On February 11, 2020, the US Trade Representative (USTR) will publish in the Federal Register a notice announcing USTR’s determination to grant additional exclusions to the $34 billion Sec. 301 action (25% additional duties), as specified in the Annex to the notice, and makes amendments to certain notes in the Harmonized Tariff Schedule of the United States (HTSUS). The USTR will continue to issue decisions as necessary.
The product exclusions will apply as of the July 6, 2018 effective date of the $34 billion action, and will extend to October 1, 2020 at 11:59 p.m. EDT. The amendments announced in the notice are retroactive to the date the original exclusions were published and do not further extend the period for the original exclusions.
Exclusions from the duties have been established in two different formats: (1) as an exclusion for an existing 10-digit subheading from within an 8-digit subheading covered by the $34 billion action, or (2) as an exclusion reflected in specially prepared product descriptions. The exclusions announced in this notice take the form of four specially prepared product descriptions. Exclusions are available for any products that meet the descriptions in the Annex, regardless of whether the importer filed an exclusion request. Furthermore, the scope of the exclusions are governed by the scope of the 10-digit HTSUS subheadings and product descriptions in the Annex, and not by the product descriptions set out in any particular request for exclusion.
The Annex also makes technical amendments to certain notes in the HTSUS. Subparagraphs B(1–26) clarify periodic revisions in US notes 20(i)(6–7), 20(m)(16–18), 20(m)(27), 20(n)(13–27), 20(n)(30), 20(q)(19–21), and 20(x)(20) to subchapter III of chapter 99 of the HTSUS, as set out in the Annexes of the notices published at 84 Fed. Reg. 11153 (March 25, 2019), 84 Fed. Reg. 25895 (June 4, 2019), 84 Fed. Reg. 32821 (July 9, 2019), 84 Fed. Reg. 49564 (September 20, 2019), and 84 Fed. Reg. 52567 (October 2, 2019).
In order to correct typographical or other ministerial errors, subparagraphs B(27– 29) of the Annex make amendments to US notes 20(n)(86), 20(q)(102), and 20(q)(170) to subchapter III of chapter 99 of the HTSUS, as set out in the Annexes of the notices published at 84 Fed. Reg. 32821 (July 9, 2019) and 84 Fed. Reg. 49564 (September 20, 2019).
Customs and Border Protection will issue instructions on entry guidance and implementation.