Cargo Systems Messaging Service

CSMS #50834787 - GUIDANCE: Modifications to the Harmonized Tariff Schedule of the United States – Section 301 China Remedy

The purpose of this message is to provide guidance on new Section 301 modifications made to certain Harmonized Tariff Schedule (HTS) classifications within the Harmonized Tariff Schedule of the United States (HTSUS).

BACKGROUND

On December 23, 2021, the President issued Presidential Proclamation 10326, making modifications to the HTSUS pursuant to 19 U.S.C. 3005(a).  See 86 FR 73593.  Proclamation 10326 incorporates by reference U.S. International Trade Commission (ITC) Publication 5240, entitled “Modifications to the Harmonized Tariff Schedule of the United States under Section 1206 of the Omnibus Trade and Competitiveness Act of 1988 and for Other Purposes” (Publication 5240). 

To modify the HTSUS to maintain the duty treatment with respect to actions pursuant to section 301 of the Trade Act of 1974, the HTSUS is modified as set forth in Annex II of Publication 5240.  The modifications laid out in Publication 5240 are effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after January 27, 2022.

The functionality for the acceptance of the imported merchandise covered by these modifications will be available in the Automated Commercial Environment (ACE) as of 7 a.m. eastern daylight time, January 25, 2022.

GUIDANCE

The new Section 301 modifications made to certain HTS classifications within the HTSUS are laid out in pages 185-195 of Publication 5240.  The new HTS will maintain the duty treatment with respect to actions pursuant to section 301 of the Trade Act of 1974 under the appropriate U.S. Note provided below and will take effect on January 27, 2022. 

• Per Annex II.A, certain HTS classifications under Chapters 28, 84, 85, 87, 88, and 90 of U.S. note 20(b) are modified.
• Per Annex II.A, certain HTS classifications under Chapters 39, 85, 87 of U.S. note 20(d) are modified.
• Per Annex II.A, certain HTS classifications under Chapters 3, 4, 7, 8, 12, 20, 22, 24, 25, 29, 32, 34, 38, 40, 44, 55, 57, 58, 59, 68, 70, 71, 74, 81, 84, 85, 87, 89, and 94 of U.S. note 20(f) are modified.
• Per Annex II.A, certain HTS classifications under Chapters 4, 8, 12, 15, 17, 20, 21, 29, 36, 38, 40, 44, 49, 62, 70, 85, 90, 91, 94, 95, and 97 of U.S. note 20(s) are modified.
• Importers shall submit the corresponding Chapter 99 HTSUS number for the Section 301 duties when the new 1-97 Chapter HTSUS numbers laid out in Publication 5240 are submitted. 

ADDITIONAL INFORMATION

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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