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BACKGROUND
On August 11, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 48627 on certain exclusions from the Section 301 duty related to goods from China (Tranche 4A - $300B Action).
These product exclusions relate to the imposed additional duties announced in 84 FR 43304 and 84 FR 45821 on goods covered under list 1/Annex A Tranche 4A - $300B Action).
The product exclusions will retroactively apply as of the 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 as set out in the Annex to 85 FR 48627, 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 and product descriptions provided in the Annex to 85 FR 48627, 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 ninth round of products from China excluded from the Section 301 Tranche 4A-$300B Action 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 Customs and Border Protection (CBP) containing products granted exclusions from the Section 301 measures as set out in 85 FR 48627 are provided below.
Articles from China, as provided for in U.S. note 20(hhh) to this subchapter, will be covered by the exclusion granted by the USTR for imported merchandise that is subject to the exclusion and for which the exclusion is claimed.
In addition to reporting the regular Chapters 39, 70, 84, and 95 classifications of the HTSUS for the imported merchandise as listed in 85 FR 48627, importers shall report the HTSUS classification of 9903.88.55.
Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.55 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 under this exclusion 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 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.
The Section 301 Tranches and Rounds Chart can be found here.
Information Provided by U.S. Customs and Border Protection.
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