Cargo Systems Messaging Service

CSMS # 62411889 - GUIDANCE: Section 301 Four-Year Review Modifications

The purpose of this memorandum is to provide guidance on the modifications made to Section 301 pursuant to the findings of the four-year review of actions taken in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.

BACKGROUND

On September 18, 2024, United States Trade Representative (USTR) announced it would modify the actions being taken in the Section 301 investigation pursuant to the four-year review of actions taken in the Section 301 investigation.  The modifications announced in 89 FR 76581 include:

• Increasing section 301 duties on 382 Harmonized Tariff Schedule of the United States (HTSUS) subheadings and 7 statistical reporting numbers of the HTSUS under fourteen product groups (see Annex A).
• HTSUS modifications to impose additional duties, to increase rates of additional duties, and to exclude certain solar manufacturing equipment listed in Annex B from additional duties (see Annex C).
• Requiring importer certification for ship-to-shore cranes entering under exclusion (see Annex D).

Automated Commercial Environment (ACE) functionality for the acceptance of the increased duties and exclusions for solar manufacturing equipment and ship-to-shore cranes listed in Annexes A through E will be available as of 07:00 a.m. Eastern Daylight Time on September 27, 2024.

The new 54 record for the Importer’s Additional Declaration Type Code 10 (301 Ship-to-Shore Declaration) will also be available in ACE on September 27, 2024.

GUIDANCE

Per 89 FR 76581, tariff increases in 2024 are applicable with respect to products entered on or after September 27, 2024; tariff increases in 2025 and 2026 are applicable with respect to products entered on or after January 1 of the corresponding year.  Solar equipment exclusions included in Annex B are retroactive and applicable with respect to products that are entered on or after January 1, 2024, and before June 1, 2025. For goods entered on or after the effective date of the respective years, importers, brokers, and filers shall report the following HTSUS classification:

The annexes of the Federal Register notice at 89 FR 76581 list the appropriate Chapter 1 to 97 HTSUS numbers covered by each Chapter 99 HTSUS listed below.

Tariff modifications effective in 2024:

Effective with respect to entries on or after September 27, 2024, articles the product of China, as provided for in subdivision (b) of U.S. note 31 to this subchapter, should be entered under HTSUS 9903.91.01, subject to an additional 25 percent ad valorem duty.

Effective with respect to entries on or after September 27, 2024, articles the product of China, as provided for in subdivision (c) of U.S. note 31 to this subchapter, should be entered under HTSUS 9903.91.02, subject to an additional 50 percent ad valorem rate of duty.

Effective with respect to entries on or after September 27, 2024, except for enteral syringes as provided in heading 9903.91.10, articles the product of China, as provided for in subdivision (d) of U.S. note 31 to this subchapter, should be entered under HTSUS 9903.91.03, subject to an additional 100 percent ad valorem rate of duty.

Effective with respect to entries on or after September 27, 2024, certain cranes, articles the product of China, provided for in subheading 8426.19.00, other than those described in HTSUS 9903.91.09, should be entered under HTSUS 9903.92.10, subject to an additional 25 percent ad valorem rate of duty. 

Any other cranes not covered by the paragraph above and provided for in subheading 8426.19.00 are not covered the Section 301 duties but should be entered under HTS 9903.92.80.

Tariff modifications effective in 2025:

Effective with respect to entries on or after January 1, 2025, and before January 1, 2026, articles the product of China, as provided for in subdivision (e) of U.S. note 31 to this subchapter, should be entered under HTSUS 9903.91.04, subject to an additional 25 percent ad valorem rate of duty.

Effective with respect to entries on or after January 1, 2025, articles the product of China, as provided for in subdivision (f) of U.S. note 31 to this subchapter, should be entered under HTSUS 9903.91.05, subject to an additional 50 percent ad valorem rate of duty.

Tariff modifications effective in 2026:

Effective with respect to entries on or after January 1, 2026, articles the product of China, as provided for in subdivision (g) of U.S. note 31 to this subchapter, should be entered under HTSUS 9903.91.06, subject to an additional 25 percent ad valorem rate of duty.

Effective with respect to entries on or after January 1, 2026, articles the product of China, as provided for in subdivision (h) of U.S. note 31 to this subchapter, should be entered under HTSUS 9903.91.07, subject to an additional 50 percent ad valorem rate of duty.

Effective with respect to entries on or after January 1, 2026, articles the product of China, as provided for in subdivision (i) of U.S. note 31 to this subchapter, should be entered under HTSUS 9903.91.08, subject to an additional 100 percent ad valorem rate of duty.

EXCLUSIONS

Instructions for importers, brokers, and filers on submitting entries to U.S. Customs and Border Protection (CBP) containing Section 301 exclusions per 89 FR 76581, are set out below:

Effective with respect to entries on or after September 27, 2024, and before January 1, 2026, entries of enteral syringes, articles the product of China, as described in statistical reporting number 9018.31.0080 are covered by exclusion 9903.91.10. 

Effective with respect to entries on or after January 1, 2024, and before June 1, 2025, articles the product of China, solar manufacturing equipment as provided in U.S. note 20(www) to this subchapter, are covered by exclusion 9903.88.70. 

Effective with respect to entries on or after September 27, 2024, articles the product of China, notwithstanding subheading 9903.92.10, as described in statistical reporting number 8426.19.00 effective with respect to entries of ship-to-shore gantry cranes that are fulfilling in whole or in part an executed contract for sale dated prior to May 14, 2024, are covered by exclusion 9903.91.09. 

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 or after September 27, 2024, and prior to May 14, 2026, importers shall submit 9903.91.09 for the Section 301 exclusion when the following requirements below are met when entering HTSUS 8426.19.00:

• the imported ship-to-shore cranes that are fulfilling in whole or in part an executed contract for sale dated prior to May 14, 2024
• the importer completes the certification in Annex D and provides the completed certification as part of the importer’s electronic entry summary by uploading it to the Document Image System (DIS) in ACE at the time classification is declared under heading 9903.91.09 of the HTSUS

ADDITIONAL INFORMATION

The new 54 record for the Importer’s Additional Declaration Type Code 10 (301 Ship-to-Shore Declaration) will be deployed in ACE on September 27, 2024.  The CATAIR Entry Summary Create/Update has been updated to include a new 54 record “Specified new Importer’s Additional Declaration Type Code 10 (301 Ship-to-Shore Declaration).”  The CATAIR Error Dictionary has been updated to include new validations F845, F846 and F847.   

To request a refund of Section 301 duties paid on previous imports of solar manufacturing equipment 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 Cargo Systems Messaging Service (CSMS) 42566154.

Foreign Trade Zones

Any product listed in the Annexes of 89 FR 76581, which is subject to the additional duties and admitted into a U.S. foreign trade zone (FTZ), only may be admitted as “privileged foreign status” (PFS) effective as of the date that the additional duties are imposed, except any product that is eligible for admission under “domestic status.”

Privileged foreign merchandise will be subject to tariff classification according to its character, condition and quantity, at the rate of duty and tax in force on the date the application for privileged status is filed in proper form.

All such products will be subject upon entry for consumption to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading.

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, the Section 301 Tranches and Rounds Chart is attached. 

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