CSMS# 18-000498 - UPDATE: Section 301 Trade Remedies Assessed on China; Drawback Claims

You are subscribed to Trade Policy Updates for U.S. Customs and Border Protection. This information has recently been updated, and is now available.

08/23/2018 02:32 PM EDT

Trade Policy Updates

UPDATE: Section 301 Trade Remedies Assessed on Certain Products from China; Drawback Claims.



BACKGROUND:



On August 18, 2017, the Office of the United States Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 into the government of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. On June 20, 2018, the USTR published a Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301, imposing additional import duties on a list of Chinese products. See Federal Register 83 FR 28710 (June 20, 2018).



On August 16, 2018, the USTR published a Notice of Action providing for the imposition of additional import duties on a second list of Chinese Products. The August 16, 2018 list of products covered by the Section 301 remedy, which comprises 279 eight-digit Harmonized Tariff Schedule of the United States (HTSUS) subheadings, can be found in Annex A to the USTR’s August 16, 2018 notice of action. See Federal Register 83 FR 40823 (August 16, 2018).



GUIDANCE:



Products Covered by the June 20, 2018 List for the Section 301 Action



The additional import duties for Chinese goods covered by the June 20, 2018 list were effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Daylight Time on July 6, 2018.



In addition to reporting the Chapters 1-97 HTSUS classification of the imported merchandise, importers shall also report the 9903.88.01 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Section 301 trade remedy.



9903.88.01: 25% ad valorem additional duty for articles the product of China



Products Covered by the August 16, 2018 List for the Section 301 Action



The additional import duties for Chinese goods covered by the August 16, 2018 list of products subject to the Section 301 action are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Daylight Time on August 23, 2018.





Any article classified in a subheading covered by the August 16 list that is a product of China is subject to a 25% ad valorem duty rate, in addition to the general (Column 1) rate of duty for that particular subheading.



In addition to reporting the Chapter 1-97 HTSUS classification of the imported merchandise, importers shall also report the 9903.88.02 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Section 301 trade remedy.



9903.88.02: 25% ad valorem additional duty for articles the product of China



All Products Covered by Section 301 Duties



The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export.



DRAWBACK:



Section 301 duties are eligible for duty drawback.



FOR FURTHER INFORMATION:



For further information, please refer to the USTR’s Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 FR 28710 (June 20, 2018); and the August 16, 2018 Notice of Action Pursuant to Section 301, 83 FR 40823 (August 16, 2018).



Questions related to Section 301 entry filing requirements should be emailed to traderemedy@cbp.dhs.gov. Questions from the importing community concerning ACE rejections should be referred to their Client Representative.






Related CSMS No. 18-000493, 18-000419, 18-000409