The Office of the United States Trade Representative (USTR) has announced that it opened an electronic portal on October 15, 2024, establishing a process by which interested persons may submit requests for temporary exclusion from Section 301 China tariffs for particular machinery used in domestic manufacturing classified within Chapters 84 and 85 of the Harmonized Tariff Schedule of the United States (HTSUS). The subheadings eligible for consideration of temporary exclusion under the machinery exclusion process are set forth in Annex E of another USTR notice published on September 18, 2024. Exclusion requests will be accepted through March 31, 2025.
Each exclusion request must identify a particular product, provide support data, and the rationale for the requested exclusion. The USTR will evaluate each request on a case-by-case basis, taking into account the asserted rationale for the exclusion, whether the exclusion would undermine the objective of the Section 301 investigation, and whether the request identifies the product with sufficient precision.
Regarding precise product identification, any request for exclusion must include the following information:
The 10-digit subheading of the HTSUS applicable to the manufacturing equipment requested for exclusion. If no 10-digit subheading is available, use the 8-digit subheading and add “00”.
A complete and detailed description of the manufacturing equipment, including:
Physical characteristics (e.g., dimensions, weight, material composition, etc.);
Whether the manufacturing equipment is designed to function in or with a particular machine (application);
The manufacturing equipment’s principal use;
The unit value of the manufacturing equipment (please provide a range if necessary);
Any unique physical features that distinguish it from other manufacturing equipment within the covered 10-digit HTSUS subheading;
Images and specification sheets, CBP rulings, court decisions, and previous import documents are admissible attachments.
Whether the manufacturing equipment of concern is subject to any antidumping or countervailing duty order issued by the U.S. Department of Commerce.
Whether the manufacturing equipment will be used for domestic manufacturing, how the equipment will be used, and the manufacturing sector.
If applicable, documents showing grant funding from, or grant application to, a federal investment program related to the domestic manufacturing at issue, such as the Inflation Reduction Act (IRA), CHIPS and Science Act, Build America Buy America (BABA), and Rural Energy for America Program (REAP).
Whether the manufacturing equipment of concern, or comparable equipment, is available from sources in the U.S. or third countries, as well as information regarding attempts of the requesting organization to retrieve the equipment from the sources.
Whether the requesting organization has purchased the manufacturing equipment from a source in the U.S. or a third country in the past five years and why the equipment is no longer available from this source.
Whether the manufacturing equipment is strategically important or related to “Made in China 2025” or other Chinese industrial programs.
Once a particular request for exclusion has been posted to the USTR’s online portal, interested persons will have 30 days to respond to such request. Following any response, the original exclusion requester may submit a reply within the later of 15 days after the posting of a response, or 15 days after the closing of the 30-day response period. All responses and replies will be publicly available.
Exclusion request applications might benefit from additional information, such as whether the requester’s business satisfies the Small Business Administration’s size standard for a small business, which are identified by North American Industry Classification Systems Codes and are found here. Finally, it would be beneficial for the requester to indicate whether Section 301 China tariffs pose significant financial hardship or if their products are unavailable outside of China.
For assistance in submitting Section 301 China tariff exclusion requests, or assessing the applicability of your particular products, please contact one of our trade professionals here.