Cargo Systems Messaging Service
CSMS # 53676546 - GUIDANCE: Section 301 China Conforming Amendments
The purpose of this message is to provide guidance regarding the amendment of Section 301 China duties and product exclusions to conform with certain changes to the Harmonized Tariff Schedule of the United States (HTSUS) to reflect Harmonized System modifications adopted by the World Customs Organization and changes to statistical categories.
BACKGROUND
On October 14, 2022, the U.S. Trade Representative (USTR) published 87 FR 62485 making conforming amendments in Annex I and II to legal note provisions in the HTSUS associated with the actions in the section 301 investigation of China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation.
Annex I makes technical modifications to the Section 301 duties as set out in the Annexes to the notices published at 85 FR 85831 (December 29, 2020), 86 FR 13785 (March 10, 2021), and 86 FR 63438 (November 16, 2021) and U.S. notes 20(b) to chapter 99 of the HTSUS. The conforming amendments are effective as of October 14, 2022.
Annex II makes additional amendments to Section 301 exclusions to accommodate conforming changes as set out in the Annexes to the notices published at 86 FR 63438 (November 16, 2021), 87 FR 33871 (June 3, 2022), and 87 FR 17380 (March 28, 2022) and U.S. notes 20(sss)(iii)(6) and (8); and U.S. notes 20(ttt)(iii)(9),(11),(179) to chapter 99 of the HTSUS. These amendments were effective on July 1, 2022.
The functionality for the acceptance of the conforming amendments will be available in the Automated Commercial Environment (ACE) 7 a.m. Eastern Daylight Time, October 20, 2022.
GUIDANCE
Instructions for importers, brokers, and filers on submitting entries to U.S. Customs and Border Protection (CBP) containing Section 301 duties and exclusions related to these amendments are set out below:
Annex I makes conforming amendments to the HTSUS to accommodate technical modifications to Section 301 duties under U.S. notes 20(b), 20(f), and 20(s)(i) to subchapter III of chapter 99 of the HTSUS.
- Note 20(b) (9903.88.01), Note 20(f) (9903.88.03), and Note 20(s)(i) (9903.88.15) are amended by deleting the following subheading numbers where listed:
3402.11.40
5703.20.10
6201.11.00
7019.39.50
7019.59.30
7019.59.40
7019.59.70
7019.59.90
7419.99.50
8541.40.95
9013.90.50
No action is required for these deletions, as these deletions relate to technical corrections of Section 301 China measures for HTSUS subheadings which no longer exist.
Note 20(f) (9903.88.03) and Note 20(s)(i) (9903.88.15) are amended by inserting the following subheading numbers: 2202.99.91 and 1704.90.78, respectively.
As noted in USTR’s Federal Register notice, Cargo Systems Messaging Service (CSMS) No. 51166038 (sent Feb. 28, 2022): https://content.govdelivery.com/accounts/
USDHSCBP/bulletins/30cbb56), addressed duty treatment for HTSUS subheading 2202.99.91 as provided for under HTSUS 9903.88.03, effective January 27, 2022, in light of changes to the HTSUS made by the USITC in accordance with Presidential Proclamation 10326. In a similar manner, CBP continued collection of the duty under HTSUS subheading 1704.90.78 as provided for under HTSUS 9903.88.15, effective January 27, 2022.
Importers shall continue to submit the corresponding Chapter 99 HTS number and Section 301 duties for HTS 9903.88.03 and 9903.88.15 related to imports under HTS 2202.99.91 and 1704.90.78.
Annex II makes additional amendments to accommodate conforming changes to Section 301 exclusions under the HTSUS: U.S. notes 20(sss)(iii)(6) and (8); and U.S. notes 20(ttt)(iii)(9), (11), (179), and (180).
- Note 20(sss)(iii)(6) (9903.88.66, 9903.88.67) to subchapter III of chapter 99 of the HTSUS is modified by deleting “5603.12.0090” and by inserting “5603.12.0090 prior to July 1, 2022; 5603.12.0070 or 5603.12.0095 effective July 1, 2022” in lieu thereof.
- Note 20(sss)(iii)(8) (9903.88.66, 9903.88.67) to subchapter III of chapter 99 of the HTSUS is modified by deleting “5603.92.0090” and by inserting “5603.92.0090 prior to July 1, 2022; 5603.92.0070 or 5603.92.0095 effective July 1, 2022” in lieu thereof.
- Note 20(ttt)(iii)(9) (9903.88.66, 9903.88.67) to subchapter III of chapter 99 of the HTSUS is modified by deleting “5603.12.0090” and by inserting “5603.12.0090 prior to July 1, 2022; 5603.12.0070 or 5603.12.0095 effective July 1, 2022” in lieu thereof.
- Note 20(ttt)(iii)(11) (9903.88.66, 9903.88.67) to subchapter III of chapter 99 of the HTSUS is modified by deleting “5603.92.0090” and by inserting “5603.92.0090 prior to July 1, 2022; 5603.92.0070 or 5603.92.0095 effective July 1, 2022” in lieu thereof.
- Note 20(ttt)(iii)(179) (9903.88.67) to subchapter III of chapter 99 of the HTSUS is modified by deleting “9403.20.0081” and by inserting “9403.20.0081 prior to July 1, 2022; described in statistical reporting number 9403.20.0082 effective July 1, 2022” in lieu thereof.
- Note 20(ttt)(iii)(180) (9903.88.67) to subchapter III of chapter 99 of the HTSUS is modified by deleting “9403.20.0081 effective July 1, 2019” and by inserting “9403.20.0081 effective July 1, 2019 through June 30, 2022; described in statistical reporting number 9403.20.0082 effective July 1, 2022” in lieu thereof.
Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.66 and 9903.88.67 are submitted. Importers may submit a post summary correction to request a refund of duties for any entries filed on or after the effective date of July 1, 2022 per 87 FR 62485.
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.
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 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.
In situations where an importer has requested a product exclusion and the request is pending with the USTR, importers or their licensed representative may submit a request to extend the liquidation of impacted unliquidated entry summaries to CBP.
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. This chart has been updated to include the dates that each Section 301 exclusion is currently scheduled to terminate.
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 #42203908 (Information on Trade Remedy Questions and Resources) https://content.govdelivery.com/accounts/USDHSCBP/bulletins/283fb04.
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