New Tariff Product Exclusions and Possible Reductions

August 14, 2020

Trump Administration Announces Tariff Exclusions and Investigates Reductions

The Trump administration recently announced the results of two reviews that will impact the amount of tariffs paid by outdoor companies on certain products.

China 301 Product Exclusion Extensions and Expirations

The Office of the United States Trade Representative (USTR) announced that it was extending 266 China 301 product exclusions from List 3. As a result, importers of those products will continue to be excluded from the 25 percent punitive tariff.

Originally set to expire on Aug. 7, 2020, these exclusions will now remain in place through Dec. 31, 2020, and cover a number of outdoor products including the following:

  • Certain camp chairs
  • Bicycles
  • Backpacks and duffel bags
  • Outdoor cooker kits

You can find a full list of the extensions here. To continue to claim this exclusion, importers must now use HTS 9903.88.56. The remaining 744 exclusions not extended expired on Aug. 7, and importers will have to pay an additional 25 percent tariff on top of the normal tariff rate.

Miscellaneous Tariff Bills

The Trump administration also completed its investigation into a package of miscellaneous tariff bills (MTBs) that, if approved by Congress, will help lower costs for outdoor companies by suspending or reducing certain import tariffs for a three-year period (2021-2023).

Eight footwear MTBs developed and submitted by OIA, covering a wide range of outdoor performance footwear, were included in the report submitted to Congress. A vote on the package of all MTBs is expected by the end of the year. You can review the product descriptions and the possible new duty dates for each of these MTBs here.

MTBs reduce or suspend import duties on certain products, including inputs and some finished products, for three years. These petitions are fully vetted to ensure that there is no domestic production and do not cost more than $500,000 each.

Outdoor companies have successfully utilized past MTB rounds to save a total of more than $40 million, which led to lower costs, product innovation and more American jobs.