Cargo Systems Messaging Service

CSMS #41878462 - GUIDANCE: Section 301 China – Additional Product Exclusions and Amendments to Previous Exclusion Rounds on Certain Products Covered under Tranche 1 - $34B –Action

The purpose of this memorandum is to provide guidance on amendments to existing product exclusions relating primarily to expired Harmonized Tariff Schedule of the United States (HTSUS) classifications, and the addition of new product exclusions covered under Tranche 1 – $34B Action.

BACKGROUND
On February 11, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 7816 announcing the decision to grant additional exclusions, as specified in the Annex to the FR notice, and amending certain existing exclusions for Section 301 duties on China ($34B Action - Tranche 1).

Exclusions to Section 301 trade remedies are available for any product that meets the description as set out in the Annex to Federal Register Notice 85 FR 7816, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the HTSUS 10-digit classification and product descriptions in the Annex; not by the product descriptions set out in any particular request for exclusion. The new product exclusions will apply retroactive to the July 6, 2018 effective date of the $34 billion action, and will extend to October 1, 2020 at 11:59 p.m. EDT.

The amendments for the expired HTSUS and modification to existing product exclusions announced in the FR notice are retroactive to the date the original exclusions were published and do not further extend the period for the original exclusions.

The functionality for the acceptance of the additional exclusions and amendments on certain products for articles from China specific to Tranche 1 – $34B Action of Section 301 duties will be available in the Automated Commercial Environment (ACE) by 7am, Eastern Standard Time on February 25, 2020.

GUIDANCE
Instructions for importers, brokers and filers on submitting entries to CBP containing the new product exclusions granted are listed below.

New Product Exclusions granted as provided for in U.S. note 20(x) to this subchapter under HTS 9903.88.19:
• Certain products described in HTS 8413.70.2004, 8413.91.9050, 8413.91.9060, 8417.90.0000, 8501.52.4000

Amendments to Previous Exclusions
• For the 29 amendments to previous product exclusions, please refer to 85 FR 7816, to obtain the list of the amendments to the expired HTSUS classifications and the modification to the existing product exclusions covered under Tranche 1-$34B Action.

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.

Duty exclusions granted by the USTR are retroactive for imports on or after the initial July 6, 2018 effective date of the Tranche 1, $34B Action, of the China Section 301 trade remedies. 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, but within 180 days of the liquidation action, importers may protest the liquidation.

Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, please reference CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTSUS when 98 or 99 HTSUS are required).

For ease of reference, a summary of Section 301 duties and product exclusion notifications are provided in the tables below:

For more information related to the additional exclusions or amendments of products of China excluded from Section 301 duties, please refer to 85 FR 7816, issued February 11, 2020.

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 #40969690 (Information on Trade Remedy Questions and Resources) https://content.govdelivery.com/accounts/USDHSCBP/bulletins/27125da