China Section 301 Tariffs Continue Through USTR Review

China Section 301 tariffs remain a material cost and compliance issue for U.S. importers. The July and August 2018 actions have continued into another statutory review cycle, preserving current duty exposure while leaving open the possibility of future modifications to tariff coverage, rates, exclusions, or related enforcement priorities. ## Why the China Section 301 Tariffs Remain in Effect The two actions covering Chinese-origin products did not terminate at their applicable four-year anniversaries in 2026. Representatives of domestic industries benefiting from the tariffs submitted timely continuation requests, satisfying the statutory condition required to keep both actions in place. ### Timely Requests Prevented Automatic Termination The continuation process covered the action originally effective July 6, 2018, and the action originally effective August 23, 2018, including subsequent modifications. For the July action, USTR received 68 requests from domestic producers and 18 from trade associations. For the August action, it received 57 requests from domestic producers and 19 from trade associations. Those requests prevented the actions from terminating automatically. The result is continuity, not a new tariff program. Importers should generally continue applying the relevant Chapter 99 provisions and additional duties to covered Chinese-origin merchandise unless a valid exclusion or other legal exception applies. Continuation also does not mean that the tariff program is permanently fixed. The actions remain subject to further modification through the statutory review process. USTR could ultimately retain the measures without significant changes, alter product coverage, adjust duty rates, revise exclusions, or pursue other actions consistent with the objectives of the underlying investigation. ### Continuation Should Be the Base Planning Assumption For budgeting and landed cost purposes, importers should treat the tariffs as continuing into 2027 unless an effective change provides otherwise. Procurement teams should not assume that the review itself suspends duties or creates a grace period. Customs brokers should likewise maintain existing entry controls, Chapter 99 validation, country-of-origin review, and exclusion logic. Any future change will need to be evaluated by effective date, entry date, tariff classification, exclusion language, and CBP implementation instructions before entry processing is adjusted. ## What the Four-Year Review Means for Importers USTR will conduct a statutory review of the continued actions and is expected to establish a separate process for public comments. The review will generally examine whether the tariffs have been effective, whether different actions may be appropriate, and how the measures affect the U.S. economy, including businesses and consumers. ### The Review Could Produce Targeted or Broad Changes The review should not be treated as a predetermined decision to remove or retain every tariff line. It creates a formal opportunity to assess the actions and consider alternatives. Potential outcomes could include maintaining the existing structure, revising selected tariff lines, adjusting rates, modifying exclusions, or changing the treatment of particular products or industries. Importers considering participation should begin preparing before the comment window opens. Useful internal data may include duties paid by HTSUS classification, annual import volume, sourcing alternatives, supplier concentration, domestic availability, customer price effects, and operational consequences. Submissions are generally more persuasive when they connect tariff treatment to verifiable commercial and economic effects. Companies should also distinguish policy advocacy from customs compliance. Even if an importer intends to request relief, current duties remain payable until a legally effective modification applies. Expected policy changes should not be incorporated into entry filing before their effective date. ### Landed Cost Models Need Multiple Scenarios Trade directors should maintain a base case that assumes continued Section 301 duties. Alternative scenarios can model partial relief, product-specific changes, or higher costs resulting from modified coverage. The analysis should account for tariff stacking where multiple additional duty programs apply. It should also separate customs value, ordinary duty, Section 301 duty, merchandise processing fees, freight, brokerage, and other supply chain costs. This structure allows finance and sourcing teams to understand which costs would change if USTR modifies the actions. Country of origin deserves particular attention. Section 301 applicability generally turns on origin rather than the country of shipment, invoicing, or final export. Supply chain changes therefore require a defensible substantial transformation analysis rather than a simple routing or supplier change. ## Managing Exclusions, Entries, and Duty Drawback Continuation of the tariff actions affects more than future purchase orders. It also increases the importance of accurate exclusion claims, entry review, recordkeeping, and duty recovery. Importers and brokers need controls that connect current HTSUS classifications with the applicable Chapter 99 provisions and exclusion