The Section 301 tariff exclusions on Chinese manufactured goods have been updated to allow exemptions on 352 of the original 549 exemptions that were initially provided. The reinstated exclusions will be retroactive back to October 12, 2021, and valid through December 31, 2022. The validation comes after a public comment period that looks into whether these products are available from suppliers outside China; have a verifiable impact on deterring the behaviors from China that resulted in the tariffs originally; and/or present a significant economic hardship for the importer or US interests.
Further to this action, the Court of International Trade (CIT) has determined that the application of these tariffs is legal and within the purview of the US government despite being a presidential action and not a committee or agency action; however “(2) the USTR failed to respond adequately to comments it received during the rulemaking process when it proposed tariffs on these additional products and thus did not adhere to the standards set forth in the Administrative Procedure Act (APA). The order by the CIT states these deficiencies must be corrected by June 14, 2022, with comments due two weeks later.
The CIT further determined that the reciprocal tariffs set by China after the initial round constituted retaliation and therefore the List 3 and 4A are valid and applicable and therefore, further tariffs were required to deter the actions and behaviors that are noncompliant with proper trade remedies in China.
Admittedly, it’s been a while since these topics have been in the news, and it’s been eerily quiet without a frequent trade-by-tweet crisis that is subject to change at a moment’s notice. Still, the point of the tariffs remains an economic deterrent that looks to prevent illegal and unethical behaviors from other nations to the detriment of US companies, suppliers, and consumers.
We at Edward J. Zarach & Associates are working hard to keep up on the latest developments as they unfold and involve our clients’ interests. If you have any imports that might be due for a reinstated exclusion, reach out to your Zarach representative for assistance and guidance.