China is considering a product exclusion process for the retaliatory tariffs it imposed on certain US-origin goods in response to the recent US Section 301 tariffs. The product exclusion process under development aims to show that China intends to use a public and transparent process to make decisions on which tariff items and/or products should be excluded from the retaliatory tariffs.
Limited details are available at this point. The Ministry of Finance and certain industry organizations or "chambers" might play important roles in the exclusion process. Parties eligible to submit an exclusion request may be limited to Chinese interested parties. The exclusion is likely to be granted on a product-specific basis, with due consideration given to whether the related 8-digit code is generally proper for exclusion. Whether there exists an adequate substitute for the US product could be a consideration. These details are subject to change until an official announcement is made, which may happen soon.
Originally published 30 August 2018
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2018. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.