On June 15, 2020, US Customs and Border Protection issued CSMS #43044185 – GUIDANCE: Section 301 Tranche 3 – $200B: 14th Round of Product Exclusions from China (9903.88.48), reproduced below:

Background

On May 28, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 32094 announcing the decision to grant the 14th round of certain requested exclusions from the Section 301 duty related to goods from China ($200B Action – Tranche 3).

These product exclusions relate to the imposed additional duties announced in 83 FR 47974 on Chinese goods with an annual trade value of approximately $200 billion.  The product exclusions announced in 85 FR 32094 retroactively apply as of the September 24, 2018 effective date of the $200 billion action (Tranche 3), and will extend through August 7, 2020. 

The exclusions are available for any product that meets the description as set out in the Annex to 85 FR 32094, 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 in the Annex; not by the product descriptions set out in any particular request for exclusion.  For ease of reference, a link to the entire Federal Register Notice is embedded in this message.

The functionality for the acceptance of the 14th round of products of China excluded from Section 301 duties will be available in the Automated Commercial Environment (ACE) as of 0700 Eastern Standard Time, June 4, 2020.

Guidance

Instructions for importers, brokers and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 85 FR 32094 are set out below.

  • In addition to reporting the applicable Chapters 1-97 classifications of the HTSUS for the imported merchandise as listed in 85 FR 32094, importers shall report the HTSUS classification 9903.88.48 (Articles, the product of China, as provided for in U.S. note 20(aaa) 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 9903.88.48 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 are retroactive for imports on or after the initial effective date of September 24, 2018.  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.

Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer them to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required).

For ease of reference, a summary of Section 301 duties and product exclusion notifications are attached.

Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative.  For questions related to Section 301 entry-filing requirements, please refer to CSMS message #42203908 (Information on Trade Remedy Questions and Resources) https://content.govdelivery.com/accounts/USDHSCBP/bulletins/283fb04 

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