How Tariff Exclusions Work and How to Claim Them

If you import products subject to Section 301 tariffs and you are not checking for exclusions, you may be overpaying by thousands of dollars per year. Tariff exclusions exist. They are free to claim. And most small importers have never heard of them.

This guide explains what exclusions are, how to find out if your products qualify, how to claim them on your customs entries, and how to recover duties you should never have paid. For background on the tariff programs that exclusions apply to, see our Complete Guide to US Import Tariffs in 2026.

What Is a Tariff Exclusion?

A tariff exclusion is a temporary exemption from a specific surcharge — usually a Section 301 tariff — for a specific product identified by its HTS code. When an exclusion is active, the product enters the US without the additional tariff. The normal base duty rate still applies, but the punitive surcharge drops to zero.

Exclusions are granted by the United States Trade Representative (USTR) through a public petition process. They are product-specific, not company-specific. Any importer bringing in a qualifying product can claim the exclusion, regardless of who originally petitioned for it.

The logic behind exclusions is simple: some products cannot be sourced from anywhere other than China, or removing the tariff serves a broader economic interest. USTR weighs these factors when deciding which products to exempt.

Current Status: 178 Active Exclusions Through November 2026

As of April 2026, there are 178 Section 301 product exclusions in effect, most extended through November 10, 2026. These cover specific HTS codes across several categories:

• Industrial equipment and machinery
• EV batteries and battery components
• Critical minerals (lithium, cobalt, rare earths)
• Semiconductors and semiconductor manufacturing equipment
• Solar cells and modules
• Recycling and waste-processing equipment

Each exclusion is defined with precise language — exact product descriptions, dimensional limits, materials, or end-use specifications. A general product category is not enough. Your product must match the exclusion description exactly.

How Exclusions Are Granted

The process works like this:

1. USTR opens a petition window. This happens through a Federal Register notice announcing that importers can request exclusions for specific products.
2. Companies submit petitions. Each petition must explain why the product cannot be sourced from non-China suppliers, or demonstrate that the tariff causes severe economic harm to the petitioner or the broader US economy.
3. Public comment period. Other parties — including domestic producers who compete with the imported product — can file objections arguing the exclusion is not warranted.
4. USTR reviews and decides. Decisions are published in the Federal Register, listing the specific products granted exclusions along with their effective dates and applicable Chapter 99 HTS codes.

The entire cycle from petition to decision typically takes 6 to 12 months. As of April 2026, USTR is not accepting new exclusion petitions — only processing extensions for existing ones.

How to Check If Your Product Qualifies

Step 1: Confirm your HTS code. You need the exact 8-digit or 10-digit HTS classification for your product. If you are unsure, use our HTS lookup tool or check with your customs broker. Getting this wrong invalidates everything that follows.

Step 2: Search the USTR exclusion list. USTR publishes all active exclusions in Federal Register notices. Each notice lists the covered HTS subheadings and detailed product descriptions. Cross-reference your code against these lists.

Step 3: Match the product description exactly. A partial match does not count. If the exclusion covers "lithium-ion battery cells with a capacity not exceeding 50 Ah," your 60 Ah cells do not qualify. Read every word.

Step 4: Check effective dates. Some exclusions have already expired. Others expire at different times. Confirm that the exclusion covering your product is active for the period of your import entries.

If your product matches on all four points, you have money to recover.

How to Claim an Exclusion on Your Customs Entry

Your customs broker handles the mechanical filing, but you need to know what they should be doing — because if they are not doing it and your product qualifies, you are overpaying on every shipment.

When filing the entry, your broker must:

1. Enter the product under its standard HTS code (e.g., 8541.40 for solar cells).
2. Add the corresponding Chapter 99 exclusion code (e.g., 9903.88.xx) as an additional HTS line on the same entry.
3. Cite the specific Federal Register notice that grants the exclusion.

The Chapter 99 code is what triggers the duty relief. Without it, CBP assesses the full Section 301 rate by default. The system does not automatically detect that your product qualifies — your broker has to affirmatively claim it.

