The Office of the US Trade Representative (USTR) recently released a Memorandum outlining actions to be taken in response to the statutory 4-Year Review of the Section 301 Investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (Section 301 Investigation).  The review looked at the effectiveness of eliminating China’s technology transfer-related acts, policies, and practices and the overall effects of the tariff actions on the U.S. economy. Based on this review, modifications to the actions have been proposed.

Most notably, as published in the Federal Register on May 20^th, 2024, the memorandum announced modifications to Section 301 duties and exclusions. These changes will greatly impact duties and taxes imposed on China-origin imports into the US.

Additional 301 Tariffs

For China-origin imports, current 301 Tariffs will remain in effect, and additional 301 Tariffs will be imposed on China-origin goods in the following categories:

Broadened Exclusion Categories

Additionally, in support of US manufacturing, additional exclusions are to be made available covering manufacturing machinery and solar manufacturing equipment. However, many existing exclusions on prior 301 lists are set to expire June 14^th, 2024 with limited extensions to May 31^st, 2025.

Additional Request for Comment and Updates

Since the USTR published the May 14^th memorandum, the USTR has published notices and requests for comment further to the proposed exclusion process:

• On May 28, 2024, the USTR published a request for comment for proposed exclusions for machinery that aids in domestic production. Within this request for comment, the USTR provides a list of manufacturing machinery (Annex B) and solar manufacturing equipment (Annex C): The USTR is seeking public comment on the proposed expanded exclusion. Comments must be submitted by June 28, 2024, at 11:59 p.m. EST. To be assured of consideration, you must submit all comments through the online portal: https://comments.ustr.gov under docket Docket Number USTR-2024_0007.
• On May 30, 2024, the USTR published a notice reporting to provide a transition period. The current exclusion, due to expire on May 31, has been extended until June 14, 2024. Additionally, in response to public comment, the USTR has extended the exclusion period for certain products for a one-year period until May 31, 2025 (Annex C) and declined to extend past June 14, 2024, for certain products (Annex D).

Tradewin Can Help

The actions being proposed and/or taken by the USTR are complex and dynamic. In addition to ACE data reviews, impact reporting, and analysis, Tradewin can validate HTS Classifications and Country of Origin determinations to confirm these duties are applied appropriately and draft exclusion requests. Tradewin is prepared to assist in guiding our clients in navigating these very impactful actions. Contact us for assistance.

May 30, 2024 – USTR Notice of Extension of Certain Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation: Federal Register: Notice of Extension of Certain Exclusions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

May 28, 2024 - Request for Comments on Proposed Modifications and Machinery Exclusion Process in Four-Year Review of Actions Taken in the Section 301 Investigation: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation: Federal Register :: Request for Comments on Proposed Modifications and Machinery Exclusion Process in Four-Year Review of Actions Taken in the Section 301 Investigation: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

May 20, 2024 - Actions by the United States Related to the Statutory 4-Year Review of the Section 301 Investigation of China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation: Memorandum for the United States Trade Representative: Federal Register :: Actions by the United States Related to the Statutory 4-Year Review of the Section 301 Investigation of China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation