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Colleagues Urge U.S. Trade Representative to Help U.S. Manufacturers, Restart the Exclusion Process for Imports Subject to Tariffs on China

June 3, 2021

U.S. Senators Rob Portman and Tom Carper, along with 38 other members of the Senate, sent a letter to U.S. Trade Representative Katherine C. Tai, asking her to restart the exclusion process for imports from China subject to tariffs under Section 301 of the Trade Act of 1974. The Trump administration set up an exclusion process to help U.S. manufacturers and businesses receive relief from the tariffs when an imported good was not available outside of China, or when the tariffs caused severe economic harm to U.S. industry. Unfortunately, those exclusions expired at the end of 2020, and the Biden administration has not restarted a process for businesses to apply for new exclusions.

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The U.S. Department of State, the U.S. Department of Commerce, and other government agencies has issued an updated Xinjiang Supply Chain Business Advisory to highlight the heightened risks for businesses.  The advisory warns U.S companies that do business with and have investment links to Xinjiang may be at risk of violating the U.S. law. Due to the entities complicit in forced labor and other human rights abuses there and throughout China. Given the severity and extent of these abuses, businesses and individuals that do not exit supply chains, ventures, and/or investments connected to Xinjiang could run a high risk.

Beginning October 1, 2021, the Animal and Plant Health Inspection Service (APHIS) will start enforcing Lacey Act import declaration requirements on 27 new tariff lines. This marks the sixth phase of Lacey Act declaration enforcement, which was delayed from October 2020 due to the COVID-19 pandemic.

Some of the new products include essential oils; trunks, cases and suitcases; oriented strand board and wooden containers and pallets; musical instruments; and monopods, bipods, tripods, and more.

The Court of International Trade has granted a preliminary injunction which stopped the liquidation of unliquidated entries subject to litigation over List 3 and List 4A Section 301 China tariff litigation. The suspension of liquidation only applies to importers who are plaintiffs in the action.

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