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What is Section 301?

Trade Act provision authorizing tariffs in response to unfair foreign trade practices, notably applied to Chinese imports. In the context of U.S. customs and tariff recovery, understanding section 301 is essential for navigating the CAPE refund process and ensuring accurate duty assessment.

Definition

Section 301 of the Trade Act of 1974 authorizes the United States Trade Representative (USTR) to impose tariffs or other trade measures in response to foreign government actions that violate trade agreements or are unjustifiable, unreasonable, or discriminatory and burden U.S. commerce. Most notably, Section 301 tariffs were imposed on hundreds of billions of dollars of Chinese imports beginning in 2018, in response to USTR's investigation into China's technology transfer and IP practices. The tariffs were imposed in four 'tranches' at rates of 7.5% to 25%, affecting approximately $370 billion in annual Chinese imports.

How Section 301 Relates to Tariff Refunds

Section 301 tariffs, alongside IEEPA tariffs, are the two primary tariff categories eligible for CAPE refund claims. The CAPE program was created specifically to process refunds when Section 301 and IEEPA rates are reduced. Tariffi identifies Section 301-affected entries in your ES-003 data by matching HTS codes against the published Section 301 product lists.

Example

An importer paid $2 million in Section 301 tariffs (25% rate) on List 3 Chinese imports over 24 months. When the rate is reduced to 10% through trade negotiations, the $1.2 million overpayment (15% differential) becomes eligible for a CAPE refund claim.

Frequently Asked Questions

What Chinese imports are subject to Section 301?
Section 301 tariffs cover goods on Lists 1-4A, comprising over 5,000 HTS codes. The specific products and rates are published in the Federal Register and maintained by USTR.
Can Section 301 tariffs be refunded?
Yes, through the CAPE program when rates are reduced or eliminated. Tariffi automates the identification of eligible entries and preparation of the refund declaration.

Related Terms

IEEPAInternational Emergency Economic Powers Act — federal law authorizing the President to impose emergency tariffs and economic sanctions.CAPEConsolidated Administration and Processing of Entries — CBP's portal for filing tariff refund declarations under IEEPA and Section 301.TariffA tax imposed on imported goods, used to protect domestic industries, raise revenue, or enforce trade policy.USTRUnited States Trade Representative — the executive office responsible for developing and recommending U.S. trade policy.HTS CodeHarmonized Tariff Schedule code — the 10-digit number that determines the duty rate on imported goods in the U.S.ExclusionAn exemption from tariff actions (such as Section 301) granted for specific products via USTR petition.Section 232Trade Expansion Act provision authorizing tariffs on imports that threaten national security, notably applied to steel and aluminum.

Legal References

  • 19 U.S.C. § 2411 — Section 301 Authority
  • 84 FR 43304 — Section 301 Tariff Actions

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