As of March 2, 2020, the application under the new exclusion process can be made via the online application system.
Once approved, no retaliatory tariffs against Section 301 will be imposed on the goods being applied and imported by the applicant within an approved time period of one year.
Scope:
1. The announcement provides an eligible goods list with 696 tariff items. For goods on the list, applicants may apply for exclusions from the additional tariffs.
2. According to the announcement, applicants may also apply to add the items to the exclusion list which are not included in the above list.
3. If subject to below circumstance, an additional exclusion application is needed:
a) The US imports are subject to existing import duty-free policies
b) Goods are imported through express channels (low-value goods with simplified customs formalities)
c) The US imports have been excluded in the existing exclusion process
Highlights: The new “market-based” exclusion is on an applicant basis and only applicable to a certain approved “purchase plan”. This differs from the existing “general” exclusion process which is product-based.
Existing "General" Exclusion Process
Applicants - Enterprises in China or their industries/business associations engaged in the importation, production or usage of the relevant goods.
Application Approach and Time - Online application: http://gszx.mof.gov.cn
1st batch – Jun.3 to Jul.5 2019;
2nd batch – Sep.2 to Oct. 18 2019;
Others - To be announced
Required Information - Facts and data related to the following perspectives:
- Difficulty obtaining the product from sources other than the U.S.;
- Material injury from the additional tariff to the applicant;
- Structural impact of the additional tariff on relevant industries.
Effectiveness - For goods included in the exclusion list (regardless of importers and import amounts): Starting from the date when the exclusion comes into effect, the additional tariffs on U.S. imports can be excluded for one year; Importers can apply for refunds of any additional tariffs paid on certain goods which stipulated in the announcements.
Import Declaration - No special requirements
New "Market-based" Exclusion Process
Applicants - Enterprises in China who plan to purchase and import the relevant goods from the U.S.
Application Approach and Time - Online application: http://gszx.mof.gov.cn
- Starting from Mar. 2 2020
Required Information - HTS code includes those in the eligible 696 tariff items list:
The HS code of the goods for exclusion and information related to the applicant's purchase plans; Applicant needs to submit a monthly purchase plan by end of every month prior to import.
HTS codes not included in the eligible 696 tariff items list:
- An additional explanation which should refer to the required information of "General" exclusion process.
Effectiveness - For an approved applicant: Starting from the date when the approved application comes into effect, the additional tariffs on U.S. imports of the approved goods by the applicant within the approved amount can be excluded for one year; Any additional tariffs already paid cannot be refunded.
Import Declaration - An approved application can obtain an 18-digits code, which needs to be filled in the customs declaration form when the applicant imports the goods.
Sources: The Ministry of Finance for China, BDP International
Should you have any questions or concerns, please reach out to your local BDP representative.
