Industry News

Section 301 Exclusion Extension for COVID Relief Products

By September 28, 2021 No Comments

The US Trade Representatives (USTR) office has decided to extend the current exclusions for 99 products deemed crucial to America’s efforts to combat the COVID pandemic. Originally scheduled to expire on September 30, the three exclusion sets have now been temporarily extended to November 14. In August, the USTR had requested comments through September 27 on extending the exclusions for the affected products; the announced delay is related to this process. A list of longer term exclusion extensions is expected before the November expiration.

 

Industrial Policy and Trade Policy

Findings from a “100-day supply chain review”  suggest that Biden will pursue industrial policies that will shield US manufacturing and industry from foreign competition. Ostensibly, a continuation of the protectionist policies espoused by former President Trump, which includes additional tariffs on products deemed essential or assisted by unfair trade practices. To this date, the Biden administration has kept all of the Section 301 tariffs for China origin goods in place. Reports indicate they are contemplating a new Section 301 investigation in China’s industrial subsidies. This could be a move to increase leverage in negotiations with China on purchases of US goods or their unfair trade policies. The same supply chain review also recommends new Section 232 investigations into neodymium magnets to bolster US production.

Early this year, the US and EU agreed to suspend the Section 301 tariffs imposed in the Boeing-Airbus disputes. The suspension gives each side an opportunity to work out details and challenges to the elimination of these tariffs.  The US and the EU are also in talks to eliminate the existing Section 232 tariffs on steel and aluminum imported from the EU or replace the tariffs with a tariff rate quota. Many US manufacturers have been pressing the administration for an elimination of the tariffs to give them access to more steel imports at reasonable costs.

 

Changes Coming October 1

October 1 will be the start of a new fiscal year for Customs and the US government as a whole. Customs related changes include a modest increase in fees and more imported goods requiring a Lacey Act filing. As noted earlier, the new minimum and maximum Merchandise Processing Fees will increase to $27.23 and $528.33, while the actual rate of 0.3464% will remain the same.

Phase 6 of the Lacey Act will also be implemented on October 1. This phase expands the list of items covered to certain wood-based essential oils, wooden trucks and suitcases, empty packing products and musical instruments. The implementation of this phase was published in the Federal Register on July 2, 2021 and can be viewed here.

 

Regards,

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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