China Tariff Exclusions Updates
Sandler, Travis & Rosenberg Trade Report | www.strtrade.com
More China List 1 Tariff Exclusions Extended but Only for Six Months
These exclusions are available for any product that meets the specified product description, regardless of whether the importer filed an exclusion request.
The Office of the U.S. Trade Representative has extended the exclusion of the following products from the Section 301 additional 25 percent tariff on imports of List 1 goods from China.
– HTSUS 8481.10.0090 (other pressure-reducing valves)
– HTSUS 8483.50.9040 (other flywheels and pulleys)
– filtering or purifying machinery or apparatus of a kind used for waste water treatment (described in HTSUS 8421.21.0000)
– air purification equipment, electrically powered, weighing less than 36 kg (described in HTSUS 8421.39.8015)
– armatures designed for use in hydraulic solenoid valves (described in HTSUS 8481.90.9040)
– C-poles, of steel, designed for use in hydraulic solenoid control valves (described in HTSUS 8481.90.9040)
– metering spools, of aluminum, designed for use in hydraulic solenoid control valves (described in HTSUS 8481.90.9040)
– metering spools, of steel, designed for use in hydraulic solenoid control valves (described in HTSUS 8481.90.9040)
– poles, of steel, designed for use in hydraulic solenoid control valves (described in HTSUS 8481.90.9040)
– push pins, of steel, designed for use in hydraulic solenoid control valves (described in HTSUS 8481.90.9040)
– retainers, of steel, designed for use in hydraulic solenoid control valves (described in HTSUS 8481.90.9040)
– stereoscopic microscopes, not provided with a means for photographing the image, valued not over $500 per unit (described in HTSUS 9011.10.8000)
– adapter rings, tubes and extension sleeves, stands and arm assemblies, stages and gliding tables, eye guards and focusing racks, all the foregoing designed for use with compound optical microscopes (described in HTSUS 9011.90.0000)
These exclusions are available for any product that meets the specified product description, regardless of whether the importer filed an exclusion request. The scope of each exclusion is governed by the scope of the specified 10-digit HTSUS subheadings and product descriptions and not by the product descriptions in any particular request.
However, this extension of these exclusions is only valid until Dec. 31, not for an entire year as has previously been the case. USTR states that this shortened extension is due to “the cumulative effect of current and possible future exclusions or extensions of exclusions on the effectiveness of” the Section 301 tariffs. USTR explains that it has granted more than 6,200 exclusion requests to date, has extended some of these exclusions, and may consider further extensions. In addition, more than 8,600 exclusion requests are pending on List 4 goods. USTR states that it will take account of the cumulative effect of exclusions in considering the possible further extension of these and other exclusions.
On the other hand, the tariff exclusions granted in May 2019 for the following items are not being extended and will therefore expire May 14, at which point the 25 percent additional tariff will again be imposed on these goods.
– HTSUS 8407.21.0040 (outboard motors less than 22.38 kW)
– HTSUS 8427.10.4000 (rider-type, counterbalanced fork-lift trucks)
– HTSUS
8473.40.1000 (printed circuit assemblies for automatic teller machines)
– apparatus, including pitchers, bottles, and units designed for incorporation into refrigerators, appliances, or sink faucets, the foregoing fitted with filters for filtering or purifying water (described in HTSUS 8421.21.0000)
– filtering apparatus, fitted with pumps, designed for use in pools, spas, or similar contained bodies of water (described in HTSUS 8421.21.0000)
– submersible machinery for filtering water, designed for use in pools, basins, aquariums, spas, or similar contained bodies of water (described in HTSUS 8421.21.0000)
– water distillation machinery and apparatus not covered by heading 8419 (described in HTSUS 8421.21.0000)
– dust collection equipment for cement, minerals, and mining industries (described in HTSUS 8421.39.8015)
– apron-type chain conveyors (described in HTSUS 8428.39.0000)
– roller conveyors (described in HTSUS 8428.39.0000)
– vibrating conveyors (described in HTSUS 8428.39.0000)
– machinery for mixing beverages in single servings for direct human consumption, designed for use in commercial food service establishments (described in HTSUS 8438.80.0000)
– machinery for reconstituting single serving beverages for direct human consumption from frozen pre-packaged portions, designed for use in commercial food service establishments (described in HTSUS 8438.80.0000)
– housings designed for hydraulic ball valves, of cast iron or steel, each measuring 5.7 cm by 3.2 cm and weighing 0.528 kg (described in HTSUS 8481.90.9040)
– DC electric motors, of an output of less than 18.65 W, valued over $4, other than brushless (described in HTSUS 8501.10.4060)
– AC electric motors, multi-phase, of an output exceeding 14.92 kW but not exceeding 75 kW, other than for use in civil aircraft (described in HTSUS 8501.52.8040)
– coils, coil assemblies, and other parts of electromagnets (described in HTSUS 8505.90.7501)
– radio remote control apparatus for garage doors (described in HTSUS 8526.92.5000)
– radio remote control apparatus for pet collars and pet food dispensers (described in HTSUS 8526.92.5000)
– remote control devices, hand held and battery powered, designed for use with toy model vehicles and aircraft (described in HTSUS 8526.92.5000)
– bezels, covers, and housings designed for motor vehicle cameras (HTSUS 8529.90.8100)
– electromechanical relays, for a voltage exceeding 60 V but not over 250 V, with contacts rated at 10 A or more (described in HTSUS 8536.49.0075)
– push-button switches, rated at over 5 A, measuring no more than 2.9 cm by 2.9 cm by 2.9 cm, with 4 spade or brass terminals, with an actuator shaft with D-shaped cross section (described in HTSUS 8536.50.9035)
– push-button switches, rated at over 5 A, measuring no more than 4.8 cm by 2.8 cm by 2.8 cm, with 2 spade or brass terminals (described in HTSUS 8536.50.9035)
– push-button switches, rated at over 5 A, measuring no more than 5 cm by 1.7 cm by 1.9 cm, with 2 spade or brass terminals, with an actuator shaft with D-shaped cross section (described in HTSUS 8536.50.9035)
– snap-action switches, each designed for installation in a wall-mounted enclosure or electrical box (described in HTSUS 8536.50.9040)
–
ultraviolet or infrared LED light therapy devices for the professional
treatment of pain or of ailments of the skin (described in HTSUS 9018.20.0040)
China Announces Second Round of Tariff Exclusions for U.S. Goods
China announced May 12 the second round of exclusions from its additional 25 percent tariff on imports of U.S. goods. These exclusions apply to 79 products (see attached for a complete list), including rare earth mineral ores, aircraft radar equipment, semiconductor parts, medical disinfectants, and various precious metals and chemical and petrochemical products.
These exclusions will be effective from May 19, 2020, to May 18, 2021. Importers of record will be eligible for refunds of the additional tariffs paid on these goods and will have six months to apply.
For U.S. goods still subject to China’s additional tariffs, there are alternatives to mitigate the impact. These include applying for market-based exclusion, restructuring global supply chains, etc.
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