On February 8, 2019, US Customs and Border Protection (CBP) issued CSMS# 19-000050, entitled, Filing PRE-TFTEA (CORE) and TFTEA Drawback Claims with Section 301 and/or 201 Duties. The CSMS is reproduced below:

GUIDANCE:

Effective immediately, drawback filers can submit claims related to Section 301 and/or 201 duties. Filers will no longer receive error messages related to unit of measure (UOM) when transmitting drawback claims for Section 301 and/or 201 duties. Previously, filers received a UOM mismatch error because the underlying import did not have a UOM associated to a Chapter 99 HTSUS. If the filer left the UOM blank, they received an additional error message because the UOM is a mandatory data element field.

FILING REQUIREMENTS:

Filers are required to provide the Chapter 99 HTSUS tariff number related to Section 301 and/or 201 duties, and the associated Chapter 1 to 97 HTSUS tariff number on ALL claims.

If any drawback claim subject to Section 301 and/or 201 duties was previously filed and accepted in ACE, the filers are required to “perfect” the claim. To “perfect” a claim, filers must contact their Drawback Specialist and request the claim be returned to trade control. The filers are then required to list both HTSUS tariff numbers (as described above) on their claims and resubmit to CBP within 5 business days.

SUBSTITUTION AND NAFTA DRAWBACK CLAIM GUIDANCE:

This guidance applies to both Section 301 and 201 duties. Goods subject to Section 232 are ineligible for refund of 232 duties, per Presidential Proclamation 9739 and 9740.

  • Pre-TFTEA Substitution Claims: 301/201 duties are refundable, in full, on pre-TFTEA substitution claims.
  • TFTEA Substitution Claims: 301/201 duties are refundable on TFTEA substitution claims, even if subject to the TFTEA lesser of [value] rule. If subject to the TFTEA lesser of [value] rule, the amount will be limited by the value of the substituted merchandise when it is lower than the value of the imported merchandise.
  • NAFTA Claims (pre and post TFTEA): 301/201 duties may be refundable on NAFTA claims subject to the lesser of [duty] rule, but only when the total amount of Canadian/Mexican duties paid is higher than the total amount of duties paid in the United States. The amount of 301/201 duties refunded under the NAFTA lesser of [duty] rule will be limited by the total amount of duties paid on the merchandise imported into Canada/Mexico.

19 U.S.C 1313(p) CLAIMS:

Due to a pending technical fix, please do not file any 19 U.S.C. 1313(p) claims with the subject duties at this time. Future guidance will be sent once this issue has been resolved. If you have a 1313(p) claim on file with Section 301 and/or 201 duties, please do not request to “perfect” this claim until further guidance has been received.

RESOURCES:

The list of impacted tariff classifications for Section 301 are found at the following links:

https://www.cbp.gov/trade/programs-administration/entry-summary/section-301-trade-remedies

https://www.cbp.gov/document/guidance/section-301-htsus-reference-guide

Federal Register 83 FR 28710 – http://www.gpo.gov/fdsys/pkg/FR-2018-06-20/pdf/2018-13248.pdf

Federal Register 83 FR 40823 – http://www.gpo.gov/fdsys/pkg/FR-2018-08-16/pdf/2018-17709.pdf

Federal Register 83 FR 47974 – http://www.gpo.gov/fdsys/pkg/FR-2018-09-21/pdf/2018-20610.pdf

Federal Register 83 FR 65198 – https://www.federalregister.gov/documents/2018/12/19/2018-27458/notice-of-modification-of-section-301-action-chinas-acts-policies-and-practices-related-to

For more information regarding Section 201 duties, please reference the following link: https://www.cbp.gov/trade/programs-administration/entry-summary/section-201-trade-remedies

Contact your Client Representative for assistance with technical questions regarding the input of the required tariff numbers.

Direct questions regarding this update to OTDRAWBACK@cbp.dhs.gov .