{"id":1227,"date":"2019-10-02T18:50:14","date_gmt":"2019-10-03T01:50:14","guid":{"rendered":"http:\/\/www.agiliron.com\/blog\/?p=1227"},"modified":"2025-09-25T21:43:13","modified_gmt":"2025-09-26T04:43:13","slug":"the-us-business-owners-guide-to-301-china-tariffs","status":"publish","type":"post","link":"https:\/\/www.agiliron.com\/blog\/the-us-business-owners-guide-to-301-china-tariffs\/","title":{"rendered":"The US Business Owner&#8217;s Guide to 301 China Tariffs"},"content":{"rendered":"<h2><strong>Everything you need to know about China\u2019s 301s.<\/strong><\/h2>\n<p>&nbsp;<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-1228\" src=\"https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2019\/10\/aerial-shot-bird-s-eye-view-buildings-1677358.jpg\" alt=\"\" width=\"1280\" height=\"853\" title=\"\" srcset=\"https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2019\/10\/aerial-shot-bird-s-eye-view-buildings-1677358.jpg 1280w, https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2019\/10\/aerial-shot-bird-s-eye-view-buildings-1677358-300x200.jpg 300w, https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2019\/10\/aerial-shot-bird-s-eye-view-buildings-1677358-768x512.jpg 768w, https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2019\/10\/aerial-shot-bird-s-eye-view-buildings-1677358-1024x682.jpg 1024w, https:\/\/www.agiliron.com\/blog\/wp-content\/uploads\/2019\/10\/aerial-shot-bird-s-eye-view-buildings-1677358-600x400.jpg 600w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><a href=\"https:\/\/www.pexels.com\/photo\/aerial-shot-of-city-1677358\/\" target=\"_blank\" rel=\"noopener\"><i><span style=\"font-weight: 400;\">Source<\/span><\/i><\/a><\/p>\n<p><span style=\"font-weight: 400;\">The beauty of eCommerce is that it empowers ambitious business owners, like you, to connect with clients, partners, and suppliers around the world without the need to travel. But, as a US business owner, due diligence is essential, particularly when it comes to the import or export of goods.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Recently, 301 tariffs were implemented for business owners importing goods between China and the United States. These China 301 tariff enforcements are proving costly for budding US eCommerce business owners, but there are ways you can navigate these murky waters to your advantage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here, we\u2019ll explore the implications of 301 China tariffs and how it\u2019s possible to minimize or even avoid these import-export taxes legitimately, saving you time, money, and stress in the process.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>301 China tariffs explained<\/b><\/h2>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.morethanshipping.com\/an-overview-of-section-301-china-tariffs-and-what-products-are-affected\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">301 China<\/span><\/a><span style=\"font-weight: 400;\"> or section 301 tariffs are US-specific import duties placed on goods. These import duties were implemented on June 23, 2018, and have since cost importers billions of dollars in taxes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These inflated import tariffs cover industrial products, food &amp; beverages, and key consumer goods such as sporting equipment, electronics, and homeware.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Due to rising tensions and a heated trade war between the US and China, US business owners are expected to pay a 10-25% import duty on all goods, particularly those of \u2018technological significance\u2019 (this would largely apply to electronic or industrial items).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The total value of the China 301 tariffs is said to fall at around the <\/span><a href=\"https:\/\/www.ey.com\/gl\/en\/services\/tax\/international-tax\/alert--us-announces-10--tariffs-on-remaining--300-billion-of-china-origin-goods--grants-new-exclusions-on-goods-subject-to-25--duties-and-reaches-agreement-with-eu-for-increased-beef-exports\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">$300 million<\/span><\/a><span style=\"font-weight: 400;\"> mark\u2014a colossal sum in anyone&#8217;s book.<\/span><\/p>\n<p><iframe src=\"https:\/\/www.youtube.com\/embed\/avqW9zPnU3w\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">At this point, it\u2019s impossible to say if or when the 301 China tariffs might cease, but as trade tensions rage on, the best course of action is legal avoidance or mitigation. If you know how to reduce the duty you pay on Chinese imports, you\u2019ll be able to keep growing your eCommerce empire while dealing in the products that keep your business ticking.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>How to navigate the 301 China tariff<\/b><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If you rely on importing goods from China and want to continue doing so without facing severe financial penalties, these mitigative strategies will steer you in the right direction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, if these tariffs apply to you, here\u2019s what to do:<\/span><\/p>\n<p><b>\u2018Drawback,\u2019 if you can<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If your eCommerce business imports a product and re-exports the same product, you could be eligible to file for Drawback.