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U.S. Announces Exclusion Process for Section 301 ‘List 3’ Products

On June 24, the Office of the U.S. Trade Representative (USTR) announced in a Federal Register notice the establishment of a process for requesting exclusions from Section 301 duties for products on “List 3.”

List 3 includes thousands of products affecting almost all industries that rely on Chinese imports. It is composed of about 6,000 different Harmonized Tariff Schedule of the United States (HTSUS) codes, and the products on it comprise around $200 billion worth of imports. Beginning in September 2018, importers of List 3 items were subject to a 10% tariff. The tariff rate increased to 25% on May 10, 2019.

Purchasers, trade associations and other interested parties can request that products be excluded from Section 301 duties. The USTR will begin accepting such exclusion requests for List 3 products on June 30, 2019, and the deadline for submitting requests is Sept. 30, 2019. All requests must be submitted through an online portal on USTR’s website that will be active starting June 30.

In addition, domestic producers will also have the opportunity to object to exclusion requests. Responses to individual exclusion requests will be due 14 days after the request is posted on USTR’s online portal.

Any successful exclusion will be retroactively effective on Sept. 24, 2018, the date on which Section 301 duties for products on List 3 went into effect.

© 2020 BARNES & THORNBURG LLPNational Law Review, Volume IX, Number 177


About this Author

David M. Spooner, Barnes Thornburg Law Firm, Washington DC, Corporate and Finance Law Attorney

David M. Spooner is a partner in the Corporate Department and Co-Chair of the International Trade Practice Group. Mr. Spooner represents governments, trade associations, and corporate clients on international trade matters, including trade remedies, trade policy and customs issues. He uses his past experience as a high-level political appointee in the Executive Branch and on Capitol Hill to assist clients with their advocacy efforts before both branches of government, as well as before foreign governments.

Prior to entering private practice, Mr...

Linda M. Weinberg International trade lawyer Barnes Thornburg

Linda Weinberg provides practical advice to business and institutional clients on international trade law, including export controls, foreign assets control and customs. She works regularly with the U.S. and foreign government agencies that regulate international trade to help clients realize their distinct objectives surrounding their global commerce initiatives.

Co-chair of the firm’s International Trade practice group, Linda advises and represents clients on commodity jurisdiction, export classification, licensing, technical assistance agreements, and enforcement related to defense articles and dual-use items, encryption software and technical data and services. Her experience extends to a range of industries, including aerospace, satellite, nuclear, electronics, defense, security and software, among others. She has represented clients in export control matters elevated to the inter-agency Operating Committee and the Advisory Committee on Export Policy.

Linda is a member of the core team assisting the Special Compliance Coordinator appointed by the U.S. Department of Commerce to monitor, assess and report on the U.S. export control compliance of Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China, and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (collectively, ZTE).

In addition, Linda provides clients with counseling, licensing services and enforcement representation with respect to U.S. economic sanctions, related USA PATRIOT Act issues, anti-boycott regulation and CFIUS. Notably, she assists research and development companies and universities in complying with U.S. export control laws, particularly with respect to technology transfers to foreign national researchers and students.