On October 21, 2019 local time, the U.S. Trade Representative's Office(USTR) issued an announcement confirming that part of List 4A, which will impose a 15 % tax rate on September 1, 2019, will be launched. The issue of product exclusion has not yet been addressed in part List 4B of the 300 billion list, which is scheduled to enter into force on 15 December 2019. And lucky that the JUNON products, switch & socket, distribution box and LED lights are not in the list.
According to the announcement, this product exclusion application will begin on October 31, 2019, and the deadline will be January 31, 2020. Product exclusion applications will be made through the Https://exclusions.ustr.gov network channel.
Applicants should submit product exclusion applications in time before the deadline, and other stakeholders can submit support or opposition comments within 14 days after the product exclusion application is published on USTR. For each comment, the parties may respond within 7 days of the expiration of the 14-day comment period or 7 days after the comment is made.
USTR provides a product exclusion application form. Applicants are required to submit(1) contact information,(2) product 10 US Customs Code,(3) whether the product is within the scope of anti-dumping or countervailing duties issued by the U.S. Department of Commerce, and(4) detailed product description, (5) The trade link of the applicant,(6) the fungible product in the United States,(7) the fungible product in a third country, and(8) the attempt to find an alternative product, (9) the quantity and amount of the product originating in China from 2017 to the first half of 2019, and(10) the quantity and amount of the product originating in a third country from 2017 to the first half of 2019. (11) the quantity and amount of the product originating in the United States from 2017 to the first half of 2019,(12) the company's revenue in 2018, the first half of 2018 and the first half of 2019,(13) whether the product is the final product or the production of the final product. (14) whether the imposition of additional tariffs has caused serious economic damage to your company or other US interests,(15) other supporting information,(16) Have you applied for the exclusion of products from the 34 billion list, the 16 billion list and the 200 billion list, (17) Whether the product is of strategic importance or related to "Made in China 2025" or other Chinese industrial policies,(18) Other relevant annexes.
It is worth noting that any approved exclusion application will date back to September 1, 2019 and will be valid for one year. This means that once part of the List 4A product is excluded, the tax levied on the 15 % tax rate can be retroactively refunded.
I would advise the exporting enterprises to launch the American Importers, Customers and American Business Association to submit the exclusion application in a timely manner in accordance with the above requirements. USTR has approved multiple batches of product exclusion applications for the 34 billion list, 16 billion list and 200 billion list items subject to additional tariffs.