language. ### The 8479.90.9591 Exclusion Requires Attention A conforming amendment updated U.S. note 20(vvv)(i)(20) in subchapter III of Chapter 99 to cover statistical reporting number 8479.90.9591. The change aligns the exclusion with HTSUS statistical reporting changes effective July 1, 2026, while generally preserving the intended product coverage. The amendment applies to qualifying goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on July 1, 2026. Brokers handling merchandise under 8479.90.9591 should review implementation guidance and confirm that entry systems apply the revised reporting number and exclusion note correctly. Importers should identify entries filed since July 1, 2026 that may qualify. A review should verify the complete product description, tariff classification, origin, exclusion language, Chapter 99 reporting, entry date, and supporting records. Statistical alignment alone does not establish eligibility. The imported article must satisfy the exclusion's complete scope. If an eligible entry was filed without the exclusion, the importer and broker should evaluate the correction mechanism available for that entry's status and timing. Any correction should be supported by classification and product records rather than based only on the revised statistical suffix. ### Continued Duties Preserve Drawback Opportunities Section 301 duties are generally eligible for duty drawback when the statutory and regulatory requirements for the applicable drawback provision are met. Continued tariff collection therefore preserves potential recovery opportunities for businesses that export or destroy qualifying merchandise. Importers should evaluate drawback at the transaction level. Relevant data commonly includes import entry lines, Chapter 99 duties, merchandise identifiers, inventory activity, exports, destruction records, and proof of export. Substitution methods may be available in appropriate circumstances, but eligibility depends on the drawback provision, merchandise facts, time limits, and recordkeeping. Customs brokers offering drawback services can help importer clients convert continuing Section 301 exposure into a structured recovery program. The strongest programs identify eligible activity early, preserve data before it becomes difficult to retrieve, and reconcile import and export records consistently. ## Frequently Asked Questions ### Did the China Section 301 Tariffs Expire in 2026? No. The July 6, 2018 and August 23, 2018 actions, as modified, did not terminate during the 2026 review cycle. Domestic producers and trade associations submitted timely continuation requests, so covered imports generally remain subject to the applicable additional duties. ### Does the Four-Year Review Suspend Section 301 Duties? No. The review does not itself suspend collection. Importers should continue reporting the applicable Chapter 99 classifications and paying Section 301 duties unless merchandise qualifies for an exclusion or another legally effective change applies. Policy expectations are not a basis for omitting duties from an entry. ### Can Importers Still Claim China Section 301 Exclusions? Importers may claim an exclusion when it remains effective and the merchandise falls within its complete scope. Eligibility generally depends on the applicable product description, HTSUS classification, Chapter 99 note, entry date, and origin. Importers should not rely solely on a matching tariff number. ### What Should Brokers Do About Entries Under 8479.90.9591? Brokers should confirm that entry systems reflect the conforming amendment to U.S. note 20(vvv)(i)(20), monitor CBP implementation instructions, and review potentially affected entries filed on or after July 1, 2026. Any correction should be based on documented exclusion eligibility. ### Are Section 301 Duties Eligible for Duty Drawback? Generally, yes. Section 301 duties may be recoverable when imported merchandise supports a valid drawback claim involving qualifying exports or destruction. The claimant must satisfy the requirements for the applicable drawback provision and maintain records connecting import duties with eligible drawback activity. ### How Should Importers Budget for 2027? The prudent base case is continued Section 301 duty exposure. Importers can maintain additional scenarios for possible rate, coverage, or exclusion changes, but should not recognize projected savings until a modification becomes legally effective and applies to the relevant entries. ## How Stable Software Can Help ### Build a Scalable Section 301 Drawback Program Customs brokers can use DrawbackAI to white-label duty drawback software for importer clients and file claims under the broker's own filer code. This model can help brokers support importers seeking to recover eligible Section 301 duties while retaining control of the client relationship and filing process. Stable Software charges a flat software license and never takes a percentage of the refund. For brokers evaluating how to turn continuing China tariff exposure into a structured drawback service, DrawbackAI offers a software model aligned with broker-led filing and client delivery. Brokers can explore the platform to determine whether it fits their drawback operations and importer service strategy.

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