BACKGROUND

On July 15, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 42970, removing one Harmonized Tariff Schedule of the United States (HTSUS) statistical reporting number from the listed products covered under the 9903.88.19 product exclusion round to the Section 301 duty related to goods from China ($34B Action – Tranche 1).

On July 16, 2020, the USTR published Federal Register (FR) Notice 85 FR 43291, adding one HTS statistical reporting number to U.S. note 20(y), covered under the 9903.88.20 product exclusion round for China ($16B – Tranche 2). Additionally, 85 FR 43291 announced amendments to previously granted product exclusions for China ($16B – Tranche 2).

The amendments related to the imposed additional duties on Chinese goods with an annual trade value of approximately $34 billion and $16 billion are retroactive to the date of publication of the original exclusions and do not extend the period for the original exclusions. Please see the attached summary chart of Section 301 duties and product exclusion notifications to determine the original exclusion date for the respective amendment(s).

The amendments apply to any product that meets the description as set out in the Annexes to 85 FR 42970 and 85 FR 43291, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the 10-digit HTSUS headings and product descriptions provided in the Annexes to 85 FR 42970 and 85 FR 43291, not by the product descriptions set out in any particular request for exclusion.

The functionality for the acceptance of imported merchandise covered by these amendments will be available in the Automated Commercial Environment (ACE) as of 7 am eastern standard time, July 23, 2020.

GUIDANCE

Instructions for importers, brokers, and filers on submitting entries to Customs and Border Protection (CBP) that are affected by the amendments from the Section 301 measures are referenced in the FR Notices below.

• Per 85 FR 42970, USTR removed statistical reporting number 8501.52.4000 from U.S. note 20(x)(97), covered under the 9903.88.19 product exclusion round of China ($34B Action – Tranche 1).  Importers can no longer report this statistical reporting number in conjunction with the 9903.88.19 product exclusion round.
• In addition to reporting HTS 8501.52.4000 for the amendment to certain products in ($16B – Tranche 2) U.S. note 20(y), as listed in Annex Paragraph A of 85 FR 43291, importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTSUS 9903.88.20 is submitted.
• In addition to reporting the regular Chapter 90 of the HTSUS, per Annex Paragraph B of 85 FR 43291, for the conforming changes listed in U.S. note 20(o) covered under the 9903.88.12 product exclusion round; U.S. note 20(v) covered under the 9903.88.17 product exclusion round; or U.S. note 20(y) covered under the 9903.88.20 product exclusion round; importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when the applicable exclusion 99 number is submitted.

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. 

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 if within the protest filing timeframe.  The latest guidance on the process for submitting retroactive claims for product exclusions to CBP is found in CSMS 42566154.

In situations where an importer has requested a product exclusion and the request is pending with the USTR, importers or their licensed representative may submit a request to extend the liquidation of impacted unliquidated entry summaries to CBP.

Reminder: importers, brokers, and/or filers should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required) for guidance when filing an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise.

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.  Questions related to Section 301 entry-filing requirements, please refer to CSMS message #42203908 (Information on Trade Remedy Questions and Resources) https://content.govdelivery.com/accounts/USDHSCBP/bulletins/283fb04.

Related Messages: 43400564, 43401456, 43134617, 43044185, 43043838, 42839255, 42837261, 42693720, 42566220, 42355914, 42203908, 42219187, 42181055, 42180527, 42048963, 41955151, 42049352, 48134749, 40003027, 40002982, 40001360, 19-000052, 41702837, 41179115, 41052773, 41538917, 40984510, 40901928, 49710742, 40330403, 40208881, 40969690, 40564257, 39587690, 39587858, 39473933, 39268267, 39169565, 38840764, 19-000332, 19-000260, 19-000244, 19-000238, 19-000236, 19-000212