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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city
MY COLOUR

Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref. : EIC 111/2/18
EIC 111/3
EIC 111/3/13
CR EIC 111/1/13/3

6 October 2021
(Last updated on 2 November 2021)

Dear Sirs,

Commercial Information Circular No. 700/2021

US : Section 301 Tariffs on Mainland Products - Seeking Public Comments on Reinstatement of Certain Exclusions

The US Trade Representative (USTR) posted a notice on 5 October 2021 seeking public comments on whether to reinstate particular product exclusions that previously were extended but had expired. It also invites public comments on the appropriate length of the reinstated exclusions. The official Federal Register (FR) notice was issued on 8 October 2021. All comments must be submitted through the online portal (https://comments.ustr.gov) by 1 December 2021.

DETAILS

2.Since July 2018, the US has imposed additional tariffs on Mainland products worth approximately US$370 billion under the Section 301 investigation in four tranches (Lists 1-3: 25%; List 4A: 7.5%). The USTR also initiated exclusion processes for stakeholders to submit requests for the exclusion of specific products from the additional tariffs and granted exclusions periodically on specific products for about one year or so. Subsequently, the USTR further extended 549 exclusions but they already expired in April 2021.

3.On 5 October 2021, the USTR posted a notice seeking public comments on whether to reinstate the 549 product exclusions that previously were extended. The 549 exclusions are available at:
https://ustr.gov/sites/default/files/files/Notices/Section%20301%20China%20Request%20for%20Comments/Index%20of%20549%20Previously%20Extended%20Exclusions.pdf
It also invites public comments on the appropriate length of the reinstated exclusions. The comment process has the following important dates and features:
  • The online portal for submitting comments will open on 12 October 2021.
  • Commenters first must register on the portal at https://comments.USTR.gov in order to submit a comment either supporting or opposing the reinstatement of a particular exclusion.
  • The deadline for submitting comments is 1 December 2021.

4.The USTR will evaluate possible extension of each exclusion on a case-by-case basis and the focus of the evaluation will be whether the particular product remains available only from China. It will also consider whether or not reinstating the exclusion will impact or result in severe economic harm to the commenter or other US interests. Commenters should address specifically:

  • Whether the particular product and/or a comparable product is available from sources in the US and/or in third countries.
  • Any changes in the global supply chain since September 2018 with respect to the particular product or any other relevant industry developments.
  • The efforts, if any, the importers or US purchasers have undertaken since September 2018 to source the product from the US or third countries.
  • Domestic capacity for producing the product in the US.

5.For details, please refer to FR notice and the USTR's designated webpage.

  • FR notice (8 October 2021):
    https://www.govinfo.gov/content/pkg/FR-2021-10-08/pdf/2021-22062.pdf
  • USTR's designated webpage on reinstatement of certain exclusions:
    https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-china-technology-transfer/china-section-301-tariff-actions-and-exclusion-process/reinstatement-certain-exclusions-previously-extended

ENQUIRIES

6.For enquiries concerning the content of this circular, please contact Miss K Y HO at telephone number 2398 5405.

Yours faithfully,

(Miss Ivy TAM)
for Director-General of Trade and Industry

Note: While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.