion extensions, this time for products and HTS subheadings with exclusions expiring on July 9, 2020. The extended exclusions cover twelve specially-prepared product descriptions.

While USTR indicated that it would consider extensions of up to 12 months, these exclusions have been extended only through December 2020. The new expiration date for these exclusions is December 31, 2020. All other HTS subheadings and products with exclusions granted in July 2019 have lost their exclusions as of July 9, making them subject to the 25 percent tariff applied to List 1 goods.

As always, product exclusions are not importer-specific—they are applicable for any importer of the excluded merchandise. The scope of the exclusions is governed by the language of the product descriptions provided by USTR in its list, not by product descriptions shown in any particular exclusion request or HTS classification.

There are currently three open comment periods for exclusion extensions for List 2 and 4A goods: List 2 exclusions granted in September and October of 2019 and List 4A exclusions granted in March, May, and June of 2020. Comments can be submitted using USTR’s online portal. The deadline for comments on these exclusions is July 30, 2020. No exclusions have been extended by USTR in the absence of comments in support of the extension. Therefore, we recommend that you strongly consider submitting comments in support of the extension of any product exclusions benefitting you or your suppliers.

USTR ANNOUNCES LATEST ROUND OF LIST 4A EXCLUSIONS

Additionally, USTR announced a new round of exclusions for products on List 4A.  The exclusions consist of 61 product-specific exclusions, which cover commodities such as fabrics, and various steel products and machinery.  This is the sixth round of List 4A exclusions. 

The exclusions in this notice apply retroactively to goods entered for consumption or withdrawn from warehouse on or after September 1, 2019, and will remain in effect until September 1, 2020.  As always, product exclusions are not importer-specific—they are applicable for any importer of the excluded merchandise.

Depending on the entry date, you or your broker will need to file a post-summary correction or protest of liquidation with U.S. Customs and Border Protection to obtain a refund for any excluded products that entered the U.S. customs territory on or after September 1, 2019.

This latest round of list 4A exclusions are not yet eligible for extension.  

For more information, please contact Samantha Rocci at [email protected].