Cargo Systems Messaging Service

CSMS #41955151 - GUIDANCE: Section 301 Product Exclusions from Tranche 4A - $300B Round from China (9903.88.39)

BACKGROUND

The U.S. Trade Representative (USTR) made the decision to grant certain exclusions from the Section 301 duty on goods covered under list 1/Annex A from China ($300B Action - Tranche 4) 84 FR 43304. 

These product exclusions relate to the imposed additional duties announced in 84 FR 43304 and 84 FR 45821 on Chinese goods with an annual aggregate trade value of approximately $300 billion.  The product exclusions will retroactively apply as of September 1, 2019, effective date of the $300 billion action (Tranche 4A), and will extend through September 1, 2020. 

The exclusions are available for any product that meets the description in the Annex (see attachment), regardless of whether the importer filed an exclusion request.  Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings described in the Annex, and not by the product descriptions set out in any particular request for exclusion. 

The functionality for the acceptance of the imported merchandise covered under the first round of products excluded from the Section 301 Tranche 4A-$300B Action will be available in the Automated Commercial Environment (ACE) as of 7am eastern standard time, March 10, 2020.

GUIDANCE

The exclusions are reflected in eight 10-digit HTSUS subheadings, which cover 59 separate exclusion requests.  Instructions for importers, brokers, and filers on submitting entries to CBP are set out below. 

• In addition to reporting the regular Chapters 34, 39, 40, 48, 62 and 63 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.39 (Articles the product of China, as provided for in U.S. note 20(rr) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative) for imported merchandise subject to the exclusion).
• Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.39 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. 

Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of September 1, 2019.  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.

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, refer them to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required).

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

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

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