CSMS #50516041 - GUIDANCE: Section 301 China Conforming Amendment (with attachment)

U.S. Customs and Border Protection sent this bulletin at 12/27/2021 01:53 PM EST

Cargo Systems Messaging Service

CSMS #50516041 - GUIDANCE: Section 301 China Conforming Amendment

The purpose of this message is to provide guidance regarding the U.S. Trade Representative’s (USTR) conforming amendment to a previously granted and extended Section 301 product exclusion, replacing Harmonized Tariff Schedule of the United States (HTSUS) number 3401.30.5000 with HTSUS number 3401.11.5000 effective November 30, 2020.

BACKGROUND

The USTR published Federal Register (FR) Notices 85 FR 48600 (August 11, 2020), 85 FR 85831 (December 29, 2020), 86 FR 13785 (March 10, 2021), 86 FR 54011 (September 29, 2021), and 86 FR 63438 (November 16, 2021). These FR Notices granted and subsequently extended a product exclusion for HTSUS number 3401.30.5000 from Section 301 China duties.

On September 30, 2020, U.S. Customs and Border Protection (CBP) issued a notice on the tariff classification of certain nonwoven wipes. Revocation of Eleven Ruling Letters, Modification of One Ruling Letter and Proposed Revocation of Treatment Relating to the Tariff Classification of Nonwoven Wipes, Customs Bulletin and Decisions, Vol 54, No. 38, at 58 (Sep. 30, 2020). See the notice here. CPB's notice affected an active product exclusion for HTSUS number 3401.30.5000, as set out at 85 FR 48600, 85 FR 85831, 86 FR 13785, 86 FR 54011, and 86 FR 63438.

On December 7, 2021, the USTR published 86 FR 69350, making one technical amendment to the exclusion for HTSUS number 3401.30.5000, replacing it with HTSUS number 3401.11.5000 effective November 30, 2020.

The exclusion listed is available for any product that meets the description as set out in the Annexes to 85 FR 48600, 85 FR 85831, 86 FR 13785, 86 FR 54011, and 86 FR 63438, 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 numbers and product descriptions provided in the Annexes to 85 FR 48600, 85 FR 85831, 86 FR 13785, 86 FR 54011, and 86 FR 63438, not by the product descriptions set out in any particular request for exclusion.

The functionality for the acceptance of the technical amendment was available in the Automated Commercial Environment (ACE) as of 7:00 am eastern standard time, December 16, 2021.

GUIDANCE

Instructions for importers, brokers, and filers on submitting entries to CBP containing granted exclusions by the USTR from the Section 301 measures are set out below:

Per 86 FR 69350 Annex A, with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on November 30, 2020 and before 11:59 p.m. eastern daylight time on December 31, 2020, U.S. note 20(iii)(37) to subchapter III of chapter 99 of the HTSUS is amended by deleting “3401.30.5000” and by inserting “3401.30.5000 prior to November 30, 2020; described in statistical reporting number 3401.11.5000 effective November 30, 2020” in lieu thereof.
Per 86 FR 69350 Annex B, with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on January 1, 2021 and before 11:59 p.m. eastern daylight time on November 30, 2021, note 20(qqq)(16) to subchapter III of chapter 99 of the HTSUS is amended by deleting “3401.30.5000” and by inserting “3401.11.5000” in lieu thereof.
Per 86 FR 69350 Annex C, with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on December 1, 2021 and before 11:59 p.m. eastern daylight time on May 31, 2022, note 20(sss)(iii)(13) to subchapter III of chapter 99 of the HTSUS is amended by deleting “3401.30.5000” and by inserting “3401.11.5000” in lieu thereof.
Importers shall not submit the corresponding Chapter 99 HTSUS number for the Section 301 duties when HTSUS numbers 9903.88.56, 9903.88.64, 9903.88.66 are submitted.

POST SUMMARY CORRECTIONS

Importers who entered nonwoven wipes under HTSUS number 3401.30.5000 and claimed the exclusion from additional Section 301 duties, as of November 20, 2020, should file Post Summary Corrections (PSCs) to correct their entries and properly pay Section 301 duties.

Importers who entered nonwoven wipes under HTSUS number 3401.11.5000 and paid Section 301 duties, as of November 30, 2020, should file PSCs to obtain refunds on duties paid.

To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a 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.

Importers are requested to file PSCs within 60 days from the date this CSMS is published.

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.

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

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Section 301 Tranches and Rounds chart 120621.pdf

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