FLIP 301 China Tariff 12.5%: Declaration Codes & Exclusions Guide
1. What Is the FLIP 301 Tariff?
On July 23, 2026, the USTR published its Notice of Actions in the Section 301 Investigations (Forced Labor Investigation Process, or FLIP) in the Federal Register. Effective 12:01 am ET on July 24, 2026, goods of Chinese origin are subject to a new 12.5% FLIP 301 tariff unless covered by an exclusion.
This is not a routine rate change. For Chinese-origin merchandise, it stacks on top of the existing Section 301 (List 1-4A) duties, Section 232 steel/aluminum/copper duties, and antidumping/countervailing duties. US importers sourcing from China should treat this as a permanent addition to landed cost.
Timeline:
- 2026-06-02: USTR concludes Section 301 investigations of 60 economies, proposes 10%/12.5% tariffs
- 2026-07-23: Final action published (FRN 7-23-26)
- 2026-07-24 12:01 am ET: FLIP 301 tariff takes effect
- Same day: Section 122 (10% global supplemental) expires
2. Quick-Reference: Declaration Codes
| Code | Purpose | Treatment |
|---|---|---|
| 9903.05.31 | Standard dutiable Chinese-origin goods | Normal HTSUS rate + FLIP 12.5%; existing 301/232/AD/CVD still apply |
| 9903.05.85 | Transition (goods already in transit) | No FLIP 12.5%; other duties unchanged |
| 9903.05.86 | General HTSUS exclusion list (856 ten-digit codes) | No FLIP 12.5% |
| 9903.05.87 | 16 specific products | No FLIP 12.5%; must meet HTSUS conditions |
| 9903.05.88 | Civil aircraft products (541 codes) | Must also qualify as civil aircraft + General Note 6 |
| 9903.05.89 | Pharmaceutical products (700 codes) | Must qualify as pharmaceutical applications |
| 9903.05.90 | Products covered by Section 232 | Steel/aluminum/copper/auto parts/wood products, etc. |
| 9903.05.91 | Humanitarian donations | Donation by US-controlled entity relieving human suffering |
| 9903.05.92 | Informational materials | Publications/films/photos/recordings/art/news |
3. Stacking Rules: FLIP 301 Does Not Replace Existing Duties
| Scenario | Treatment |
|---|---|
| Chinese-origin, not excluded | Normal HTSUS + FLIP 12.5% + existing 301 + 232 + AD/CVD |
| Under 9903.05.85-92 exclusion | No FLIP 12.5%; all other duties unchanged |
Three key points:
1. Exclusion is not exemption: U.S. Note 52 makes clear the FLIP tariff does not affect normal Chapter 1-97 rates and does not replace other Chapter 99 duties or AD/CVD. “Exclusion” only waives this FLIP tariff.
2. Section 232 does not waive FLIP: Unlike Section 122, goods covered by Section 232 are NOT automatically exempt from FLIP 301 — but importers can use 9903.05.90 to exclude the FLIP portion.
3. Net +2.5% for Chinese goods: Between July 23 and July 24, the tax burden changed from 10% (Section 122) to 12.5% (FLIP 301) — a net increase of 2.5% on top of all existing duties.
4. Transition Exclusion (9903.05.85) — Document Everything
The transition exclusion covers July 24-27, 2026, with a hard deadline of 12:01 am ET July 28. Both conditions must be met:
1. Goods loaded on a vessel at the port of loading before 12:01 am ET July 24, 2026, and in final transit to the US
2. Goods entered for consumption or withdrawn from warehouse for consumption before 12:01 am ET July 28
This exclusion does NOT waive existing Section 301, 232, or AD/CVD duties. Keep the bill of lading, loading date, final-leg transit proof, arrival records, entry summary, and warehouse withdrawal records.
5. Exclusion Conditions in Detail
- 9903.05.86: Only if the precise ten-digit HTSUS is on the U.S. Note 52(b) list (856 items)
- 9903.05.87: Limited to 16 specific products in Appendix B; some have use restrictions
- 9903.05.88: Even if on Appendix C, must be civil aircraft and meet General Note 6
- 9903.05.89: Even if on Appendix D, must be for pharmaceutical applications
- 9903.05.90: Excludes the FLIP tariff only, NOT Section 232 itself
6. FLIP 301 vs Section 122
| Item | Section 122 (expired) | FLIP 301 (new) |
|---|---|---|
| Legal authority | Trade Act of 1977 §122 | Trade Act of 1974 §301 |
| Rate | 10% | 12.5% |
| Scope | All goods (232-covered exempt) | Chinese-origin only (with exclusions) |
| Effective | 2026-06-22 to 2026-07-24 | 2026-07-24 onward |
| Stack with 301 | Yes | Yes (independent authority) |
| Section 232 exemption | Exempt | Not exempt (use 9903.05.90) |
7. Action Checklist for Importers
1. Check the exclusion lists: Is your product’s ten-digit HTSUS on 9903.05.86-92? If not, expect the 12.5%.
2. Recalculate stacked duties: Existing 301 (List 1/2/3/4A), 232 steel/aluminum/copper, and AD/CVD all still apply.
3. Update costing models: Any DDP quote for Chinese-origin goods must now include the 12.5% FLIP tariff.
4. Preserve in-transit evidence: If loaded before July 24 and entered by July 28, keep B/L and entry records to claim 9903.05.85.
5. Monitor exclusion updates: USTR can revise the exclusion lists at any time — recheck periodically.
8. FAQ
What is the FLIP 301 tariff?
How does FLIP 301 relate to the expired Section 122 tariff?
My goods were shipped before July 24. Do I still pay the FLIP tariff?
How do I know if my product is excluded from FLIP 301?
Does FLIP 301 affect existing antidumping duties?
How can I quickly estimate my landed cost with the new tariff?
9. Further Reading
- US Import Tariff Guide: Section 301, 232 & Antidumping
- USTR Section 301 Forced Labor Tariff — Background Analysis
- Yinrui Logistics Compliance Services
Policy changes quickly; this guide reflects the Federal Register notice as of July 28, 2026. For product-specific FLIP 301 applicability or landed-cost estimates, contact Yinrui Logistics — phone +86 181 0290 2805, or visit sz-yr.com. We provide China-US ocean freight, FBA head haul, and DDP customs clearance services.
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