USTR Announces List 4A Exclusion Process

The USTR announced it will begin accepting exclusion requests for List 4A products subject to Section 301 duties assessed against China. The process will open on October 31, 2019 at noon Eastern Time. The final deadline for submitting applications will be January 31, 2020 11:59 PM Eastern time. The USTR notice is available here.

Approved exclusion requests will exempt List 4A products from Section 301 tariffs for one year, retroactively beginning on September 1, 2019-the effective date of these tariffs. All approved requests will be effective until September 1, 2020-one year from the date of List 4A tariffs becoming effective.

The USTR will evaluate each request on a case-by-case, and will determine whether a specific product should be excluded based on: 1) the rationale of the exclusion, 2) whether the granting of the exclusion would undermine the objective of the Section 301 investigation, and 3) whether the request defines the product with sufficient precision.

The USTR will be using a web portal similar to the List 3 exclusion process to collect submissions. Newly required information in the application includes whether the product is currently subject to an antidumping or countervailing duty order issued by the U.S. Department of Commerce.

Applicants must also provide the following:

  • An expanded description of the product describing the product function, application, principal use, and any unique physical features that distinguish it from other products within the covered 10-digit HTSUS subheading.

  • Information regarding the requester’s gross revenues for 2018 and first half of 2019.

  • Applications must be supported with specific information as to whether a product is available only from China; whether a product is available from the U.S. or a third country; and whether the requester has attempted to source the products elsewhere.

  • An indication of whether the applicant has made prior applications for relief under Lists 1, 2 or 3.

  • Whether the products are critical to the “Made in China 2025” program.

  • A discussion of the degree of economic harm to the applicant.

All submissions must also provide a clear basis for the HTS subheading asserted for the product.

The application form with the full information required can be viewed here.

All applications will be open for public comment. Responses to individual requests are due 14 days after the application is posted. Replies to responses are due 7 days after the close of the 14-day response period, or 7 days after the posting of a response-whichever occurs later.

Should you require assistance to prepare or validate List 4A submissions prior to their submission to the USTR, please contact one of the trade professionals listed here.