Section 301 Tariffs

News agencies are reporting that the Biden Administration could soon “reconfigure” “Section 301” tariffs placed on certain imported goods from China. 

What can this reconfiguration mean for your business?


The US is reviewing tariffs on certain imported Chinese products established in 2018 and 2019 in a move to help ease inflation.


Also called 301 duty exclusions, the goal is to lower tariffs on some consumer items to “bring down the prices of things that people buy”, while increasing tariffs on other commodities and, perhaps, reopening the exclusion process.


But what can an importer do today to mitigate the effects of these extra costs on their imported goods?


How to Determine 301 Exclusion Eligibility 


To start, understand whether your products are eligible for an exclusion from the extra tariffs.


Next, leverage every opportunity to apply for refunds of China tariffs paid in error.


Finally, make sure your products are classified properly and assess opportunities to lower duty costs while maintaining compliance.


Below are three case studies to help you discover how to find out if you are eligible.


Case Study One:

301 Exclusion eligible, but my Customs broker didn’t notify me. Costs were lowered by 25%.


All importers, whether the original applicant or not, are eligible for 301 Duty exclusions from China tariffs if their goods meet the description and classification of the approved waiver of duties.


Many Customs brokers rely on the importer to do their research and notify them if their goods are eligible for an exclusion.


If you are paying China tariffs on your products and haven’t previously been reviewed for exclusion opportunities, be sure to do so today!


BGI’s Customs brokerage resource recently reviewed a product on behalf of an importer and discovered it’s eligible for an exclusion from the 25% tariff the importer was previously paying.


Case Study Two:

Eligible for a section 301 duty refund on prior Customs entries. An estimated $225,000 was recovered.


If you are importing products eligible for a China tariff exclusion, but your company paid China tariffs on previous imports, you may have an opportunity to file for a refund of those additional Section 301 duties that were paid in error.


BGI’s Customs brokerage resource recently helped an importer, eligible for an exclusion, file for a refund that will recover more than $200,000 in duties.


BGI’s team will help you gather the required data to make the assessment and coordinate with the licensed broker to help file for the refunds.


Case Study Three:

Goods classified improperly by the previous broker, and now eligible for a 301 exclusion.


If a product with a classification and description matching your product is eligible for an exclusion, but your goods were previously improperly classified, the right compliance resource can help to assess the risks and opportunities associated with making the appropriate filings with CBP to bring your import program into compliance and save you money for the long haul.


Don’t delay. Contact BGI to get started today.


We’ll help you gather the right information, talk through a plan, and connect you with the right resources to ensure you’re not leaving money on the table and to make certain that your import program is compliant.

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