Chapter 99 Codes Explained

Chapter 99 of the HTS contains special codes that modify the duty treatment of products classified elsewhere in the tariff schedule. They do not replace your product's HTS code — they layer on top of it.

Think of it this way: your product enters under its Chapter 84 or Chapter 85 code (what it is), and the Chapter 99 code tells CBP how that product should be treated under a specific trade program (what rate to charge). For exclusions, the Chapter 99 code zeroes out the Section 301 surcharge while leaving the base duty rate intact.

Your broker should know which Chapter 99 code maps to each exclusion. If they don't, that is a problem worth addressing immediately.

How to Get Refunds on Overpaid Duties

If you have been paying Section 301 duties on a product with an active exclusion, you can recover those overpayments. Here is the process:

1. File a Post Summary Correction (PSC). This is the mechanism for correcting a customs entry after liquidation. Your broker prepares and submits the PSC to CBP.
2. Time limit: 180 days from the date of entry. You can file PSCs for any qualifying entries made within the last 180 days. Entries older than that may require a formal protest filing, which has its own deadlines and requirements.
3. CBP processes the refund. Once CBP approves the correction, the overpaid duties are refunded to the importer of record.

Dollar Impact Example

Consider an importer of industrial equipment paying a 25% Section 301 tariff on $100,000 per year of qualifying products:

That is $25,000 per year in savings going forward, plus a potential $12,500 recovery for past entries. For importers with higher volumes, the numbers scale accordingly. This is not a rounding error — it is a line item that hits your margin directly.

The Expiration Risk: November 2026 Is Likely the Hard Deadline

USTR has extended these exclusions multiple times since 2020, and each time the trade community has treated the "final" extension as negotiable. This time the signals are different. USTR has indicated that the November 10, 2026 expiration is the last round. No new exclusions are being granted — only extensions of the existing 178.

When these exclusions expire, the full Section 301 rate snaps back immediately. There is no grace period.

What to Do When Exclusions Expire

• Plan for cost increases. Budget for the Section 301 rate (7.5% to 25% depending on the list) to return on affected products.
• Update your pricing. If you have been passing the savings on to customers, you will need to adjust or absorb the increase.
• Explore alternative sourcing. Products from non-China origins are not subject to Section 301 tariffs. Lead times for qualifying new suppliers can be 6 to 12 months, so start now.
• Talk to your broker about reclassification. In some cases, a product may legitimately classify under a different HTS code that is not on a Section 301 list. This must be done carefully — CBP penalizes intentional misclassification.
• Monitor for legislative action. Congress has periodically proposed making certain exclusions permanent. Track our tariff tracker for updates.

Section 232 Exclusions: A Separate Process

Section 232 tariffs on steel, aluminum, and copper have their own exclusion mechanism, entirely separate from the Section 301 process.

Key differences:

• Administered by the Commerce Department, not USTR.
• Company-specific, not product-specific. You petition for your own imports; the exclusion does not automatically apply to other importers of the same product.
• Slower process. Reviews routinely take 6 months or more.
• Lower approval rates. Commerce evaluates whether the product is available from domestic producers, and domestic producers frequently object.

If you import steel, aluminum, or copper products and believe the Section 232 tariff is unjustified for your specific use case, consult a trade attorney before filing. The process is more adversarial and the stakes for getting it wrong are higher.

Key Takeaways

• 178 Section 301 exclusions are active through November 10, 2026 — check if your products qualify.
• Claiming an exclusion requires your broker to add the correct Chapter 99 code to your entry. It is not automatic.
• If you have been overpaying, file a Post Summary Correction within 180 days to recover duties.
• The November 2026 expiration is likely final — plan now for costs to increase.
• Section 232 exclusions are a separate, slower, company-specific process through Commerce.

For a full overview of how Section 301, Section 232, and other tariff layers work together, read our Complete Guide to US Import Tariffs in 2026.

Not sure which of your HTS codes have active exclusions? TariffDesk's tariff tracker monitors every Federal Register notice and USTR announcement — and alerts you when exclusions expire or change for your products. Stop leaving money on the table. Start monitoring your HTS codes →