Section 301 Tariffs: China Duties, Exclusions and Refund Process

Section 301 tariffs are U.S. import duties imposed on Chinese goods under the authority of the Trade Act of 1974 §301 (19 USC §2411-2420). The Office of the U.S. Trade Representative (USTR) initiated the program in 2018 after investigating China’s unfair trade practices in technology transfer, intellectual property, and innovation. The result was four tariff lists covering roughly $370 billion in annual Chinese imports. In 2026, Section 301 duties stack on top of the Reciprocal Tariff Act rates, bringing total China tariffs to 145% for most affected goods.

Section 301 is China-specific. It does not apply to imports from other countries. Every Section 301 shipment uses an HTS subheading in the 9903.88 series to identify the applicable list and rate. U.S. Customs and Border Protection (CBP) collects the duties at the time of entry.

Section 301 Lists and HTS Code Coverage

USTR created four tariff lists between 2018 and 2019, each covering a different tranche of Chinese goods by HTS code.

How to Check If Your HTS Code Is on a Section 301 List

Search the USTR Section 301 list database by 10-digit HTS subheading. If your subheading appears on List 1, 2, 3, or 4A, the corresponding rate applies on top of all other duties. Use the China to U.S. tariff calculator to check total stacked duty rates by HTS code before placing purchase orders.

HTS Subheading 9903.88 Explained

Every Section 301 entry uses a special HTS subheading in the 9903.88 series as an additional classification. CBP applies the rate associated with that subheading on top of the standard Column 1 duty. The subheading identifies which list applies:

• List 1 ($34B goods): 25% rate. Covers industrial machinery, aerospace components, and high-tech goods.
• List 2 ($16B goods): 25% rate. Covers semiconductors, chemicals, and plastics.
• List 3 ($200B goods): 25% rate (raised from 10% in May 2019). Covers consumer goods, furniture, seafood, and a wide range of manufactured products. This list represents the largest share of affected import value.
• List 4A ($120B goods): 7.5% rate (reduced from 15% under the Phase 1 deal in January 2020). Covers consumer electronics, apparel, footwear, and other consumer goods.

Current Section 301 Rates in 2026

In 2026, Section 301 rates themselves have not changed since 2020. What changed is the stacking environment. The Reciprocal Tariff Act added a 145% baseline on Chinese goods through executive order. The combined rate on a List 3 product from China is:

• Base HTSUS Column 1 duty (varies by product, often 0-6%)
• Section 301 List 3: 25%
• Reciprocal Tariff Act: 145%
• Total: 170%+ before Section 232 stacking

For steel and aluminum products subject to both Section 301 and Section 232, add 25% more. This level of stacked tariffs has made direct China sourcing economically viable only for products with no alternative supply chain. Work with a tariff consulting firm to map your full duty stack before committing to a sourcing decision.

Section 301 Exclusion Process and Reinstatement

USTR grants product-specific exclusions that allow named importers to bring in covered goods at zero Section 301 duty. Exclusions are time-limited and company-specific or product-specific depending on the batch.

Active Exclusions in 2026

USTR has reinstated some exclusions that expired during 2021-2023. The active exclusion set changes with each USTR Federal Register notice. Importers must verify that their specific HTS subheading and product description match an active exclusion before claiming it at entry.

How to Request a New Exclusion

USTR opens exclusion request windows on a list-by-list basis. During an open window, importers submit a request describing the product, the volume needed, and why no adequate domestic or third-country source exists. Domestic producers can object. USTR issues a determination published in the Federal Register. Approved exclusions apply retroactively to the request date.

Section 301 Refund Eligibility and CIT Litigation Status

The Court of International Trade (CIT) has been hearing consolidated challenges to the Section 301 List 3 and 4A tariffs in In Re Section 301 Cases. Importers who preserved their refund claims by filing protests with CBP may recover duties if the court rules in their favor. This is active litigation. The outcome is uncertain. Do not make sourcing or cash flow decisions based on an assumed refund. Consult legal counsel with CIT experience before relying on this pathway.

Separately, Section 301 duties are eligible for duty drawback under 19 USC §1313. Importers who re-export finished goods manufactured with Section 301 inputs can recover up to 99% of duties paid. This is a confirmed pathway, unlike the CIT litigation. See the IEEPA tariff refunds page for context on what refund mechanisms are confirmed vs pending.

Mitigation Strategies for Importers

Four strategies reduce Section 301 exposure without abandoning China sourcing entirely:

1. First Sale for Export: Value the import at the manufacturer’s first sale price rather than the middleman price. This lowers the dutiable value and reduces the absolute dollar amount of Section 301 duties. The First Sale for Export program requires documentation of the transaction chain.
2. Customs bonded warehouse: Defer duties while waiting for exclusion decisions or rate changes. Duties apply at the rate in effect at withdrawal, not at entry.
3. Sourcing diversification: Shift production to Mexico (USMCA), Vietnam, India, or other countries not subject to Section 301. Verify that the country of origin determination supports the shift before moving purchase orders.
4. Duty drawback: Recover up to 99% of Section 301 duties paid on inputs used in goods that are subsequently exported. File within 5 years of export.

The trade advisory services team models all four options against your current HTS code mix and exports volume to find the highest-ROI combination.

Frequently Asked Questions

Section 301 exposure on China sourcing is reducible. The China to U.S. tariff calculator shows your full stacked duty rate by HTS code in seconds. The trade advisory services team maps exclusion eligibility, drawback recovery, and sourcing alternatives to cut your total landed cost.