NMMA calls for reopening of Section 301 Tariff exclusion process

The National Marine Manufacturers Association (NMMA) submitted comments to the Department of Commerce, calling on the administration to fully reinstate expired exclusions and reopen the exclusion process for products from China impacted by the Section 301 tariffs.

In May, the Biden administration announced proposed modifications to the Section 301 tariffs on imports from China; increasing tariffs on several sectors and establishing a new, very limited exclusion process for domestic machinery. The administration is not removing the current Section 301 tariffs – which impact more than 300 commonly used components, materials, and parts used in the marine manufacturing process.

In the comments, NMMA notes “[A]round 90 percent of recreational marine businesses are small businesses, of which many are family-owned. From tariffs on raw materials and components, to retaliatory tariffs that froze the European Union from marine exports, the U.S. recreational boating industry has borne the brunt of tit-for-tat tariffs.” Regarding the difficulty in reinventing supply chains, NMMA added that, “shifting supply chain networks cannot change at the drop of a hat, requiring companies, instead, to commit significant capital towards a complex and long-term process. The Section 301 tariffs continue hampering small domestic marine businesses as they are unable to find suitable alternative networks, especially for specialized products often found in the marine industry.”

For the past four years, the Biden administration has been reviewing trade and tariff policies for realigning the U.S.-China trade relationship. Throughout the process, the NMMA has urged the administration to reinstate all exclusions for marine products and reopen the exclusions process for every imported product currently impacted by Section 301 tariffs.

NMMA said it stands ready to help all stakeholders navigate the Section 301 process and provide updates as the administration’s policy evolves. If your business has been impacted by Section 301 tariffs on products imported from China, contact NMMA director of federal government relations, Clay Crabtree at ccrabtree@nmma.org.