On December 30, 2020, CBP issued CSMS #45318223 – GUIDANCE: Section 301 Modifications and Product Exclusion Extensions from China Duties (9903.88.62, 9903.88.63, 9903.88.64, 9903.88.65), which provides guidance for the USTR exclusions granted in a Federal Register notice published on December 29, 2020. It follows:
The purpose of this message is to provide guidance regarding the modification of the Section 301-China action and the extension of product exclusions from additional duties on certain medical-care products to address COVID-19.
Background
On December 29, 2021, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 85831, modifying the Section 301-China action, and extending product exclusions previously covered by multiple tranches and FR Notices. In light of the rising spread and ongoing efforts to combat COVID-19, the USTR has determined that maintaining or re-imposing additional duties on certain medical-care products subject to the Section 301 action is no longer appropriate, and that the application of additional duties to these products could impact U.S. preparedness to address COVID-19.
The modifications to exclude additional products announced in 85 FR 85831 will apply as of January 1, 2021 until March 31, 2021. Certain product exclusion which were initially set to expire on December 31, 2020 will be extended through March 31, 2021. Also, one exclusion under HTS 9027.90.5650 and 9903.88.06, which was originally set to expire on March 25, 2021, was deleted and replaced with an exclusion which will expire on March 31, 2021.
The exclusions listed are available for any product that meets the description as set out in the Annexes to 85 FR 85831, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the 10-digit HTS headings and product descriptions provided in the Annexes to 85 FR 85831, not by the product descriptions set out in any particular request for exclusion.
The functionality for the acceptance of the modifications and extended product exclusions will be available in the Automated Commercial Environment (ACE) as of 7 am eastern standard time, January 7, 2021.
Guidance
Instructions for importers, brokers, and filers on submitting entries to CBP containing granted exclusions by the USTR from the Section 301 measures are set out below:
· Per 85 FR 85831 Annex A, in addition to reporting the regular Chapters 84, 85, and 90 classifications of the HTS for the imported merchandise, importers shall report the HTS classification 9903.88.62 (Articles, the product of China related to Tranche 1 – $34B Action, as provided for in U.S. note 20(ooo) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
· Per 85 FR 85831 Annex A, paragraph B, USTR removed HTS 9027.90.5650 from U.S. note 20(i), covered under the 9903.88.06 product exclusion round of China (Tranche 1 – $34B Action). Importers can no longer report this statistical reporting number in conjunction with the 9903.88.06 product exclusion round. Effective January 1, 2021, HTS 9027.90.5650 will be covered under the 9903.88.62 product exclusion extension round, and will expire on March 31, 2021.
· Per 85 FR 85831 Annex B, in addition to reporting the regular Chapters 39, 84, and 90 classifications of the HTS for the imported merchandise, importers shall report the HTS classification 9903.88.63 (Articles, the product of China related to Tranche 2 – $16B Action, as provided for in U.S. note 20(ppp) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
· Per 85 FR 85831 Annex C, in addition to reporting the regular Chapters 28, 34, 38, 39, 40, 48, 56, 65, 84, 85, and 90 classifications of the HTS for the imported merchandise, importers shall report the HTS classification 9903.88.64 (Articles, the product of China related to Tranche 3 – $200B Action, as provided for in U.S. note 20(qqq) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
· Per 85 FR 85831 Annex D, in addition to reporting the regular Chapters 34, 39, 40, 48, 52, 55, 61, 62, 63, and 90 classifications of the HTS for the imported merchandise, importers shall report the HTS classification 9903.88.65 (Articles, the product of China related to Tranche 4A – $300B Action, as provided for in U.S. note 20(rrr) 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 9903.88.62, 9903.88.63, 9903.88.64, or 9903.88.65 are 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.
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.
For ease of reference, a summary of Section 301 duties and product exclusion notifications is attached.
Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative. 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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