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Key Takeaways from 301 Federal Register notice

We are only a few days into February, and already so much has happened in the world of international trade. In this first post we wanted to start with recent developments in the US and China trade agreements and how this affects imports coming into the US.

Seems that the US Government has decided to show importers some love effective on February 14th, 2020! That’s right LOVE by allowing for exemptions to recent tariffs starting Valentine’s Day. However, if your commodity is listed on the upcoming 301 CBP Exemption list, simply look up the secondary tariff code for the exclusion and include it on your Entry. With this listing you would then be eligible for the tariff exclusion. Several industries are highlighted, but we have decided to cover the exclusions within the furniture industry as a main example.

Section 301 Tariff Exclusions: Furniture Industry:

The Federal Register notice provides an exclusion from the 25% tariff assessed on imports from China classified in 9401.61.4011 if they meet a specific description, such as “upholstered dining chairs with wood frames other than teak”. Importers that meet the description can seek retroactive refunds on the tariffs paid for these products back to when the tariffs began in September 2018 and can also file the exclusion for future imports as well. The secondary HTS code that needs to go on file to be exempt from this 25% is number 9903.88.36.

The Federal Register notice also provides an exclusion classified in 9401.79.0015. described as folding chairs with aluminum frames, each comprising a seat of polyester rib stop fabric and polyester netting and an aluminum frame, weighing not more than 600grams. These are now on the exclusion list under the secondary HTS code 9903.88.35.

The Federal Register notice also provides an exclusion classified in 9401.61.6011. described as Upholstered seats with wooden frames other than chairs, not of cane, osier, bamboo or similar materials, each measuring at least 144 cm but not more than 214 cm in width, at least 81 cm but not more than 163 cm in depth.

For brokers and importers, just remember that in order to claim the exclusion your commodity must fit the criteria perfectly. To find out if your commodity qualifies, we at KlearNow are happy to provide the necessary tools for claiming your exclusion. One of the features of our product, is that you won’t have to worry about commodity codes ever again. We got you covered.

Sources: https://ustr.gov/sites/default/files/enforcement/301Investigations/%24200_Billion_Exclusions_Granted_January_31.pdf