USTR Grants further Exclusions to List 3 for 5  tariff numbers that were subject to the Section 301 List 3

Members,

 ( 3/17/2020)  The US Trade Representative granted further exclusions to  List 3 for the section 301 tariff.

These exclusions retroactively apply to the September 24th, 2018 implementation date and remain in effect until August 7th, 2020.

The notice from USCBP is included below:

 

 CSMS #42048963 – GUIDANCE: Section 301 Tranche 3 – $200B Tenth Round of Product Exclusions from China (9903.88.41)

BACKGROUND
The U.S. Trade Representative (USTR) made the decision to grant certain exclusion requests from the Section 301 duty related to goods from China ($200B Action – Tranche 3) 83 FR 47974.
These product exclusions relate to the imposed additional duties announced in 83 FR 47974 on Chinese goods with an annual trade value of approximately $200 billion. The product exclusions will retroactively apply as of the September 24, 2018 with the effective date of the $200 billion action (Tranche 3), and will extend through August 7, 2020.
The exclusions are available for any product that meets the description in the Annex (see attachment), regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings described in the Annex, and not by the product descriptions set out in any particular request for exclusion.
The functionality for the acceptance of the imported merchandise covered under the second round of products excluded from the Section 301 Tranche 3-$200B Action will be available in the Automated Commercial Environment (ACE) as of 7am eastern standard time, March 16, 2020.

GUIDANCE
The exclusions are reflected in five 10-digit HTSUS subheadings, which covered 75 separate exclusion request. Instructions for importers, brokers, and filers on submitting entries to CBP are set out below.
• In addition to reporting the regular Chapters 39, 40 and 56 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.41 (Articles the product of China, as provided for in U.S. note 20(tt) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative) for imported merchandise subject to the exclusion).
• Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.41 is submitted.
ADDITIONAL INFORMATION
Imports which have been granted a product exclusion from the Section 301 measures, and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146.
Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of September 24, 2018. To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe. If the entry is beyond the PSC filing timeframe, importers may protest the liquidation.
Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer them to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required).

A section of the Annex with the excluded HTS codes can be accesed here:
Section 301 ANNEX 99038841.docx  and is noted below:

  1. Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on September 24, 2018, subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) is modified:
    1. by inserting the following new heading 9903.88.41 in numerical sequence, with the material in the new heading inserted in the columns of the HTSUS labeled “Heading/Subheading”, “Article Description”, and “Rates of Duty 1-General”, respectively:

 

Heading/ Subheading Article Description Rates of Duty
1 2
General Special
“9903.88.41 Articles the product of China, as provided for in U.S. note 20(tt) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative . . . . . . . . . . . . . . . . . . . . . The duty provided in the applicable subheading”

 

  1. by inserting the following new U.S. note 20(tt) to subchapter III of chapter 99 in numerical sequence:

“(tt) The U.S. Trade Representative determined to establish a process by which particular products classified in heading 9903.88.03 and provided for in U.S. notes 20(e) and (f) to this subchapter could be excluded from the additional duties imposed by heading 9903.88.03. See 83 Fed. Reg. 47974 (September 21, 2018) and 84 Fed. Reg. 29576 (June 24, 2019). Pursuant to the product exclusion process, the U.S. Trade Representative has determined that the additional duties provided for in heading 9903.88.03 shall not apply to the following particular products, which are provided for in the enumerated statistical reporting numbers:

1)         3923.21.0030
2)         3923.21.0095
3)         3926.20.9050
4)         4015.19.1010
5)         5603.12.0090

  1. by amending the last sentence of the first paragraph of U.S. note 20(e) to subchapter III of chapter 99:

by deleting the word “or” where it appears after the phrase “U.S. note 20(qq) to subchapter III of chapter 99;”

and

  1. by inserting the phrase “; or (10) heading 9903.88.41 and U.S. note 20(tt) to subchapter III of chapter 99” after the phrase “U.S. note 20(ss) to subchapter III of chapter 99”.

 

  1. by amending U.S. note 20(f) to subchapter III of chapter 99;
  1. by deleting the word “or” where it appears after the phrase “U.S. note 20(qq) to subchapter III of chapter 99;”; and
  2. by inserting the phrase “; or (10) heading 9903.88.41 and U.S. note 20(tt) to subchapter III of chapter 99” after the phrase “U.S. note 20(ss) to subchapter III of chapter 99”.

 

  1. by amending the Article Description of heading 9903.88.03:

 

  1. by deleting “9903.88.38 or” and inserting “9903.88.38,” in lieu thereof; and

b. by inserting “or 9903.88.41,” after “9903.88.40,”.

Best regards
Gemini Shippers Group

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