On August 30, 2019, CBP issued CSMS # – UPDATE: Updated Information on Section 301 Trade Remedies to be Assessed on Certain Products of China; Fourth List of Products Subject to the Section 301 Remedy (Tranche 4) printed below in its entirety:
This message provides notice of modification to the action being taken in the Section 301 investigation which increases the rate of additional duty from 10 to 15 percent for the products of China covered by the $300 billion tariff action (Tranche 4) published on August 20, 2109.
BACKGROUND:
On August 20, 2019, the United States Trade Representative (USTR) published a Modification of Section 301 Action in 84 FR 43304 introducing another imposition of additional tariffs on products of China with an annual trade value of approximately $300 billion which is referred to as Tranche 4. The tariff subheadings subject to additional duties under Tranche 4 are separated into two lists with different effective dates – Annex A contains the formal Harmonized Tariff Schedule of the United States (HTSUS) language for list 1 and Annex B contains an informal description of the products in list 1. Annex C contains the formal HTSUS language for list 2 and Annex D contains an informal description of the products in list 2.
On August 30, 2019, in accordance with the specific direction of the President, the USTR published their determination to modify the action being taken in the Section 301 investigation by increasing the rate of additional duty from 10 to 15 percent for the products of China covered by the $300 billion tariff action (Tranche 4). See 84 FR 45821.
- List 1 will be in effect on September 1, 2019 with additional duty of 15 percent
- List 2 will be in effect on December 15, 2019 with additional duty of 15 percent
GUIDANCE:
Products Covered by Tranche 4, Annex A (Described in Annex B) – additional duty of 15 percent ad valorem is effective September 1, 2019
The additional import duties for Chinese goods covered by Annex A, published in the August 20, 2019 list of products subject to the Section 301 action, and are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on September 1, 2019. Any article classified in a subheading covered by Annex A that is a product of China is subject to a 15% ad valorem duty rate, in addition to the general (Column 1) rate of duty for that particular subheading. Therefore, in addition to regular chapter reporting requirements, report the following HTS number and duty rate.
| HTS Duty Rate 9903.88.15 15 percent |
Products Covered by Tranche 4, Annex C (Described in Annex D) –additional duty of 15 percent ad valorem is effective December 15, 2019
The additional import duties for Chinese goods covered by Annex C, published in the August 20, 2019 list of products subject to the Section 301 action, are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on December 15, 2019. Any article classified in a subheading covered by Annex C that is a product of China is subject to a 15% ad valorem duty rate, in addition to the general (Column 1) rate of duty for that particular subheading. Therefore, in addition to regular chapter reporting requirements, report the following HTS number and duty rate.
| HTS Duty Rate 9903.88.16 15 percent |
All Products Covered by Section 301 Duties and Chapter 98 and 99 Instructions
The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export. Please refer to CSMS 18-000624 for Chapter 98 and 99 filing instructions.
TRADE PREFERENCE PROGRAMS AND TEMPORARY REDUCTIONS IN RATES OF DUTY
Products of China that are covered by the Section 301 remedy and that are eligible for special tariff treatment under general note 3(c)(i) to the tariff schedule, or that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99, shall be subject to the additional duty imposed by headings 9903.88.01, 9903.88.02, 9903.88.03, 9903.88.04, 9903.88.09, 9903.88.15, and 9903.88.16.
FOREIGN TRADE ZONES
Any product listed in Annex A, except any product that is eligible for admission under ‘domestic status’ as defined in 19 CFR 146.43, which is subject to the additional duty imposed by this determination, and that is admitted into a U.S. foreign trade zone on or after 12:01 am eastern daylight time on September 1, 2019, only may be admitted as ‘privileged foreign status’ as defined in 19 CFR 146.41. Such products will be subject upon entry for consumption to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading.
Any product listed in Annex C, except any product that is eligible for admission under ‘domestic status’ as defined in 19 CFR 146.43, which is subject to the additional duty imposed by this determination, and that is admitted into a U.S. foreign trade zone on or after 12:01 am eastern daylight time on December 15, 2019, only may be admitted as ‘privileged foreign status’ as defined in 19 CFR 146.41. Such products will be subject upon entry for consumption to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading.
DRAWBACK
Section 301 duties are eligible for duty drawback.
PRODUCT EXCLUSIONS
The USTR will establish a process by which interested persons may request that particular products classified within an HTSUS subheading covered by Annex A and Annex C may be excluded from the additional duties. USTR will publish a separate notice describing the product exclusion process, including the procedures for submitting exclusion requests, and an opportunity for interested persons to submit oppositions to a request. CBP will also provide additional guidance on the matter as it becomes available. For ease of reference, Summaries of Section 301 Duties and Product Exclusion Notifications are provided in the tables below. Detailed information about a specific Tranche or Product Exclusion Round may be obtained from any of the source documents listed.
For more information related to Tranche 4 additional duties imposed on the tariff subheadings set out in Annex A/B and Annex C/D, please refer to 84 FR 43304, issued August 20, 2019 and 84 FR 45821, issued August 30, 2019. More information may also be found at https://www.cbp.gov/trade/remedies.
Related Messages: 18-000409, 18-000493, 18-000554, 19-000238, 19-000274, 19-000296, 19-000052, 19-000155, 19-000212, 19-000244, 19-000332, 38840764, 39169565, 39268267, 39473933
