CSMS# 19-000289 - GUIDANCE: Fifth Round of Products Excluded from Section 301 Duties (Tranche 1)
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06/07/2019 10:11 AM EDT
Trade Policy Updates
The purpose of this memorandum is to provide guidance regarding the submission of entries for imported products covered under the fifth round of the Section 301 product exclusions.
BACKGROUND:
On June 4, 2019, the U.S. Trade Representative published Federal Register (FR) Notice 84 FR 11573 announcing the decision to grant the fifth round of certain exclusion requests from the 25 percent duty assessed under the Section 301 investigation related to goods from China (Tranche 1). The product exclusions announced in this notice will apply as of the July 6, 2018 effective date and will extend for one year after the publication of this notice.
As set out in the Annex to this notice (84 FR 11573), the exclusions are established in two different formats: (1) as an exclusion for an existing 10-digit subheading from within an 8-digit subheading covered by the $34 billion action, or (2) as an exclusion reflected in specially prepared product descriptions. In particular, the exclusions take the form of one 10-digit HTSUS subheading, and 88 specially prepared product descriptions.
In accordance with the 83 FR 67463 notice, the exclusions are available for any product that meets the description in the Annex, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the product descriptions in the Annex to this notice, and not by the product descriptions set out in any particular request for exclusion.
The functionality for the acceptance of the fifth round of products excluded from Section 301 duties is available in the Automated Commercial Environment (ACE) as of June 11, 2019.
INSTRUCTIONS FOR FILING ENTRIES SUBJECT TO PRODUCT EXCLUSIONS:
Instructions on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures in 84 FR (11573) are as follows:
In addition to reporting the regular Chapters 84, 85 & 90 classifications of the Harmonized Tariff Schedule of the United States (HTSUS) for the imported merchandise, importers shall report the HTSUS classification 9903.88.10 (Articles the products of China, as provided for in U.S. note 20(m) 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 9903.88.10 is submitted.
ADDITIONAL INFORMATION:
Duty exclusions granted by the USTR are retroactive on imports to the initial effective date of July 6, 2018. To request an administrative refund for previous imports of duty-excluded products granted by the USTR, importers may follow the same entry filing instructions as above to file a PSC on unliquidated entry summaries. If the entry has already liquidated, importers may protest the liquidation.
Reminder: When submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, importers should refer to CSMS 18-000657 (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 more information, please refer to the June 4, 2019 Federal Register notice 84 FR 11573.
Questions from the importing community concerning ACE entry rejections involving product exclusion numbers should be referred to their CBP Client Representative. Questions related to Section 301 entry filing requirements should be emailed to Traderemedy@cbp.dhs.gov.
The purpose of this memorandum is to provide guidance regarding the submission of entries for imported products covered under the fifth round of the Section 301 product exclusions.
BACKGROUND:
On June 4, 2019, the U.S. Trade Representative published Federal Register (FR) Notice 84 FR 11573 announcing the decision to grant the fifth round of certain exclusion requests from the 25 percent duty assessed under the Section 301 investigation related to goods from China (Tranche 1). The product exclusions announced in this notice will apply as of the July 6, 2018 effective date and will extend for one year after the publication of this notice.
As set out in the Annex to this notice (84 FR 11573), the exclusions are established in two different formats: (1) as an exclusion for an existing 10-digit subheading from within an 8-digit subheading covered by the $34 billion action, or (2) as an exclusion reflected in specially prepared product descriptions. In particular, the exclusions take the form of one 10-digit HTSUS subheading, and 88 specially prepared product descriptions.
In accordance with the 83 FR 67463 notice, the exclusions are available for any product that meets the description in the Annex, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the product descriptions in the Annex to this notice, and not by the product descriptions set out in any particular request for exclusion.
The functionality for the acceptance of the fifth round of products excluded from Section 301 duties is available in the Automated Commercial Environment (ACE) as of June 11, 2019.
INSTRUCTIONS FOR FILING ENTRIES SUBJECT TO PRODUCT EXCLUSIONS:
Instructions on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures in 84 FR (11573) are as follows:
In addition to reporting the regular Chapters 84, 85 & 90 classifications of the Harmonized Tariff Schedule of the United States (HTSUS) for the imported merchandise, importers shall report the HTSUS classification 9903.88.10 (Articles the products of China, as provided for in U.S. note 20(m) 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 9903.88.10 is submitted.
ADDITIONAL INFORMATION:
Duty exclusions granted by the USTR are retroactive on imports to the initial effective date of July 6, 2018. To request an administrative refund for previous imports of duty-excluded products granted by the USTR, importers may follow the same entry filing instructions as above to file a PSC on unliquidated entry summaries. If the entry has already liquidated, importers may protest the liquidation.
Reminder: When submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, importers should refer to CSMS 18-000657 (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 more information, please refer to the June 4, 2019 Federal Register notice 84 FR 11573.
Questions from the importing community concerning ACE entry rejections involving product exclusion numbers should be referred to their CBP Client Representative. Questions related to Section 301 entry filing requirements should be emailed to Traderemedy@cbp.dhs.gov.