China tariff exclusions are expiring

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On July 9th, the U.S. Trade Representative announced that only 12 products from Section 301 tariffs on List 1 will have their exclusions extended until December 31, 2020. The remaining exclusions have expired on that list and will return to a duty of 25% and many more exclusions on other listed goods are set to expire throughout the summer. Pending extension announcements on List 3 items, those exclusions are set to expire as of August 7th.

The expirations come quickly after comments from President Trump dampened the excitement for a Phase Two deal with the Chinese in light of issues surrounding the Coronavirus. While many expected second phase negotiations to be well underway by the middle of 2020, the virus has caused a massive upset in the logistics industry and back-and-forth negotiations were halted as the President threatens to “hold China accountable”.

Other issues in the stalemate include the national security law that China recently imposed on Hong Kong, which looks to cause great harm to the Hong Kong independent courts and their ability to freely protest and assemble to drive the Chinese government to listen to public grievances. It’s thought that these steps and comments are a way for the U.S. to slowly rachet up the tension with Beijing and bring them to a more U.S. benefitting position during the negotiations.

Just two days ago, a bipartisan bill was introduced by representatives in the U.S. House to grant further relief for American businesses from the tariffs being implemented. The Export Tariff Act, H.R. 7665, sponsored by U.S. Rep Jackie Walorski (R-IN) and U.S. Rep.  Collin Peterson (D-MN) is expected to provide American businesses another year of relief from tariffs under Section 301 of the Trade Act of 1974 by extending product exclusions currently in effect.

If you are dealing with imported goods that are listed in the China Section 301 duties and need help or guidance, please reach out to your Coppersmith representative for a conversation on how we can help you look for new sources or lobby your representatives for exclusions during this process.

The exclusions that have been extended on List 1 are below.

(1) Direct acting and spring return pneumatic actuators, each rated at a maximum pressure of 10 bar and valued over $68 but not over $72 per unit (described in statistical reporting number 8412.39.0080) (

2) Pump casings and bodies (described in statistical reporting number 8413.91.9080 prior to January 1, 2019; described in statistical reporting number 8413.91.9095 effective January 7 1, 2019 through December 31, 2019; described in statistical reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 2020)

(3) Pump covers (described in statistical reporting number 8413.91.9080 prior to January 1, 2019; described in statistical reporting number 8413.91.9095 effective January 1, 2019 through December 31, 2019; described in statistical reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 2020)

(4) Pump parts, of plastics, each valued not over $3 (described in statistical reporting number 8413.91.9080 prior to January 1, 2019; described in statistical reporting number 8413.91.9095 effective January 1, 2019 through December 31, 2019; described in statistical reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 2020)

(5) Compressors, other than screw type, used in air conditioning equipment in motor vehicles, each valued over $88 but not over $92 per unit (described in statistical reporting number 8414.30.8030)

(6) Structural components for industrial furnaces (described in statistical reporting number 8514.90.8000)

(7) Aluminum electrolytic capacitors, each valued not over $3.20 (described in statistical reporting number 8532.22.0085)

(8) Rotary switches, rated at over 5 A, measuring not more than 5.5 cm by 5.0 cm by 3.4 cm, each with 2 to 8 spade terminals and an actuator shaft with D-shaped cross section (described in statistical reporting number 8536.50.9025)

(9) Rotary switches, single pole, single throw (SPST), rated at over 5 A, each measuring not more than 14.6 cm by 8.9 cm by 14.1 cm (described in statistical reporting number 8536.50.9025)

(10) Zinc anodes for use with machines and apparatus for electroplating, electrolysis or electrophoresis (described in statistical reporting number 8543.30.9080)

(11) Weather station sets, each consisting of a monitoring display and outdoor weather sensors, having a transmission range of not over 140 m and valued not over $50 per set (described in statistical reporting number 9015.80.8080)

(12) Multi-leaf collimators of radiotherapy systems based on the use of X-ray (described in statistical reporting number 9022.90.6000)