In this paper, I study the e_x001b_ects of policy uncertainty arising from the gap between bound and applied MFN tari_x001b_ rates (known as binding overhang) on the extensive margin of exporting. Using cross sectional trade and tari_x001b_ data, I _x001c_nd a negative signi_x001c_cant e_x001b_ect of policy uncertainty arising from binding overhang, and _x001c_nd that this e_x001b_ect is heterogeneous across importing countries.