US importers of certain machinery used in domestic manufacturing may petition for Section 301 duty relief
The United States Trade Representative (USTR) has now published a final notice in the Federal Register announcing the Section 301 tariff exclusion process for US imports of certain machinery of Chinese origin. US companies importing machinery classified under chapters 84 and 85 of the Harmonized Tariff System of the United States (HTSUS) that is used in domestic manufacturing can participate in the request process. The full listing of affected machinery is available in Annex E of the notice. Some of the primary items include:
- Industrial furnaces and dryers
- Coal or rock cutters
- Offshore oil and natural gas drilling and production platforms
- Injection molding machines
- Textile spinning machines
- Metal working machines
- Drilling, boring and milling machines
- Hydraulic presses
- Industrial robots
- Machines used in semiconductor production
The window for submitting an exclusion request is now open, running from Oct. 15, 2024, through March 31, 2025. If granted, the tariff exclusion will become effective on the date of publication in the Federal Register and will expire on May 31, 2025. Submitting requests as quickly as possible will enable importing companies to enjoy maximum benefit if the request is granted, reducing the additional tariffs of up to 25% to 0% in many cases.
How RSM US can help
With their many years as corporate leaders and subject-matter expert consultants, RSM’s Trade Advisory team members have proven experience in assisting businesses in submitting successful tariff exclusion requests. In this case, a temporary exclusion of Section 301 duties may be requested through the USTR web portal. Among others, the request must include information such as a detailed physical description of the product, an accurate reference to the 10-digit HTSUS subheading and rationale for the exclusion.
Importantly, failure to provide enough detail for U.S. Customs and Border Protection (CBP) to consistently identify and correctly classify the product at the time of entry will result in a denial of the request. To ensure an accurate and complete exclusion request is prepared and filed, the RSM Trade Advisory team can guide you through the process by:
- developing a comprehensive physical description of the product;
- building compelling rationale for why the exclusion request should be granted;
- compiling comprehensive supporting materials to substantiate the claim; and
- providing proposed tariff language and other critical information to describe the product.
Please connect with any RSM Trade Advisory team professional to set up a rapid assessment of the opportunity to participate in this beneficial process.
