The Office of the United States Trade Representative (“USTR”) opened its exclusion request process on October 15, 2024, allowing for importers to request temporary exclusion from Section 301 tariffs on certain Chinese machinery and equipment. The purpose of this exclusion process is to encourage US manufacturing by permitting machinery to be imported duty-free. This process includes over 300 tariff subheadings in chapters 84 and 85 of the Harmonized Tariff Schedule of the United States (“HTSUS”). The portal to request temporary exclusion is set to close on March 31, 2025.
After a request is filed to the USTR online portal, interested parties have an opportunity to voice their opposition of support within 30 days of posting. Following any comments from interested parties, the requesting party has an opportunity to respond within 15 days after posting. Determinations of the exclusion requests will be periodically announced by USTR and granted exclusion requests will be announced in the Federal Register. If granted, the exclusion will be in effect from the date of publication to the Federal Register, through May 31, 2025.
To date, 186 exclusion requests have been submitted. However, none have been granted or denied, as all the exclusion requests currently posted are either open to public comment or are under review by USTR.
Crowell & Moring LLP will continue to monitor trends for granted exclusions requests, as well as the status of this exclusion request process upon the upcoming administration change in January 2025.