1. Application Processes
A. Online Submission via USTR Portal
Eligibility Check:
Confirm your product falls under active exclusion lists (e.g., Section 301 tariffs or HTS Chapter 98 exemptions). Use the U.S. Trade Representative (USTR) portal to verify if your goods are eligible.
For example, electronics like smartphones and servers may qualify under recent exemptions for critical minerals or AI-related products .
Registration & Application:
Create an account on the USTR Exclusion Portal and submit a detailed request. Include:
Product description, HTS code, and justification for exemption (e.g., non-availability from non-Chinese sources).
Supply chain analysis demonstrating efforts to source alternatives .
Review & Approval:
USTR reviews applications within 60–90 days. Approved exclusions are valid for 12 months and may be renewable .
B. Attorney Representation
Engagement:
Retain a licensed customs attorney or broker to navigate complex regulations. Provide a Power of Attorney (POA) to authorize legal representation .
Attorneys assist with:
Preparing detailed product descriptions and technical specifications.
Responding to USTR requests for additional evidence.
Appealing denials through the U.S. Court of International Trade (CIT) .
Process Advantages:
Legal experts ensure compliance with evolving rules (e.g., 2025 tariff adjustments on Chinese goods ).
Example: For goods under Section 301 tariffs, attorneys can file a Post Summary Correction (PSC) to claim refunds for previously paid duties .
2. Required Documentation
A. Certificate of Origin
Format & Issuance:
Must be issued by a recognized authority (e.g., Chinese Customs or CCPIT) and include:
Exporter/importer details, product description, and country of origin.
Harmonized System (HS) code and proof of origin criteria (e.g., value-added percentage) .
For preferential tariffs, use forms like GSP Form A or regional trade agreement certificates .
Key Requirements:
For Chapter 98 exemptions (e.g., temporary imports), include a statement of intended use (e.g., "for testing purposes only") .
B. Commercial Invoice
Contents:
Must include:
Transaction value, currency, and terms of sale (FOB, CIF).
Detailed product description matching the HTS code.
Declaration of origin (e.g., "Made in China") .
For repaired goods under HTS 9802.00.80, specify repair costs separately .
C. Additional Evidence
Supply Chain Documentation:
Vendor lists, purchase orders, and letters from suppliers confirming non-availability of alternatives .
Impact Analysis:
Financial statements or market reports demonstrating economic harm from tariffs .
3. Common Pitfalls & Risks
A. Incorrect HTS Classification
Consequences:
Misclassification leads to underpayment or overpayment of duties, triggering CBP audits.
Example: Failing to distinguish between "processed critical minerals" (subject to 232 tariffs) and finished products .
Mitigation:
Use the USITC HTS Database for accurate classification. Consult a customs attorney if uncertain .
B. Inadequate Documentation
Issues:
Missing or incomplete certificates of origin delay customs clearance.
Example: Failing to include a transshipment certificate for goods routed through third countries .
Solutions:
Cross-verify documents with CBP guidelines . Use digital platforms like the China International Trade Single Window for streamlined submissions .
C. Low-Value Misdeclaration
Risks:
CBP’s 3-year retroactive period allows audits of past entries. Penalties can exceed 200% of underpaid duties .
Example: A seller faced $2 million in back taxes for systematically undervaluing shipments below $800 .
Prevention:
Declare full transaction value, including freight and insurance. Avoid splitting shipments to evade thresholds .
D. Ignoring Policy Updates
Recent Changes:
As of 2025, the $800 de minimis exemption for Chinese goods is 取消，requiring formal entry for all shipments .
Partial exemptions for electronics (e.g., servers, smartphones) apply retroactively but require specific HTS codes .
Action:
Monitor USTR and CBP bulletins. Update compliance strategies to align with new rules (e.g., 9801.00.10 for temporary imports) .
4. Leveraging HTS Chapter 98 for Tariff Avoidance
A. Temporary Importation (HTS 9801.00.10)
Conditions:
Goods must be imported for testing, repair, or exhibition.
Provide a bond covering 100% of duties and a written commitment to re-export within 1 year .
Example: A U.S. company imports Chinese machinery for testing, then re-exports it duty-free .
B. Repairs & Alterations (HTS 9802.00.80)
Requirements:
Declare the value of repairs separately from the original goods.
Include a repair invoice and proof of foreign origin .
Exemption applies only to repair costs, not the original value .
C. Exceptions to Chapter 98 Benefits
China-Specific Restrictions:
Goods with Chinese-origin components may still face tariffs on Value-added part. For example, a U.S.-assembled product using Chinese parts may owe 10% on the Chinese value