On January 11, 2021, US Customs and Border Protection (CBP) issued CSMS #45453497 – GUIDANCE: Revision of Section 301 Action: Enforcement of U.S. World Trade Organization Rights in Large Civil Aircraft Dispute, which is provided below:
The purpose of this message is to provide notice of the United States Trade Representative’s (USTR) determination to revise the list of products subject to additional duties under the Section 301 Large Civil Aircraft (LCA) remedies, imposing additional 15 percent duties on certain parts of large civil aircraft of France and Germany, and 25 percent duties on other products of France and Germany. The revisions to the listed products are effective for imports, or warehouse withdrawals for consumption, on or after 12:01 a.m. January 12, 2021.
Background
On October 18, 2019, the USTR imposed additional duties on certain products of the European Union (EU) and certain EU Member States in this Section 301 investigation to enforce U.S. World Trade Organization (WTO) rights in the Large Civil Aircraft (LCA) Dispute. See 84 FR 54245.
On February 21, 2020, the USTR published a Modification to the LCA Dispute in 84 FR 10204 to revise the action being taken by increasing the rate of additional duties on certain large civil aircraft, and by modifying the list of other products of certain current and former EU Member States subject to additional 25 percent duties.
On August 18, 2020, the USTR published a Modification to the LCA Dispute in 85 FR 50866, to modify the list of products subject to additional duties of 25 percent ad valorem on EU products.
On January 6, 2021, the USTR published FR Notice 86 FR 674, announcing additional 15 percent duties on certain parts of large civil aircraft of France and Germany, and 25 percent duties on other products of France and Germany.
Guidance
The revisions set out in Annex I to 86 FR 674 identify the products of France and Germany affected by the imposition of additional duties of 15 or 25 percent. Annex II, section 1, contains the unofficial descriptive list of the revisions made by 86 FR 674. Annex II, section 2, contains an unofficial, consolidated description of the action, reflecting the changes in Annex I.
As specified in Annex 1, the USTR has determined to alter the composition of the list of aircraft and non-aircraft products subject to the Section 301 action, imposing additional duties of 15 or 25 percent on certain products of France and Germany. These modifications are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight savings time on January 12, 2021. A complete list of products subject to the remedy and assessed duties are set out in FR notice 86 FR 674, and listed in the chart attached to this memorandum.
Additional Information
With the exception of any product that is eligible for admission under `domestic status’ as defined in 19 CFR 146.43, any product listed in Annex I to this Notice that is subject to the additional duty imposed by this determination, and is admitted into a U.S. foreign trade zone on or after 12:01 a.m. eastern standard time on January 12, 2021, only may be admitted as ‘privileged foreign status’ as defined in 19 CFR 146.41. Upon entry for consumption, such products will be subject to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading.
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).
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.
Related Messages: CSMS #43784137, 43762405, 41898289, 40430843, 40281968
