USTR Publishes Notice for Proposed Modifications to China Section 301 Duties
The United States Trade Representative (USTR) published a notice in the Federal Register on May 28, 2024 inviting comments regarding proposed modifications to the Section 301 duties on goods from China and the exclusion process for certain machinery.
Comments may be submitted via an electronic portal that will be open from 5/29/24 – 6/28/24. The USTR comments portal provides a preview of the docket questions for the invited comments
The proposed actions fall into three categories. Please refer to the notice for details.
1. Add or increase Section 301 duties, with some taking effect on August 1, 2024 and others delayed until January 1, 2025 or January 1, 2026. Annex A (beginning on page 5 of the Federal Register Notice) provides the list of 382 HTSUS subheadings and 5 statistical reporting numbers in the proposal.
Product Category | Section 301 Rate | Effective Date |
Battery parts (non-lithium-ion batteries)Electric vehicles | 25% | 8/1/2024 |
Electric vehicles | 100% | 8/1/2024 |
Facemasks | 25% | 8/1/2024 |
Lithium-ion electrical vehicle batteries | 25% | 8/1/2024 |
Lithium-ion non-electrical vehicle batteries | 25% | 1/1/2026 |
Medical gloves | 25% | 1/1/2026 |
Natural graphite | 25% | 1/1/2026 |
Other critical minerals | 25% | 8/1/2024 |
Permanent magnets | 25% | 1/1/2026 |
Semiconductors | 50% | 1/1/2025 |
Ship to shore cranes | 25% | 8/1/2024 |
Solar cells (whether or not assembled into modules) | 50% | 8/1/2024 |
Steel and aluminum products | 25% | 8/1/2024 |
Syringes and needles | 50% | 8/1/2024 |
2. Identify tariff subheadings in chapters 84 and 85 covering particular machinery used in domestic manufacturing for which temporary exclusions through May 31, 2025 may be granted. Annex B (beginning on page 28) provides the list of potentially eligible tariff provisions. Procedures for requesting exclusions will be published in a separate notice.
3. Grant 19 temporary exclusions through May 31, 2025 for certain solar manufacturing equipment. Annex C (beginning on page 40) provides the list of impacted items.