We help clients shape the future by specializing at the intersection of business and government. As a national firm, we provide comprehensive government affairs, corporate advisory, and strategic public relations services designed to support organizations navigating complex environments.

Home | Michael Best Strategies

The United States Trade Representative (USTR) <a href="https://ustr.gov/sites/default/files/Section%20301%20FRN%20for%20Exclusion%20Process%20(Final).pdf" target="_blank" rel="noreferrer noopener">announced modifications</a> to the actions taken under the Section 301 investigation into China's practices related to technology transfer, intellectual property, and innovation. Among the changes are 14 temporary exclusions for solar manufacturing equipment and an exclusion process for select products imported under subheadings under Chapters 84 and 85 of the Harmonized Tariff Schedule. This new exclusion process is a significant opportunity for importers to receive temporary relief from the Section 301 tariffs.

core/paragraph

These actions follow the publication of a comprehensive report on the Section 301 investigation and a May 2024 Presidential Memorandum directing USTR to maintain and modify tariff rates on certain Chinese products. The memorandum also prioritized exclusions for solar manufacturing equipment and other machinery critical to domestic manufacturing. &nbsp;

The new machinery exclusion process allows individuals and organizations to request exclusions from the Section 301 tariffs for certain imports under HTS Chapters 84 and 85 by providing detailed product descriptions and robust justifications. The list of eligible subheadings is included <a href="https://ustr.gov/sites/default/files/89%20FR%2076581%20(September%2018%2C%202024).pdf" target="_blank" rel="noreferrer noopener">here</a> starting on page 76590. Some subheadings include machinery for agriculture, food and beverage, textile, packaging, paper, metal, laser, milling, and printed circuits.

The exclusion process opens today through March 31, 2025.&nbsp;After a product exclusion request is posted on the USTR's online portal, interested parties have 30 days to submit a response, either supporting or opposing the request. USTR will assess requests case-by-case, considering their impact on the investigation’s objectives and the U.S. economy, and will monitor the exclusions’ overall effectiveness in pressuring China to address its unfair trade practices. Approved exclusions go through May 31, 2025.&nbsp;

The Michael Best Strategies trade team is ready to assist companies through the exclusion process. Please contact Sarah Helton, Michael Best Strategies’ Trade Practice Lead at&nbsp;<a href="mailto:sarah.helton@michaelbest.com">sarah.helton@michaelbest.com</a>.&nbsp;

Aerial view of a bustling port with colorful shipping containers, large cranes, and a river. The city skyline is visible in the background at sunset.

Abstract image depicting a dark blue background with a pattern of small, light blue dots forming upward spikes, resembling a digital graph or skyline.

USTR Initiates Section 301 Exclusion Process for Domestic Manufacturing Machinery

Related People

Services

Related Services

Related People

Slide Menu

Slide Search