BACKGROUND
On September 16, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 57925, announcing a technical amendment to extend certain previously granted exclusions under Section 301 related to goods from China (Tranche 3 - $200B Action). See 85 FR 48600 (August 11, 2020).
This amendment relates to the imposed additional duties announced in 83 FR 47974 as modified by 83 FR 49153 on Chinese goods with an annual trade value of approximately $200 billion. In May 2019, the USTR increased the additional duty to 25 percent. See 84 FR 20459. The USTR has granted a technical amendment to extend certain previously granted exclusions under 9903.88.56, announced in 85 FR 48600.
The technical amendment will apply as of August 7, 2020 and will extend through December 31, 2020.
The functionality for the acceptance of the imported merchandise covered by the technical amendment from China previously excluded from the Section 301 Tranche 3 - $200B Action will be available in the Automated Commercial Environment (ACE) as of 7 a.m. eastern daylight time, September 17, 2020.
GUIDANCE
Instructions for importers, brokers, and filers on submitting entries to Customs and Border Protection (CBP) that are affected by the technical amendment from the Section 301 measures as set out in 85 FR 57925 are provided below.
- For the technical amendment to U.S. note 20(iii) is modified by deleting “(described in statistical reporting number 9403.20.0050)” and inserting “(described in statistical reporting number 9403.20.0050 or 9403.20.0078) covered under the 9903.88.56 extending certain previously granted exclusions; importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when the exclusion 9903.88.56 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.
Duty exclusions granted by the USTR under this product exclusion extension amendment applies as of August 7, 2020, and continues through December 31, 2020. 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.
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