GUIDANCE: One Year Extension on Certain China Section 301 Exclusions for Products Covered Under Tranche 1 – $34B –Action (9903.88.06)

Cargo Systems Messaging Service

CSMS #42180527-GUIDANCE: One Year Extension on Certain China Section 301 Exclusions for Products Covered Under Tranche 1 – $34B –Action (9903.88.06)

On March 19, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 15849 to extend for 12 months certain product exclusions covered by the March 25, 2019 notice (see 84 FR 11152) for Section 301 duties on China ($34B Action – Tranche 1).

These product exclusions relate to the imposed additional duties on Chinese goods with an annual trade value of approximately $34 billion. These exclusions apply retroactive to the July 6, 2018 effective date of the $34 billion action, and will extend to March 25, 2021.

The scope of each exclusion is governed by the scope of the HTSUS 10-digit classification and product descriptions in the Annex to 85 FR 15849, and not by the product descriptions set out in any particular request for exclusion. A link to the Federal Register Notice is embedded in this message.

The functionality for the acceptance of certain product exclusions extended for 12-months on articles from China covered under Tranche 1 – $34B Action of Section 301 duties will be available in the Automated Commercial Environment (ACE) by 7am, Eastern Standard Time on March 26, 2020.

Instructions for the trade on submitting entries to CBP containing certain product exclusions that have been extended are set out below:

• In addition to reporting the regular Chapters 84, 85, 86, and 90 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.06 (Articles, the product of China, as provided for in U.S. note 20(i) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
• Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.06 is submitted.

Product Exclusions granted a 12-month extension under HTS 9903.88.06:

• 8412.21.0045, 8607.21.1000, 8413.81.0040, 8421.21.0000, 8421.22.0000, 8421.99.0040, 8431.49.9095, 8471.70.6000, 8501.10.4020 and 9027.90.5650

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 July 6, 2018 effective date of the Tranche 1, $34B Action, of the China Section 301 trade remedies. 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, but within 180 days of the liquidation action, importers may protest the liquidation.

Reminder: The trade should be referred to CSMS 39587858 for instructions on the entry summary order of reporting for multiple HTSUS when HTSUS Chapter 98 or 99 are required.

For ease of reference, a summary of Section 301 duties and product exclusion notifications is provided as an attachment.

Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative. Questions related to Section 301 entry-filing requirements, please refer to CSMS message #40969690 (Information on Trade Remedy Questions and Resources)