On Wednesday, October 16, 2024, the Office of the U.S. Trade Representative (USTR) published a Federal Register notice announcing that the agency opened an electronic portal for exclusion requests for "Certain Machinery Used in Domestic Manufacturing" on October 15, 2024, and setting forth the procedures for submitting requests. If granted, exclusions under the Section 301 tariffs function to temporarily exclude identified products from application of the tariffs for the designated period of applicability of the exclusions.
This opportunity to submit exclusion requests for machinery used in domestic manufacturing was instituted as a result of the Four Year Review mandated by statute. In May of this year, the president directed USTR to establish a process by which interested persons may request that particular machinery used in domestic manufacturing be temporarily excluded from Section 301 tariffs, particularly solar manufacturing equipment. As a result, in June 2024, members of the public were invited to comment on proposed subheadings under Chapters 84 and 85 of the Harmonized Tariff Schedule of the United States (HTSUS) eligible for consideration. On September 18, the USTR published a list of HTSUS subheadings for which interested parties could request Section 301 exclusions under the machinery exclusion process. The list of goods eligible for potential tariff exclusions includes machinery use in farming, paper goods and textile production, manufacturing of clothing and footwear, machines used in heavy manufacturing, and more.
USTR's docket for submitting exclusion requests is open for submissions from October 15, 2024 through March 31, 2025. Interested persons will be able to respond to the requests of other submitters.
Venable's International Trade and Logistics Practice Group is available to help your company evaluate how the evolving Section 301 tariffs may impact your operations and can assist you in submitting requests for tariff exclusions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
