Section 301 Tariffs: A Plain-English Guide for Importers

If you import from China, Section 301 tariffs have almost certainly touched your business. They are one of the largest additions to U.S. import duty in years, and they are also one of the biggest sources of recoverable overpayment. Here is what every importer should understand.

What Section 301 is

Section 301 refers to a section of U.S. trade law used to impose additional tariffs on many goods originating in China. The most common rate is 25 percent, applied on top of the normal base duty rate. Because the tariffs cover thousands of HTS lines, they reach a huge range of products.

How the duty stacks

The key thing to understand is that Section 301 does not replace your base duty. It stacks on it. A product with a modest base rate can suddenly carry that rate plus 25 percent. Even goods that would enter duty-free at the base level end up with a 25 percent charge, which surprises a lot of importers reviewing their entries for the first time.

Where the refunds come from

Recovery usually comes from exclusions. The USTR granted product exclusions that removed specific goods from the Section 301 tariff for defined windows. Importers entitled to an exclusion who did not claim it paid duty they did not owe, and that duty is recoverable.

Finding your exposure

Because Section 301 spans so many products, most importers with China sourcing have some exposure. The question is how much of it is recoverable. A specialist review pulls your ACE data, checks it against applicable exclusions, and files. Start with a free eligibility check to see where you stand.