**Section 301 Summary Charts Corrected**
BACKGROUND
On September 20, 2019, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 84 FR 49600 announcing the decision to grant the eleventh round of certain exclusion requests from the 25 percent duty assessed under the Section 301 investigation related to goods from China ($16B Action - Tranche 2).
These product exclusions relate to the imposed additional duties announced in 83 FR 40823 on Chinese goods with an annual trade value of approximately $16 billion as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The product exclusions announced in this notice will retroactively apply as of the August 23, 2018 effective date of the $16 billion action (Tranche 2), and will extend for one year after the publication of 84 FR 49600.
The exclusions are available for any product that meets the description as set out in the Annex to Federal Register Notice 84 FR 49600, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings and product descriptions in the Annex; not by the product descriptions set out in any particular request for exclusion. The Annex to 84 FR 49600 link is embedded in this document for ease of reference.
The functionality for the acceptance of the eleventh round of products of China excluded from Section 301 duties will be available in the Automated Commercial Environment (ACE) as of September 29, 2019.
GUIDANCE
Instructions for importers, brokers, and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 84 FR 49600 are as follow:
- In addition to reporting the regular Chapters 39, 73, 76, 84, 85, 86, 87 and 90 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.17 (Articles the product of China, as provided for in U.S. note 20(v) 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 9903.88.17 is submitted.
ADDITIONAL INFORMATION
Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of August 23, 2018 (83 FR 40823). 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, importers may protest the liquidation.
Reminder: when importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, they should refer to CSMS 39587858 (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 ease of reference, a summary of Section 301 actions are provided below:
Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative. Questions related to Section 301 entry-filing requirements should be emailed to Traderemedy@cbp.dhs.gov.
Related Messages: #38840764, 19-000332- 19-000244, 19-000212, 19-000155, 19-000052, 38840764, 39169565, 39268267, #39981444, #39985407
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