USTR Renews Some Exclusions, Signaling 301 is Here to Stay

Dec. 20, 2022
By: Pietro N. Bianchi

The Office of the United States Trade Representative (USTR) renewed Section 301 duties on 352 products from China that were scheduled to expire on December 31, 2022. The Federal Register notice states that the majority of Section 301 duties will now last until September 30, 2023.

Per 19 U.S.C. 2417(c)(3), the USTR is required to periodically review: (A) the effectiveness in achieving the objectives of Section 301 of (i) such action, and (ii) other actions that could be taken (including actions against other products or services), and (B) the effects of such actions on the United States economy, including consumers. Within this framework, the USTR must consider whether, despite the Section 301 duties, target products remain available only from China and whether the imposition of Section 301 duties would impact or result in severe economic harm to U.S. interests.

Back in October 2021, the USTR determined, with consideration of public comments, that reinstatement of Section 301 duties is appropriate based on (1) the unavailability of particular products outside of China and (2) possible severe economic harm. Upon further public comment and reconsideration, the USTR determined to renew Section 301 duties on 352 products for an additional nine months. The USTR did let Section 301 duties on a portion of the 549 previously excluded products expire. However, with this renewal the USTR further indicates that Section 301 duties are here for the foreseeable future. Continuing to ignore these less than subtle suggestions for business to get their supply chain out of China could lead to expensive consequences.

If you have questions about Section 301 or supply chain risk do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.