April 2020

 

ARE YOU ELIGIBLE FOR A TARIFF REFUND?

In 2017, President Trump responded to an investigation into questionable Chinese trade practices, specifically as it relates to innovation, intellectual property and technology products. Since many products are sourced and imported from China - especially parts for laptops, phones and the like - this response is relevant to many businesses in the United States.

Learn more about section 301(b) and tariff exemptions

If you rely on importing any products or parts from China as part of your business growth strategy, some or all of these parts might be subject to a tariff increase. However, there’s also some good news: you could also be eligible for a tariff refund if the specific products are included in one of the product exclusion product lists.


HOW TO LOOK UP PRODUCTS

Section 301(b) of the Fair Trade Act of 1974 allows for action to be taken against Chinese trade practices that are deemed burdensome to United States commerce. The increase on tariffs for certain imports from China to the United States is President Trump’s response to the investigation by the United States Trade Representative.

Imported parts and products are now organized into four specific lists. Each product has a designated HTS (Harmonized Tariff Schedule) code. These codes are administered by the U.S International Trade Commission, who track imports by product. If you know your product or part’s HTS number, you can see the assigned tariff for that product. Similarly, if your product is exempt from these additional tariffs, you can search by HTS code for verification purposes as well.


PRODUCT EXCLUSION LISTS

If you paid an additional tariff on a product that is on one of the product exemption lists, you may be eligible for a refund.

Below you can find some products from each List that are currently exempt. You can find more information about whether your product is exempt by either searching using the HTS number or referring to the United States Trade Representative Website.

LIST 1

  • Centrifugal pumps for oil extraction

  • Wheel and tire assemblies

  • Paper making machines/parts

  • Plastic cutting machines

See the full list and USTR documentation here.

LIST 2

  • Self adhesive tape for metal, shelf liners, and plastic

  • Iron or steel gate posts

  • Dimmer lights

  • Handheld electronic thermometers

See the full list and USTR documentation here.

LIST 3

  • Paper/corrugated paperboard boxes

  • Marble sinks, baths

  • Replacement windows for vehicles

  • Faucet parts

See the full list and USTR documentation here.

LIST 4

  • Plastic wound coverings

  • Textile ice bags for injuries

  • Identification wristbands

  • Sterile drapes for operating rooms

See the full list and USTR documentation here.

There are many product exclusions for each list - these are just a few of the kinds of products that are currently exempt from the additional tariffs. For more detailed information on these lists, you can refer to the U.S Trade Representative’s website.

HOW CAN JF MORAN HELP YOU?

We hope this overview of Section 301(b) has been helpful to you. Our team monitors the four exclusion lists constantly, and we even match the HTS code for your product to verify eligibility for a tariff refund. Our goal is to help you grow your business through streamlining the importing process - and navigating the details behind trade tariffs with Chinese-originating imports is just one aspect of that.

If you have questions about Section 301 or want to know if your product qualifies for a tariff exclusion, contact us or our resident tariff expert Scott Chipperfield today!

 
Andrew LangloisJF Moran