Customs Updates: Section 301 Tranche 4A - $300B Product Exclusion Extensions
On September 2, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 54616, extending certain product exclusions previously covered by FR Notices 85 FR 13970, 85 FR 15244, 85 FR 17936, 85 FR 28693, 85 FR 35975, 85 FR 41658, 85 FR 44563, and 85 FR 48627 from Section 301 related to goods from China (Tranche 4A - $300B Action).
The product exclusion extension will apply as of September 1, 2020, and will extend through December 31, 2020.
The exclusions are available for any product that meets the description as set out in the Annex to 85 FR 54616, 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 54616, not by the product descriptions set out in any particular request for exclusion.
The functionality for the acceptance of the imported merchandise covered under this extension round of products excluded from China under Section 301 Tranche 4A-$300B Action will be available in the Automated Commercial Environment (ACE) as of 7 a.m. eastern daylight time, September 10, 2020.
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 54616 are provided below.
• Per 85 FR 54616, in addition to reporting the regular Chapters 1, 5, 34, 39, 40, 48, 49, 52, 55, 61, 62, 63, 65, 72, 84, 85, 90, 91, 92, 94, 95, 96, and 97 classifications of the HTSUS for the imported merchandise, as of September 1, 2020, importers shall report the HTSUS classification 9903.88.57 (Articles, the product of China, as provided for in U.S. note 20(jjj) 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 9903.88.57 is submitted.
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.
Have questions related to anything you've read above? Feel free to connect with us using the Contact form at the bottom of the Home page.