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CSMS #42837261 - GUIDANCE: Section 301 Tranche 4A - $300B: Fourth Round of Product Exclusions from China (9903.88.47)

BACKGROUND

On May 13, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 28693 announcing the decision to grant the fourth round of certain requested exclusions from the Section 301 duty related to goods covered under List 1 Annex A (Tranche 4A - $300B Action).

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 effective date of the $300 billion action (Tranche 4A), and will extend through September 1, 2020. 

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 28693, 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 the fourth round of products of China excluded from Section 301, Tranche 4A - $300B Action duties will be available in the Automated Commercial Environment (ACE) by 7am, Eastern Daylight Time on May 21, 2020.

GUIDANCE

Instructions for the trade on submitting entries to CBP containing the Section 301 product exclusions announced in 85 FR 28693 are set out below:

• In addition to reporting the regular Chapters 33, 39, 65, 84 and 85 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.47 (Articles, the product of China, as provided for in U.S. note 20(zz) 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 exclusion under HTS 9903.88.47 is claimed.
   

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, but within 180 days of the liquidation action, importers may protest the liquidation. The latest guidance on the process for submitting claims to CBP for retroactive product exclusions is found in CSMS 42566154.

Reminder: Refer to CSMS 39587858 for instructions on the order of reporting for multiple HTSUS on an entry summary when Chapter 98 or 99 HTS are required.

For ease of reference, a summary of Section 301 duties and product exclusion notifications is attached.

Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative.  For questions related to Section 301 entry-filing requirements, please refer to CSMS 42203908 for information on Trade Remedy questions and resources. 

Related CSMS: 42486753, 42219187, 42051464, 42049352, 41955151, 41538917, 40003027, 40984510, 40969690, 39587858, 39587690, 39473933, 19-000260, 19-000052