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Section 301 Exclusion Extensions Granted

The USTR has announced four new sets of exclusion extensions covering medically related products addressing the COVID-19 pandemic. These exclusions were not granted through the normal exclusion process; there was not a comment period to apply for extensions on the remaining exclusions already granted for Section 301 additional tariffs on China origin goods. All four lists were released simultaneously and will carry new provisional numbers for the extension. The new provisional tariffs are 9903.88.62, 9903.88.63. 9903.88.64 and 9908.88.65 and they can be found at this link. The provisional numbers currently in use (9903.88.06, 9903.88.50, 9903.88.52, 9903.88.54, 9903.88.56, 9903.88.57, 9903.88.58, 9903.88 59 & 9903.88.60) will cease to be active on January 1, 2021.

The new extensions cover certain medical goods and products which were set to lose their exclusions on December 31, 2020. The extensions will only be valid from January 1, through March 31, 2021. It remains to be seen what action will be taken by the incoming administration in regards to 301 exclusions as well as with this new set of extensions.

This unusual move came after an ITC report concluded that US companies are facing challenges ramping up production of COVID related medical goods to meet the rising demand. As always, when exclusions or extensions are granted at the last minute there may be a lag getting the correct provisional numbers working.

Expiration of the Miscellaneous Trade Bill of 2018

The Miscellaneous Trade Bill (MTB) of 2018 will expire on December 31, 2020. The goods which received preferential tariff treatment under the bill will once again be assessed the standard duty rate upon importation. A new MTB (MTB of 2020) has been working its way to Congress for the past few months, but the bill has not been taken up at this time. The USITC had delivered the final report on miscellaneous trade bill petitions in August and their part is now finished.

Many of the same products covered by the MTB of 2018 can be found on the new bill along with new additions. If the bill is signed into law after January 1 it is unlikely to be retroactive, so preferential duty treatment of the covered products will cease temporarily.

A similar fate holds true for the Generalized System of Preferences (GSP), which will also expire on December 31. However, in the past delayed renewals have been retroactive to the expiration date. Therefore, refunds of overpaid duties were triggered upon renewal.

 

Sam McClure, LCB

Director of Compliance & Customs Services

 

Need a refresher on tariff rounds and exclusions?

CVI Exclusion Guide 2020

CVI has a free, complete guide to EVERYTHING you need to know for tariff rounds and exclusions, including:

  • HTS Code
  • Publish Dates
  • Exclusion provision number per set list and round
  • Effective & Extended Expiration Dates

The CVI Exclusion Guide 2020 provides you with a link to original USTR exclusion announcements with a breakdown of each excluded product.

Please let us know if you have any questions. We will be regularly updating this document via our website. Check it out here!

 

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Meet one of CVI’s Customs Brokerage & Compliance experts, Sam McClure:

Sam serves as Director, Compliance and Customs Services for CVI. He serves as CVI’s corporate compliance officer and is responsible for overseeing all aspects of our Customs related services, including growth.

Sam started his career in 1977 with Waters Shipping Company in Charlotte, NC. He began as a document runner, soon becoming a leader in operations and customer service for the branch. Sam, along with Linda Masten, founded Central Carolina Shipping Inc. in 1983 as an independent Customs Brokerage firm where he served as Vice President for 26 years. Sam and Linda grew Central Carolina into a successful and highly respected member of the Carolinas trade community. When Charlotte opened their local chapter of the IFFCBA Sam was part of the organizing group and he headed the Customs committee for several years. Sam obtained his Customs Brokers License in 1984 and remained with Central Carolina until the company was acquired by CVI in 2009.

At CVI, Sam has held several positions in both the operations and sales departments. As an expert in U.S. Customs regulations, Sam is often called upon on to provide guidance to importers on Customs compliance issues. He makes regular presentations on matters related to importation and broader regulatory compliance.

– Sam McClure, LCB, Director of Compliance & Customs Services, CVI
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