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Drawback gives you the option to recapture any duties or tariffs that you&#8217;ve paid on products that you&#8217;ve ultimately exported. There are several factors to consider concerning Drawback eligibility, and the ability (or green light) to file for this form of tariff relief is reviewed on a case by case basis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you <\/span> conduct ample research <span style=\"font-weight: 400;\"> regarding your eligibility and making your case water-tight, this could be a viable option for avoiding colossal 301 duty fees.<\/span><\/p>\n<p><b>File for exclusion<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Concerning import legislation, there are usually <\/span><a href=\"https:\/\/www.nortonrosefulbright.com\/en-us\/knowledge\/publications\/6bf27c9c\/exclusion-process-for-section-301-tariffs-is-now-available-for-list-3-products\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">exclusions<\/span><\/a><span style=\"font-weight: 400;\"> on certain goods\u2014301 China tariffs are no exception.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While these duties are quite stringent, particular Chinese products could be excluded from the 301 China tariffs. Product exclusions are sometimes complicated to file, so if you&#8217;re looking to do so, working with an experienced professional is recommended.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When looking at your exclusion application, the government will consider the following factors:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Whether the product in question is only available in China only or if there are comparable products available in the United States or other countries.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Whether the imposition of additional duties on the product would cause economic harm to the importer (you) requesting exclusion or to the United States\u2019 interests.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Whether the product is strategically significant or related to the &#8220;<\/span><a href=\"https:\/\/thediplomat.com\/2019\/02\/made-in-china-2025-explained\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Made in China 2025<\/span><\/a><span style=\"font-weight: 400;\">&#8221; Chinese Government industrial program.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">By teaming up with an import expert with a sound understanding of the latest red tape practices and <\/span><a href=\"https:\/\/ustr.gov\/sites\/default\/files\/files\/Press\/Releases\/301FRN.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">most recent exclusions<\/span><\/a><span style=\"font-weight: 400;\">, navigating the process should be fairly seamless.<\/span><\/p>\n<p><b>Look at your product classifications<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Another useful area to explore when dealing with 301 China tariffs is product classification.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Carve out time to sit down and ask yourself the question: <\/span><b><i>Are my product classifications accurate and up-to-date?<\/i><\/b><b>\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">By conducting a comprehensive review of your imports as well as the classifications you&#8217;ve applied to these goods at least three times a year, you stand to save yourself a substantial amount in tariffs. Carrying out periodic classification reviews will save you money while minimizing the potential for Customs fines or penalties if you&#8217;ve misclassified your imports.<\/span><\/p>\n<p><b>Leverage Foreign Trade Zone procedures<\/b><\/p>\n<p><span style=\"font-weight: 400;\">In most businesses, establishing a Foreign Trade Zone and utilizing Foreign Trade Zone Procedures can prove an effective tool for weaving into your supply chain, thereby reducing or even eliminating the additional burden of import duties, 301 China tariffs included.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Leveraging Foreign Trade Zoning Procedures will serve as a loophole for reducing the burden of the imposed 301 China fees without breaking any trade laws. To help you get started, here is a relevant <\/span><a href=\"https:\/\/www.ttnews.com\/articles\/times-trade-war-companies-get-creative-avoid-tariffs\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Foreign Trade Zoning report<\/span><\/a><span style=\"font-weight: 400;\"> for your reference.<\/span><\/p>\n<p><b>Consider establishing a customs bonded warehouse<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Establishing a customs bonded facility is another savvy means of diluting the impact of 301 tariffs on a sustainable basis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Filing for the privilege of using your existing warehouse as a customs bonded facility could help you mitigate the additional costs of import tariffs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A customs bonded warehouse is an establishment or facility in which you can store dutiable goods. In a bonded warehouse, it&#8217;s possible to manipulate your goods or conduct manufacturing operations without payment of duty. Such facilities may be managed by the state or by a private enterprise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses can store and produce (or modify) products in customs bonded warehouses for up to a five- year period. Duties are only added once products leave the area, warehouse, or facility for consumption. As such, it\u2019s possible to protect yourself from the tariffs in the short run while formulating additional mitigation strategies for focusing on other areas of business growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remember to conduct your activities with due diligence. Get a firm grasp of the policies, ensure you complete every step of the journey with the utmost attention, and work with a consultant if necessary.