Cargo Systems Messaging Service
CSMS # 56517869 - GUIDANCE: Section 301 China COVID Product Exclusion Extensions
The purpose of this memorandum is to provide guidance on the 16-day transition period for all 81 medical-care product COVID exclusions, extending them through May 31, 2023, and the further extension of 77 of the COVID exclusions through September 30, 2023.
BACKGROUND
On May 17, 2023, United States Trade Representative (USTR) published Federal Register Notice (FRN) 88 FR 31580 to provide a 16-day transition period for all COVID exclusions, extending them through May 31, 2023, and to further extend 77 of the COVID exclusions through September 30, 2023.
The 81 COVID exclusions scheduled to expire on May 15, 2023, and extended through May 31, 2023, are listed in Annex B to FRN 86 FR 63438. The further extension of 77 of the COVID exclusions through September 30, 2023 are listed in Annex B in FRN 88 FR 31580.
The exclusion extensions are available for any product that meets the description of the product exclusion. Further, the scope of each exclusion and modification is governed by the scope of the ten-digit Harmonized Tariff Schedule of the United States (HTSUS) subheadings and product descriptions in the Annex to this notice.
The functionality for the acceptance of the COVID exclusion extensions were available in the Automated Commercial Environment (ACE) as of 7 am eastern daylight time, May 18, 2023.
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- Per Annex A in FRN 88 FR 31580, effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 15, 2023, and before 11:59 p.m. eastern daylight time on May 31, 2023, the article description of heading 9903.88.66 of the Harmonized Tariff Schedule of the United States is modified by deleting “May 15, 2023,” and by inserting “June 1, 2023,” in lieu thereof.
ο Importers shall not submit the corresponding Chapter 99 HTSUS classification for the Section 301 duties when HTSUS 9903.88.66 is submitted.
- Per Annex B in FRN 88 FR 31580, effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on June 1, 2023, and before 11:59 p.m. eastern daylight time on September 30, 2023. subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) is modified: by inserting the following new heading 9903.88.68 in numerical sequence.
ο Importers shall not submit the corresponding Chapter 99 HTSUS classification for the Section 301 duties when HTSUS 9903.88.68 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.
Importers who entered Chinese goods subject to product exclusions and paid Section 301 duties between May 15, 2023, through May 18, 2023, should file Post Summary Corrections (PSCs) correcting the entry summary line to remove HTS 9903.88.01, 9903.88.02, 9903.88.03, 9903.88.04 and 9903.88.15 to obtain refunds of duties paid under HTS 9903.88.66.
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.
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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