Tariff Commission Announcement  No. 2 of February 17, 2020, establishes a procedure to apply for exclusions for “market-based procurement of tariff-collected commodities” for goods from the United States. It appears that exclusions will also apply to goods subject to the Sec. 301 countermeasures. An application must be made after March 2, 2020, on the Ministry of Finance’s exclusion declaration website, by a Chinese enterprise that intends to sign a contract to purchase and import certain goods from the United States. The exclusion requests must generally be for goods on list attached to the announcement. However, for products that are not on the list, the applicant may submit an application for adding products. The Tariff Commission will review the valid applications, and notify the applicants of the results of the exclusions in a timely manner through the exclusion declaration system. The approved quantity of imports will be excluded for a period of one year. Excess amounts will be subject to the additional duties and taxes. The exclusions are not retroactive so duties and taxes paid before an exclusion is granted will not be refunded. The above-mentioned exclusion measures shall also apply to the overfilled commodities clearly stipulated in the import contract and the quantity is within 10% (inclusive). There are other requirements as well.
On February 28, 2020, the Office of the Customs Tariff Commission of the State Council issued the “Operation Guide for the Application of Exemption of Market-based Procurement of Tariff Commodities to the United States”. Enterprises can download the Guide from the website of the Tariff Policy Research Center of the Ministry of Finance. On March 2, 2020, the US tariff-exclusion declaration system will begin accepting market-based purchase exclusion applications. Companies are welcome to register and actively file applications.