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This <\/span><a href=\"https:\/\/www.cbp.gov\/sites\/default\/files\/documents\/bonded_20wh2_2.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">official guide<\/span><\/a><span style=\"font-weight: 400;\"> from CBP will help you understand the finer details of custom bonded facilities as well as the terms and application process.<\/span><\/p>\n<p><b>Try disaggregation tactics<\/b><\/p>\n<p><span style=\"font-weight: 400;\">301 China tariff legislation applies to \u2018products of China,\u2019 which means that as a US business owner, you\u2019re required to pay tax on whole items or \u2018complete systems.\u2019<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Based on that notion, if you have a Chinese product you heavily rely on as a business, in most cases, you can avoid paying heavy duty fees by purchasing the individual components of said product and assembling it in-house (in your customs bonded warehouse, perhaps) before selling them to consumers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You will be required to pay a duty on the individual components, but typically, this will come out to considerably less than paying a tariff on the complete product or system.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Naturally, exclusions, rules, and regulations apply, so it\u2019s worth doing your homework before taking action. Section (e) from this <\/span><a href=\"https:\/\/www.bakermckenzie.com\/-\/media\/files\/insight\/publications\/2019\/01\/section_301.pdf?la=en\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Baker McKensie report<\/span><\/a><span style=\"font-weight: 400;\"> will help get you started.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>Final Thoughts<\/b><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">In conversation about the 301 China tariffs with <\/span><a href=\"https:\/\/www.ttnews.com\/articles\/times-trade-war-companies-get-creative-avoid-tariffs\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Transport Topics News<\/span><\/a><span style=\"font-weight: 400;\">, Marianne Rowden, president of the American Association of Exporters and Importers in Washington, explained:<\/span><\/p>\n<p><b><i>&#8220;We haven&#8217;t seen anything like this most of our careers. Since the Reagan administration, we&#8217;ve had trade liberalization pretty much uninterrupted, except maybe during the financial crisis.&#8221;<\/i><\/b><\/p>\n<p><span style=\"font-weight: 400;\">These comments alone are a testament to the colossal financial impact of the 301 China tariffs across sectors. In some cases, the impact of the duties could be considered devastating, particularly for SMBs or budding US-based eCommerce businesses looking to make their mark in an increasingly competitive landscape.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, as the saying goes: <\/span><i><span style=\"font-weight: 400;\">where there is a will, there&#8217;s a way. <\/span><\/i><span style=\"font-weight: 400;\">While it\u2019s impossible to avoid 301 China tariffs completely, with planning, consideration, and the right course of action, you can reduce the hit on imported Chinese goods.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You might decide to stop importing certain goods from China and start sourcing viable alternatives or realigning your <\/span><a href=\"https:\/\/www.agiliron.com\/blog\/a-guide-to-ecommerce-store-shipping-and-fulfilment\/\"><span style=\"font-weight: 400;\">fulfillment strategy<\/span><\/a><span style=\"font-weight: 400;\">. But, of course, there will be certain goods that you still need to import from China\u2014and you should be able to do so without consequences.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Dealing with these tariffs may be a challenge, but by exploring the tips and tactics above, you will be able to continue conducting business on your terms, shaping the direction of your eCommerce empire without paying out endless amounts on import duty. Put your mitigative initiatives in place today, and you\u2019ll secure a brighter, more prosperous tomorrow for your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For more business-boosting tips and insights, check out our <\/span><a href=\"https:\/\/www.agiliron.com\/blog\/a-guide-to-using-data-to-improve-your-businesss-ecommerce-strategy\/\"><span style=\"font-weight: 400;\">guide to improving your eCommerce business strategy by harnessing the power of data<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Everything you need to know about China\u2019s 301s. &nbsp; Source The beauty of eCommerce is that it empowers ambitious business owners, like you, to connect with clients, partners, and suppliers around the world without the need to travel. But, as a US business owner, due diligence is essential, particularly when it comes to the import [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":1236,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/posts\/1227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/comments?post=1227"}],"version-history":[{"count":0,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/posts\/1227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/media\/1236"}],"wp:attachment":[{"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/media?parent=1227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/categories?post=1227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.agiliron.com\/blog\/wp-json\/wp\/v2\/tags?post=1227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}