On October 15, 2024, the U.S. Trade Representative (USTR) announced the opening of a portal for importers to use in order to request exclusions from the China 301 tariffs for certain machinery used in domestic manufacturing. Importers can only request exclusions for equipment included in more than 100 Harmonized Tariff Schedule of the United States (HTSUS) subheadings and are limited to requesting exclusions for items listed in Annex E of USTR's notice from September 18, 2024. 

Here is what importers need to know:

• The eligible machines are listed in HTS headings 8417-8420, 8422, 8429, 8430, 8432-8439, 8441, 8442, 8444-8449, 8451-8465, 8468, 8475, 8477-8479, 8486, 8514, 8515, and 8543. However, an exclusion can only be requested for the machines explicitly listed in Annex E (found here).
• Any exclusion request must include the following:
  • Contact information of the requester, including the full legal name of the organization making the request, whether the requester is a third party (law firm, trade association, or customs broker) submitting on behalf of an organization or industry, and the primary point of contact.
  • The 10-digit HTSUS subheading applicable to the manufacturing equipment requested for exclusion. If no 10-digit subheading is available, requesters should use the eight-digit subheading and add ''00.'' 
  • A complete and detailed description of the manufacturing equipment, including physical characteristics (e.g., dimensions, weight, material composition, etc.), whether the manufacturing equipment is designed to function in or with a particular machine, the manufacturing equipment's principal use, the unit value of the manufacturing equipment, and any unique physical features that distinguish it from other manufacturing equipment within the covered 10-digit HTSUS subheading. 
  • Whether the manufacturing equipment is subject to an antidumping or countervailing duty (ADD/CVD) order issued by the Department of Commerce. 
  • Whether the manufacturing equipment will be used for domestic manufacturing, how the equipment will be used, and the manufacturing sector. 
  • If applicable, documents showing grant funding from or a grant application to a federal investment program related to the domestic manufacturing at issue. 
  • Whether the manufacturing equipment or comparable manufacturing equipment is available from sources in the U.S. or third countries and any attempts of the requesting organization to source the manufacturing equipment from the U.S. or third countries. 
  • Whether the requesting organization has purchased the manufacturing equipment of concern from a source in the U.S. or in a third country in the past five years and why the manufacturing equipment is no longer available from this source. 
  • Whether the manufacturing equipment of concern is strategically important or related to "Made in China 2025" or other Chinese industrial programs.
• The exclusion request portal will remain open until March 31, 2025. Any new exclusions to the section 301 tariffs granted by USTR will apply starting on the day that the exclusion is publicly granted. The new exclusions will last only until May 31, 2025, regardless of when it is granted.
• The same portal will accept responses to exclusion requests submitted by interested parties within 30 days after the exclusion request is posted on USTR's online portal. Importers may then file a rebuttal within the later of 15 days after the posting of the response or 45 days after the request was first posted.

If you have any questions about requesting a section 301 tariff exclusion for certain machinery or section 301 tariff exclusions in general, please contact one of the Miller & Chevalier attorneys listed below.

Richard A. Mojica, rmojica@milchev.com, 202-626-1571

Alexandra S. Prime*

*Former Miller & Chevalier attorney

The information contained in this communication is not intended as legal advice or as an opinion on specific facts. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. For more information, please contact one of the senders or your existing Miller & Chevalier lawyer contact. The invitation to contact the firm and its lawyers is not to be construed as a solicitation for legal work. Any new lawyer-client relationship will be confirmed in writing.

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