onse or 15 days after the closing of the 30-day response period.In the October Notice, USTR states that it “will evaluate each request on a case-by-case basis, taking into account the asserted rationale for the exclusion, whether the exclusion would undermine the objective of the Section 301 investigation, and whether the request defines the product with sufficient precision.”Any approved exclusion will be effective starting from the date of publication of the exclusion determination in the Federal Register and will extend through May 31, 2025. USTR is accepting exclusion requests on a rolling basis and will periodically announce decisions on pending requests.Companies and trade associations should carefully evaluate with counsel whether to submit an exclusion request, or file a response supporting or opposing requests filed by others._______________ USTR, Notice of Modification: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property and Innovation, 89 Fed. Reg. 76581, 76589 (Sept. 18, 2024). USTR, Procedures for Requests To Exclude Certain Machinery Used in Domestic Manufacturing From Actions Pursuant to the Section 301 Investigation of China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property and Innovation, 89 Fed. Reg. 83755, 83756 (Oct. 17, 2024).[View source.]

in the past five years. If such purchases have been made, the requesting party should explain why sources outside of China are no longer available; andA discussion of whether the machinery is strategically important, related to “Made in China 2025,” or related to other Chinese industrial programs.All exclusion requests must be submitted by March 31, 2025, and submissions will be examined by USTR on a rolling basis. Any exclusions granted by USTR will be published in the Federal Register. Granted exclusions will take effect on the date that USTR’s determination is published in the Federal Register and will be available through May 31, 2025.ONLY CERTAIN SPECIFIED HTSUS Subheadings ARE eligible for exclusion REQUESTSUSTR published a list of the 317 8-digit subheadings that are eligible for this exclusion process in its September 18 Federal Register notice. SeeNotice of Modification: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property and Innovation, 89 Fed. Reg. 76581, 76609-76614 (Annex E) (Sept. 18, 2024). This underscores the need for interested parties to validate their tariff classifications before submitting any exclusion requests to USTR.EXCLUSION REQUESTS WILL BE SUBJECT TO A COMMENT AND REBUTTAL PROCESSInterested parties may respond in support or opposition to exclusion requests. Comments must be filed 30 days from the date that a request is posted on USTR’s online portal. The party who requested the applicable exclusion will be able to reply to any such comments within the later of 15 days after the posting of a response or 15 days after the closing of the 30-day response period.KEY TAKEAWAYSThis new process provides interested parties with the opportunity to request exclusions from the tariffs on certain specified Chinese-origin machinery that will be used in domestic manufacturing in the United States. USTR will consider exclusion requests on a rolling basis and submissions must be filed by March 31, 2025. Any granted exclusions will not be retroactive and would only be avail