• Deanna Clark-Esposito

Customs Updates: § 301 China Tranche 3 - $200B Product Exclusion Extensions


Background

On August 11, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 48600, extending certain product exclusions previously covered by FR Notices 84 FR 38717, 84 FR 49591, 84 FR 57803, 84 FR 61674, 84 FR 65882, 84 FR 69012, 85 FR 549, 85 FR 6674, 85 FR 9921, 85 FR 15015, 85 FR 17158, 85 FR 23122, 85 FR 27489, 85 FR 32094, 85 FR 38000, and 85 FR 42968from Section 301 related to goods from China (Tranche 3 - $200B Action).


The extension relates to the imposed additional duties announced in 83 FR 47974 on Chinese goods with an annual trade value of approximately $200 billion.


The product exclusion extension will apply as of August 7, 2020, and will extend through December 31, 2020.


The functionality for the acceptance of the imported merchandise covered by the extension of product exclusions that were previously covered under multiple product exclusion rounds from China excluded from the Section 301 (Tranche 3 - $200B Action) duty will be available in the Automated Commercial Environment (ACE) as of 7 a.m. eastern daylight time, August 20, 2020.


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 85 FR 48600, in addition to reporting the regular Chapter 3, 8, 16, 28, 29, 32, 34, 37, 38, 39, 40, 42, 44, 48, 50, 51, 54, 55, 56, 57, 58, 60, 65, 68, 69, 70, 73, 75, 76, 82, 83, 84, 85, 87, 90, 91, and 94 classifications of the HTSUS for the imported merchandise, as of August 7, 2020, importers shall report the HTSUS classification 9903.88.56 (Articles, the product of China, as provided for in U.S. note 20(iii) 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 9903.88.56 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. 


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.


Information Provided by U.S. Customs and Border Protection.


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