global-trade-and-supply-chain
May 28, 2024

USTR Ends Some Section 301 Exclusions While Extending Others Another Year

The Office of the U.S. Trade Representative (USTR) has announced it will end some exclusions for products from China that are subject to Section 301 tariffs, while extending others for an additional year. This decision follows USTR’s release of its four-year review earlier this month.

USTR reviewed 429 product-specific exclusions (352 previously reinstated exclusions and 77 COVID-related exclusions) that were set to expire on May 31. In the notice, USTR stated that all exclusions will be extended until June 14, 2024, to allow a 14-day transition period.

View the Exclusion Notice

Within the 429 exclusions:
  • Certain exclusions (listed in Annex C) have been granted a further extension through May 31, 2025.
  • Remaining exclusions (listed in Annex D) will not be extended beyond the 14-day transition period.
According to the notice, USTR found that Annex C extensions through May 31, 2025, will:
  • Support efforts to shift sourcing out of China; or
  • fou
  • Provide additional time where availability of the product outside of China remains limited.
USTR’s decision not to extend the remaining exclusions in Annex D was based on various factors, including:
  • Lack of stakeholder requests for an extension of 102 exclusions;
  • Insufficient demonstration that an extension would aid in shifting sourcing out of China;
  • Opposing comments indicating availability from domestic or third country sources;
  • Claims of unavailability based primarily on price competitiveness with Chinese sources.

Your Feedback is Needed. Next Steps:

The Auto Care Association is actively soliciting member feedback on the USTR’s four-year review, the continued impact of the Section 301 tariffs on your businesses and your sourcing efforts. Your input is invaluable and will contribute to the association’s comments.

Please reach out to Angela Chiang at angela.chiang@autocare.org with any information or insights you wish to share.

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