CORRECTION: Section 301 China Duties Extension of Product Exclusions

CORRECTION: CSMS #50183808 – GUIDANCE: Section 301 China Extension of Product Exclusions

The purpose of this message is to provide guidance regarding the extension of product exclusions from additional Section 301 China duties on certain medical-care products to address COVID-19.

BACKGROUND

On November 16, 2021, the USTR published 86 FR 63438, providing a 16-day transition period for all COVID exclusions through November 30, 2021, and extending 81 of the COVID exclusions for an additional 6 months.

The 16-day transition period will extend through November 30, 2021, and 81 COVID exclusions will be further extended through May 31, 2022.

The exclusions listed are available for any product that meets the description as set out in the Annexes to 86 FR 63438, regardless of whether the importer filed an exclusion request.  Further, the scope of each exclusion is governed by the scope of the 10-digit HTS headings and product descriptions provided in the Annexes to 86 FR 63438, not by the product descriptions set out in any particular request for exclusion. 

The functionality for the acceptance of the extended product exclusions will be available in the Automated Commercial Environment (ACE) as of 7 am eastern standard time, November 18, 2021.  Exclusion HTS subheading 9903.88.66 will be available in ACE as of 12 am December 1, 2021.

GUIDANCE

Instructions for importers, brokers, and filers on submitting entries to CBP containing granted exclusions by the USTR from the Section 301 measures are set out below:

  • Per 86 FR 63438 Annex A, in addition to reporting the regular Chapters 84, 85, and 90 classifications of the HTS for the imported merchandise, importers shall report the HTS classification 9903.88.62 (Articles, the product of China related to Tranche 1 – $34B Action, as provided for in U.S. note 20(ooo) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
  • Per 86 FR 63438 Annex A, in addition to reporting the regular Chapters 39, 84, and 90 classifications of the HTS for the imported merchandise, importers shall report the HTS classification 9903.88.63 (Articles, the product of China related to Tranche 2 – $16B Action, as provided for in U.S. note 20(ppp) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
  • Per 86 FR 63438 Annex A, in addition to reporting the regular Chapters 28, 34, 38, 39, 40, 48, 56, 65, 84, 85, and 90 classifications of the HTS for the imported merchandise, importers shall report the HTS classification 9903.88.64 (Articles, the product of China related to Tranche 3 – $200B Action, as provided for in U.S. note 20(qqq) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
  • Per 86 FR 63438 Annex A, in addition to reporting the regular Chapters 34, 39, 40, 48, 52, 55, 61, 62, 63, and 90 classifications of the HTS for the imported merchandise, importers shall report the HTS classification 9903.88.65 (Articles, the product of China related to Tranche 4A – $300B Action, as provided for in U.S. note 20(rrr) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
  • Per 86 FR 63438 Annex B, in addition to reporting the regular Chapters 28, 34, 38, 39, 48, 52, 55, 56, 62, 63, 65, 84, 85, and 90 classifications of the HTS for the imported merchandise, importers shall report the HTS classification 9903.88.66 (Articles, the product of China as provided for in U.S. note 20(sss) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
  • Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.62, 9903.88.63, 9903.88.64, 9903.88.65, or 9903.88.66 are 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. 

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.

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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View Section 301 Tranches and Rounds chart – November 15th, 2021

U.S. Customs and Border Protection sent this bulletin at 11/24/2021 09:47 AM EST