Cargo Systems Messaging Service
CSMS # 55229384 - GUIDANCE: Section 301 China Conforming and Technical Amendments
The purpose of this message is to provide guidance regarding the amendment of Section 301 China duties and product exclusions to conform with certain changes to the Harmonized Tariff Schedule of the United States (HTSUS) to reflect modifications to Harmonized System statistical categories.
BACKGROUND
On February 10, 2023, the U.S. Trade Representative (USTR) published 88 FR 8986 making conforming and technical amendments to exclusions outlined in Annex I and II to provisions in the HTSUS associated with the actions in the section 301 investigation of China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation.
Annex I makes a conforming amendment to U.S. note 20 subdivision (ttt)(iv)(42), as set out in the Annex to the notice published at 87 FR 17380 (March 28, 2022). The conforming amendment is effective as of January 1, 2023.
Annex II makes a technical amendment to U.S. note subdivisions 20(qq)(20), 20(iii)(50) and 20(ttt)(iii)(36) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS), as set out in the Annexes of the notices published at 85 FR 6674 (February 5, 2020), 85 FR 48600
85 FR 48600 (August 11, 2020), and 87 FR 17380 (March 28, 2022), to correct the descriptions of the articles covered by the exclusions. These technical amendments are retroactive to the date of publication of the original exclusion.
The functionality for the acceptance of the conforming amendment is available in the Automated Commercial Environment (ACE) as of 7 a.m. Eastern Daylight Time, on January 10, 2023.
GUIDANCE
Instructions for importers, brokers, and filers on submitting entries to U.S. Customs and Border Protection (CBP) containing Section 301 duties and exclusions related to these amendments are set out below:
Annex I makes a conforming amendment to U.S. note 20 subdivision (ttt)(iv)(42), as set out in the Annex to the notice published at 87 FR 17380 (March 28, 2022)
- Note 20(ttt)(iv)(42) (9903.88.67) to subchapter III of chapter 99 of the HTSUS is modified by deleting “9404.90.1000” and by inserting “9404.90.1000 prior to January 1, 2023; described in statistical reporting number 9404.90.1060 or statistical reporting number 9404.90.1090 effective January 1, 2023” in lieu thereof.
Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.67 is submitted.
Importers may submit a post summary correction to request a refund of duties for any entries filed on or after the effective date of January 1, 2023, per 88 FR 8986.
Annex II makes a technical amendment to U.S. note subdivisions 20(qq)(20), 20(iii)(50) and 20(ttt)(iii)(36) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS).
- Note 20(qq)(20) (9903.88.38) to subchapter III of chapter 99 of the HTSUS is modified by deleting ‘‘cuprous oxide and’’ and by inserting ‘‘copper oxide or’’ in lieu thereof. Effective September 24, 2018, and before August 7, 2020.
- Note 20(iii)(50) (9903.88.56) to subchapter III of chapter 99 of the HTSUS is modified by deleting ‘‘cuprous oxide and’’ and by inserting ‘‘copper oxide or’’ in lieu thereof. Effective August 7, 2020, and through December 31, 2020.
- Note 20(ttt)(iii)(36) (9903.88.67) to subchapter III of chapter 99 of the HTSUS is modified by deleting ‘‘cuprous oxide and’’ and by inserting ‘‘copper oxide or’’ in lieu thereof. Effective October 12, 2021, and through September 30, 2023.
Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.38, 9903.88.56 and 9903.88.67 are submitted.
Importers may submit a post summary correction to request a refund of duties for any entries filed on or after the effective dates listed above per 88 FR 8986.
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.
Specifically, if importers enter Chinese goods subject to the conforming and technical amendments under HTSUS classification 9903.88.38, 9903.88.56 and 9903.88.67 on or after their respective effective dates per 88 FR 8986, and pay Section 301 duties, importers should file Post Summary Corrections, to obtain a refund of duties paid.
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 #CSMS #52417905 (Information on Trade Remedy Questions and Resources) CSMS #52417905 - UPDATE: Information on Trade Remedy Questions and Resources (govdelivery.com).
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