Members,
The USTR granted 19 additional exclusions from Section 301 List 4 to medical supplies that are part of the COVID19 response.
These exclusions apply retroactively to the implementation date of September 1st, 2019 and will remain until September 1st, 2020.
CSMS #42049352 – GUIDANCE: Section 301 Tranche 4A – $300B Second Round of Product Exclusions from China (9903.88.42)
BACKGROUND
The U.S. Trade Representative (USTR) made the decision to grant certain exclusion requests from the Section 301 duty on goods covered under list 1/Annex A ($300B Action – Tranche 4) 84 FR 43304.
These product exclusions relate to the imposed additional duties announced in 84 FR 43304 and 84 FR 45821 on Chinese goods with an annual aggregate trade value of approximately $300 billion. The product exclusions will retroactively apply as of the September 1, 2019 with the effective date of the $300 billion action (Tranche 4A), and will extend through September 1, 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 4A-$300B 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 19 specifically prepared product descriptions, which covered 39 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, 63, 84 and 90 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.42 (Articles the product of China, as provided for in U.S. note 20(uu) 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 9903.88.42 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 1, 2019. 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 copy of the Annex can be found here: Section 301 ANNEX 99038842.docx and is noted below.
- 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 1, 2019, subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) is modified:
- by inserting the following new heading 9903.88.42 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 | |||
| “9903.88.42 | Articles the product of China, as provided for in U.S. note 20(uu) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative . . . . . . . . . . . . . . . . . . . . . |
The duty provided in the applicable subheading” |
||
- by inserting the following new U.S. note 20(uu) to subchapter III of chapter 99 in numerical sequence:
“(uu) The U.S. Trade Representative determined to establish a process by which particular products classified in heading 9903.88.15 and provided for in U.S. notes 20(r) and (s) to this subchapter could be excluded from the additional duties imposed by heading 9903.88.15. See 84 Fed. Reg. 43304 (August 20, 2019), 84 Fed. Reg. 45821 (August 30, 2019), 84 Fed. Reg. 57144 (October 24, 2019) and 85 Fed. Reg. 3741 (January 22, 2020). Pursuant to the product exclusion process, the U.S. Trade Representative has determined that the additional duties provided for in heading 9903.88.15 shall not apply to the following particular products, which are provided for in the following enumerated statistical reporting numbers:
- Bowls of molded plastics, with clips for retaining guide wires during surgical procedures (described in statistical reporting number 3926.90.9990)
- Disposable graduated medicine dispensing cups of plastics (described in statistical reporting number 3926.90.9990)
- Pads of foam plastics, with hook and loop fastener straps, integrated arm protectors, and accessory headrest, body straps, lift sheets, hand grips and face masks, of a kind used for positioning patients during medical procedures (described in statistical reporting number 3926.90.9990)
- Single-use sterile drapes and covers of plastics, of a kind used to protect the sterile field in surgical operating rooms (described in statistical reporting number 3926.90.9990)
- Sterile decanters of polystyrene plastics, each of a kind used to transfer aseptic fluids or medication to and from sterile bags, vials or glass containers (described in statistical reporting number 3926.90.9990)
- Cold packs consisting of a single-use, instant, endothermic chemical reaction cold pack combined with a textile exterior lining (described in statistical reporting number 6307.90.9889)
- Disposable shoe and boot covers of man-made fiber fabrics (described in statistical reporting number 6307.90.9889)
- Eye compresses, each consisting of a fabric cover filled with silica or gel beads, with or without a hook-and-loop fastener strap (described in statistical reporting number 6307.90.9889)
- Face masks, single-use, of textile fabrics (described in statistical reporting number 6307.90.9889)
- Gel pads of textile materials, each with removable fabric sleeves, in the shape of hearts, circles or quadrants (described in statistical reporting number 6307.90.9889)
- Hot packs of textile material, single-use (exothermic chemical reaction) (described in statistical reporting number 6307.90.9889)
- Laparotomy sponges of cotton (described in statistical reporting number 6307.90.9889)
- Patient restraint or safety straps of textile materials, with hook-and-loop or ladder lock fasteners (described in statistical reporting number 6307.90.9889)
- Single-use blood pressure cuff sleeves of textile materials (described in statistical reporting number 6307.90.9889)
- Single-use medical masks of textile material (described in statistical reporting number 6307.90.9889)
- Single-use stethoscope covers (described in statistical reporting number 6307.90.9889)
- Woven gauze sponges of cotton in square or rectangular sizes (described in statistical reporting number 6307.90.9889)
- Electromechanical shoe cover dispenser, of steel (described in statistical reporting number 8479.89.6500)
- Protective articles (described in statistical reporting number 9004.90.0000)”
by amending the last sentence of the first paragraph of U.S. note 20(r) to insert “, except as provided in heading 9903.88.42 and U.S. note 20(uu) to subchapter III of chapter 99” after “heading 9903.88.15”.
- by amending the article description of heading 9903.88.15 by deleting the word “Articles” and inserting “Except as provided in heading 9903.88.42, articles” in lieu thereof.
Best Regards
Gemini Shippers Group
