So-Called “301 Exclusions” Continue Into 2024

At a glance

• The main takeaway: The USTR plans to extend Section 301 exclusions through May 31, 2024.
• Impact on your business: The planned extension covers products including manufacturing components, hydraulic control valve push pins, and hand sanitizer dispensers.
• Next steps: Aprio encourages impacted taxpayers to understand the extension and submit comments via the USTR’s online docket.

The full story:

On December 26, 2023, the Office of the U.S. Trade Representative (“USTR”) revealed plans to extend through May 31, 2024, a set of exclusions related to Chinese products, known as Section 301 exclusions. These exclusions were originally introduced in 2018, allowing companies to apply for certain products to be excluded from tariffs.

Section 301 includes two sets of exclusions: general exclusions as well as COVID-related exclusions. This notice would extend both sets for an additional five months. If the exclusions expire after May 31, 2024, covered products would be subject to a range of tariffs, from 7.5% up to 25%.

The USTR has opened a public comment period starting January 22, 2024, to gather feedback about the extended exclusions. To learn more about the extension and to make public comments, visit http://comments.USTR.gov. The period for public comment closes February 21, 2024.

The bottom line:

If you need assistance in reviewing the applicability of any exclusions, filing comments, or identifying duty mitigation opportunities, please contact Jay Cho, Director of Aprio’s Tariffs and Customs practice.

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