On June 23, 2020, U.S. Customs and Border Protection (CBP) issued Cargo Systems Messaging Service (CSMS) #43134617 as guidance on the fifth round of product exclusions for List 4A of the Section 301 trade remedies. These exclusions were announced in Federal Register Notice (FRN) 85 FR 35975.
According to the CSMS, duty exclusions granted by the USTR under this exclusion are retroactive for imports on or after the initial effective date of September 1, 2019. 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 time frame. If the entry is beyond the PSC filing time frame, importers may protest the liquidation if within the protest filing time frame. These exclusions will be available through September 1, 2020 under 9903.88.49.The following chart details exclusions per Tranche as well as provides the secondary HTSUS that should be used by importers when filing entry with CBP. The secondary HTSUS signals to CBP the merchandise is excluded from the applicable Tranche.
(Note the last round of exclusions was not yet included in the chart above.)
CSMS #43134617 reproduced below:
On June 12, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 35975 detailing certain exclusions from the Section 301 duty related to goods from China ($300B Action – Tranche 4).
The product exclusions will retroactively apply as of the September 1, 2019 effective date of the $300 billion action (Tranche 4A), and will extend through September 1, 2020.
The exclusions are available for any product that meets the description as set out in the Annex to 85 FR 35975, 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 provided in the Annex to FR notice 85 FR 35975; not by the product descriptions set out in any particular request for exclusion.
The functionality for the acceptance of the imported merchandise covered under the fifth round of products from China excluded from the Section 301 Tranche 4A-$300B Action will be available in the Automated Commercial Environment (ACE) as of 7 a.m. eastern daylight time, June 18, 2020.
Instructions for importers, brokers, and filers on submitting entries to Customs and Border Protection (CBP) containing products granted exclusions from the Section 301 measures as set out in 85 FR 35975 are provided below.
- Articles from China, as provided for in U.S. note 20(bbb) to this subchapter, will be covered by the exclusion granted by the USTR for imported merchandise that is subject to the exclusion and for which the exclusion is claimed.
- In addition to reporting the regular Chapters 05, 29, 39, 49, 52, 61, 62, 63, 72, 83, 84, 85, 90, 91, 94, 95 and 96 classifications of the HTSUS for the imported merchandise as listed in 85 FR 35975, importers shall report the HTSUS classification of 9903.88.49.
- Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.49 is submitted.
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 under this exclusion are retroactive for imports on or after the initial effective date of September 1, 2019. 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, review a summary of Section 301 duties and product exclusion notifications.
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).
Did you miss the deadline to file your exclusion or comments? Was your exclusion denied? Now is the time to review all exclusions granted for your HTS’s to determine whether they are applicable to your product. All granted exclusions may apply to any product that meets the USTR’s product description. If you are not tracking We can assist you to review the granted exclusions and strategize on how to timely file protests and post summary corrections to get refunds from U.S. Customs and Border Protection (CBP) of paid Section 301 duties.