Section 301 Tariff Exclusions Extended by the USTR with Results of the Four-Year Review Arriving this Fall

Sep 11, 2023
By: Hannah B. Kreinik

Good news for some companies benefiting from Section 301 exclusions, two divisions of the exclusions are receiving an extension from the U.S. Trade Representative (“USTR”). The USTR, Kathrine Tai, also announced that the pending four-year review would be completed this fall. The Federal Register publication for the exclusion extensions can be found here. This leaves many companies with products produced in China on the edge of their seats preparing for the much-anticipated review’s results.

The initial end date for the exclusions was set for September 30^th, however the USTR has allowed the extension to cover the remainder of the year. This means the current 301 exclusions granted to companies may be utilized for the rest of 2023. The USTR detailed that the reasoning for the extension, besides allowing for a transition period, included permitting the agency more time to review the original 352 exclusions from the Trump Administration as well as the 77 additional exclusions from the Biden Administration for COVID-related goods. This extension is available to the USTR under Sections 301(b), 301(c), and 307(a) of the Trade Act of 1974.

The Section 301 tariffs in general, as well as the exclusion process have drawn a lot of attention over the past four years, both praise and criticism. The Secretary of Commerce, Gina Raimondo, commented that none of the tariffs on designated goods will change until the USTR has completed its review.

The trade industry has reached out to the USTR regarding the four-year review results in addition to receiving more timely exclusion extensions, which have arrived within days of the exclusion’s expiration previously. Only time will tell what the USTR’s review reveals and whether certain companies will have the opportunity to continue using Section 301 exclusions in 2024.

The attorneys at Barnes, Richardson & Colburn are at your service to analyze your company’s potential for a Section 301 exclusion, or the risk associated with losing an exclusion. Please do not hesitate to contact us regarding any Section 301 issue.