Cargo Systems Messaging Service

CSMS # 63577329 - GUIDANCE: Section 301 China Tariffs Four Year Review Increasing Additional Tariffs on Certain Imported Products

The purpose of this message is to provide guidance on the modifications made to the Section 301 China Tariff Four Year Review, increasing tariff rates on five subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), covering certain tungsten products, wafers, and polysilicon.

BACKGROUND

On September 18, 2024, the United States Trade Representative (USTR) announced modifications to the actions taken in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation pursuant to the four-year review.  The modifications announced in Federal Register Notice (FRN) 89 FR 76581 and increased Section 301 duties on imports from China of certain products, including steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products.

On December 16, 2024, the USTR announced additional tariff rate increases on five subheadings under the Section 301 Four Year Review for imports from the People’s Republic of China of certain tungsten products, wafers, and polysilicon.  The rates on certain tungsten products will increase to 25 percent, and the rates for certain solar wafers and polysilicon will increase to 50 percent.  These tariff increases will take effect on January 1, 2025. See FRN 89 FR 101682.

In addition, USTR is making a technical correction to heading 9903.91.08 in Annex B(4) to insert the previously announced additional 100 percent duties that are to be effective on January 1, 2026.

The Automated Commercial Environment (ACE) functionality for filing entries is effective December 28, 2024.

ENTRY FILING INSTRUCTIONS

This guidance provides instructions for importers, brokers, and filers on submitting entries to the United States Customs and Border Protection (CBP) containing increased tariffs on certain products of China that are provided for in headings 9903.91.05 and 9903.91.11 and listed in subdivisions (f) and (j), respectively, of U.S. note 31 to subchapter III of chapter 99 of the HTSUS.

The tariff increases take effect on January 1, 2025, with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time.  See 89 FR 101682.

For certain polysilicon and wafer products of China classified in the following 8-digit subheadings below, importers shall submit heading 9903.91.05 to pay the additional 50 percent rate of duty:

(1)  2804.61.00 (Silicon containing by weight not less than 99.99 percent of silicon)

(2)  3818.00.00 (Chemical elements doped for use in electronics, in the form of discs, wafers etc., chemical compounds doped for electronic use).

For certain tungsten products of China classified in the following 8-digit subheadings below, importers shall submit heading 9903.91.11 to pay the additional 25 percent rate of duty:

(1)  8101.94.00 (Tungsten, unwrought (including bars and rods obtained simply by sintering)

(2)  8101.99.10 (Tungsten bars and rods (o/than those obtained simply by sintering), profiles, plates, sheets, strip and foil)

(3)  8101.99.80 (Tungsten, articles nesoi).

FOREIGN TRADE ZONE

Products of China listed in 89 FR 101682, which are subject to the additional duties imposed, and are admitted into a U.S. foreign trade zone, except any product that is eligible for admission under “domestic status” as defined in 19 CFR 146.43, may only be admitted as “privileged foreign status,” as defined in 19 CFR 146.41, effective as of the date that the additional duties are imposed.

These imports which are admitted into a U.S. foreign trade zone on or after 12:01 a.m. eastern standard time on January 1, 2025, may only be admitted as “privileged foreign status.”  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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