CSMS #39981444 – GUIDANCE: Ninth Round of Products Excluded from Section 301 Duties (Tranche 3) and Application of Duties for Certain Set Provisions in Tranche 3 and Tranche 4 Annex A distributed on Sept. 26, 2019 provides guidance in the form of instructions for importers, brokers and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in Federal Register Notice 84 Fed. Reg. 49591 as follows:

  • In addition to reporting the regular Chapters 38, 39, 40, 42, 44, 46, 48, 54, 55, 59, 73, 76, 83, 84, 85, 87, and 94 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.18 (Articles the product of China, as provided for in U.S. note 20(w) 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 9903.88.18 is submitted.

ADDITIONAL GUIDANCE FOR APPLYING SEC 301 DUTY TO SETS (Annex B)

Annex B to Federal Register Notice 84 Fed. Reg. 49591 identifies specific HTS numbers described as sets. Part A applies to those sets in the Tranche 3 (9903.88.03 or 9903.88.09) list and Part B applies to those sets in the Tranche 4 Annex A (9903.88.15) list. The intent is to apply section 301 duties only once on products of a set provision.

If the component(s) is not subject to section 301 duties then the HTS# associated with the set will have the applicable duty rate applied as per the procedures outlined with the respective Tranche.

If the set and the component(s) are subject to Section 301 duties, use the guidance below. Section 301 duties are to be applied on the component with the highest duty rate.

Sets Included in Tranche 3

  • If the component HTS# is covered under Tranche 1 (9903.88.01), then transmit 9903.88.21. (Only the Tranche 1 duty rate will apply to the component and the set will not be charged the Tranche 3 duty rate.)
  • If the component HTS# is covered under Tranche 2 (9903.88.02), then transmit 9903.88.22. (Only the Tranche 2 duty rate will apply to the component and the set will not be charged the Tranche 3 duty rate.)
  • If the component HTS# is covered under Tranche 3 (9903.88.03 or 9903.88.09), then transmit 9903.88.23. (Only the Tranche 3 duty rate will apply to the component and the set will not be charged the Tranche 3 duty rate.)
  • If the component HTS# is covered under Tranche 4 (9903.88.04), then transmit 9903.88.24. (Only the Tranche 4 duty rate will apply to the component and the set will not be charged the Tranche 3 duty rate.)

Sets Included in Tranche 4 (Annex A)

  • If the component HTS# is covered under Tranche 1 (9903.88.01), then transmit 9903.88.25. (Only the Tranche 1 duty rate will apply to the component and the set will not be charged the Tranche 4 duty rate.)
  • If the component HTS# is covered under Tranche 2 (9903.88.02), then transmit 9903.88.26. (Only the Tranche 2 duty rate will apply to the component and the set will not be charged the Tranche 4 duty rate.)
  • If the component HTS# is covered under Tranche 3 (9903.88.03 or 9903.88.09), then transmit 9903.88.27. (Only the Tranche 3 duty rate will apply to the component and the set will not be charged the Tranche 4 duty rate.)
  • If the component HTS# is covered under Tranche 4 (9903.88.04), then transmit 9903.88.28. (Only the Tranche 4 duty rate will apply to the component and the set will not be charged the Tranche 4 duty rate.)

NOTE

  • 9903.88.21, 9903.88.22, 9903.88.23 and 9903.88.24 are valid as of the effective date for Tranche 3, September 24, 2018
  • 9903.88.25, 9903.88.26, 9903.88.27 and 9903.88.28 are valid as of the effective date for Tranche 4 Annex A, September 1, 2019.

ADDITIONAL INFORMATION

Duty exclusions granted by the USTR as set out in Federal Register Notice 83 Fed. Reg. 47974 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, they should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are Required).

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.

For ease of reference, Summaries of Section 301 Duties and Product Exclusion Notifications are provided below:

[See latest chart with CSMS #39997241, below]

For more information related to the ninth round of products of China excluded from Section 301 duties, please refer to Federal Register Notice 84 Fed. Reg. 49591, issued September 20, 2019.

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 should be emailed to Traderemedy@cbp.dhs.gov.

Related CSMS Messages: 38840764, 18-000554, 19-000238, 19-000274, 19-000332- 19-000244, 19-000212, 19-000155, 19-000052, 39268267.

In addition, CSMS #39985407 – GUIDANCE: Tenth Round of Products Excluded from Section 301 Duties was distributed on September 26, 2019 and apply to Tranche 1 (the $34 Bn action).

GUIDANCE

Instructions for importers, brokers, and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 84 FR 49564 are as follows:

  • In addition to reporting the regular Chapters 84, 85, 87, 88 and 90 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.14 (Articles the product of China, as provided for in U.S. note 20(q) 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 9903.88.14 is submitted.
  • Paragraph “B” of the Annex to 84 FR 49564 corrects a previous exclusion round; U.S. note 20(n)(105) to subchapter III of chapter 99 of the HTSUS (6th Round – 9903.88.11), correcting the description of “Dental X-ray alignment and positioning apparatus.”

ADDITIONAL INFORMATION

Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of July 6, 2018 (83 Fed. Reg. 28710). 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, they should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS in ACE).

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.

For ease of reference, a summary of Section 301 actions are provided below:

[See latest chart with CSMS #39997241, below]

For more information related to the eleventh round of products of China excluded from Section 301 duties, please refer 84 Fed. Reg. 49564, issued September 20, 2019.

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 should be emailed to Traderemedy@cbp.dhs.gov.

Related Messages: #38840764, 19-000332- 19-000244, 19-000212, 19-000155, 19-000052

Finally, CSMS #39997241 – Eleventh Round of Products Excluded from Section 301 Duties (Tranche 2), distributed on September 27, 2019, provides guidance relating to the $16 Bn. Action (Tranche 2):

Instructions for importers, brokers, and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 84 Fed. Reg. 49600 are as follow:

  • In addition to reporting the regular Chapters 39, 73, 76, 84, 85, 86, 87 and 90 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.17 (Articles the product of China, as provided for in U.S. note 20(v) 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 9903.88.17 is submitted.

ADDITIONAL INFORMATION

Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of August 23, 2018 (83 FR 40823). 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, they should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS in ACE).

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. For ease of reference, a summary of Section 301 actions are provided below:

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 should be emailed to Traderemedy@cbp.dhs.gov

Related Messages: #38840764, 19-000332- 19-000244, 19-000212, 19-000155, 19-000052, 38840764, 39169565, 39268267, #39981444, #39985407.