China Tariffs: Tranche 3 Exclusion Process Now Open, First Travel Goods Petitions Rejected as # of Petitions Grow, Process Closes September 30
On June 30, the U.S. government opened the portal to request exclusions (details, web portal) from Tranche 3 tariffs, including the 25% tariffs on travel goods. As of August 14, 20 companies have filed a combined 81 petitions requesting exclusions for certain types of travel goods (out of a total 6,852 petitions filed to date). Please go to the TGA/AAFA July 2 webinar on the exclusion process for more details (letter to USTR, webinar recording).There will be a 14-day period, once a petition is live on the portal, during which the public can file a response (in opposition or in support). That means your company can file responses in support. For example, some travel goods petitions were filed on August 14, which means the 14-day response period for those petitions closes August 28. On August 2, the Office of the U.S. Trade Representative (USTR) announced that it had granted exclusions for 15 petitions; none were in the travel goods space. USTR has also denied 94 petitions to date, including 12 in the travel goods space. None of the denied petitions had responses in support of the petition. Regrettably, two of them were denied even though there was no opposition. Further, many were denied not because there was U.S. production but because of production in another third country, which appears to undermine the stated purpose of the exclusion process. Nevertheless, TGA strongly encourages interested companies to continue to file their own petitions and/or SUPPORT existing petitions by filing responses in support of the petitions we file. The deadline to file petitions is September 30.