CSMS# 19-000260 - Section 301 Products Excluded from Duties - Liquidation Extension Request

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05/22/2019 03:18 PM EDT

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BACKGROUND:

On July 6, 2018, the U.S. Trade Representative (USTR) imposed additional duties on certain goods of China as a part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. As a part of the determination, USTR established a product exclusion process for goods subject to the 25 percent duty assessed under the Section 301 investigation. All of the product exclusions issued so far apply as of the July 6, 2018 effective date of the imposition of additional duties under Section 301 and extend for one year after the publication of the exclusion notice in the Federal Register.



Per the USTR Federal Register notices, the product exclusions are available for any product that meets the description in the annex to Federal Register notice, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the 10-digit headings and product descriptions in the annex, and not by the product descriptions set out in any particular request for exclusion.



The functionality for the acceptance of products excluded from Section 301 duties is available in the Automated Commercial Environment (ACE).



INSTRUCTIONS FOR FILING ENTRIES SUBJECT TO PRODUCT EXCLUSIONS:



CBP has issued instructions, via CSMS messages, on how to submit entries covering excluded products for each round of product exclusions granted so far by USTR. The relevant Federal Register notices and corresponding CSMS messages are below:





Section 301 HTS Federal Register Notice Published Message

1st Round 9903.88.05 83 FR 67463 12/28/ 2018 CSMS 19-000052

2nd Round 9903.88.06 84 FR 11152 03/25/2019 CSMS 19-000155

3rd Round 9903.88.07 84 FR 16310 04/18/2019 CSMS 19-000212

4th Round 9903.88.08 84 FR 21389 05/04/2019 CSMS 19-000244



Entries Coved by Granted Product Exclusions: Product exclusions granted by USTR so far are retroactive to July 6, 2018, for unliquidated entries or entries that are liquidated but not final. Once a product exclusion is granted by USTR, an Importer of Record (IOR) may request an administrative refund by filing a Post Summary Correction (PSC) for unliquidated entries that are covered by the exclusion. If an entry is liquidated prior to the filling of a PSC, a party may file a protest.



Entries Covered by Pending Product Exclusions Requests: As the IOR, if you have a pending product exclusion request with USTR, or are importing a product that is covered by such a pending exclusion request, and you are concerned that a corresponding entry may liquidate before USTR renders a decision on the exclusion request, you can:



(1) request an extension of the liquidation deadline, and file a PSC no later than 15 days before the extended date of liquidation; and/or



(2) file a protest within the 180 day period following liquidation. When filing a protest, the protestant should identify the pending product exclusion decision from USTR as a basis for the protest. Upon receiving USTR’s decision on the product exclusion, the protestant should submit the exclusion information to CBP, as additional information pursuant to 19 C.F.R. 174.28.



If a protest is filed, CBP will postpone making a determination on protests that include a claim identifying a pending product exclusion. Once USTR completes the exclusion processing, CBP will process these protests pursuant to USTR’s exclusion determination. That is, CBP will refrain from denying or granting a party’s protest before the importer receives a final determination from USTR regarding its product exclusion request.



Questions from the importing community concerning extending liquidation and filing protests should be emailed to otentrysummary@cbp.dhs.gov. Questions related to Section 301 entry filing requirements should be emailed to Traderemedy@cbp.dhs.gov.