The U.S. Trade Representative (USTR) has announced that it will be reinstating most of the eligible tariff exclusions in its China Section 301 investigation. The exclusions had expired in December 2020.

The Development: The Office of U.S. Trade Representative Ambassador Katherine Tai has determined that 352 of the eligible 549 Section 301 tariff exclusions will be reinstated.The determination was made after consideration of public comments on the issue and in consultation with other U.S. agencies. The reinstated exclusions are set out in the Federal Register notice, which can be viewed here.

The Promo Angle: The exclusions are retroactive to October 12, 2021, and promo industry members with any products on those lists should see a change in the tariff costs for importing those and possibly a refund of any tariffs paid since the retroactive date.

Background:In October 2021, following pressure by PPAI and its coalition partners, the USTR solicited public feedback on the possibility of reinstating exclusions on some products subject to the Section 301 tariffs.

Collectively, the four tariff actions resulting from the USTR’s Section 301 investigations affect a huge majority of products imported from China, with the latter two tranches significantly impacting the promotional products industry. Prior to each tariff action, PPAI collaborated with more than 100 coalition partners to oppose any import duties, which are tantamount to taxes that adversely impact businesses and consumers.