Updated: Dec 29, 2019
On October 21, 2019, the Office of the U.S. Trade Representative (USTR) announced the process to obtain product exclusions from List 4 of the Section 301 tariffs on certain goods of Chinese origin.
Section 301 List 4 was published on August 20, 2019 in Federal Register Notice (FRN) 84 FR 43304 and was broken down into two annexes, A and C; this product exclusion process is for Annex A only.
According to the announcement, the USTR will publish a Federal Register notice next week, outlining the criteria for the proposed exclusion process and will allow the public to request exclusions of a product from the additional duties. The USTR will open the electronic submission portal from October 31, 2019 through January 31, 2020.
On October 2, 2019, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 84 FR 52567 announcing the decision to grant the eighth round of certain exclusion requests from the 25 percent duty assessed under the Section 301 investigation related to goods from China ($34B Action - Tranche 1).
These product exclusions relate to the imposed additional duties announced in 83 FR 28710 on Chinese goods with an annual trade value of approximately $34 billion as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The product exclusions announced in this notice will retroactively apply as of the July 6, 2018 effective date of the $34 billion action (Tranche 1), and will extend for one year after the publication of 84 FR 52567.
The exclusions are available for any product that meets the description as set out in the Annex to Federal Register Notice 84 FR 52567, 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, which includes the Annex is embedded in this message.
The functionality for the acceptance of the eighth round of product exclusions for articles from China specific to Tranche 1 of Section 301 duties is available in the Automated Commercial Environment (ACE) as of October 8, 2019.
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 84 FR 52567 are as follows:
In addition to reporting the regular Chapters 84, 85, 88 and 90 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.19 (Articles the product of China, as provided for in U.S. note 20(x) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative) for imported merchandise subject to the exclusion.Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.19 is submitted.Paragraph “B” of the Annex to 84 FR 52567 corrects a previous exclusion round; U.S. note 20(q) to subchapter III of chapter 99 of the HTSUS (9903.88.14), deleting “Machine tool stands having leveling, stabilizing, attachment or other special features (described in statistical reporting number 8466.30.8000). Paragraph “C” of the Annex to 84 FR 52567 corrects a previous exclusion round; U.S. note 20(q) to subchapter III of chapter 99 of the HTSUS (9903.88.14), deleting “Granulating machines not specifically designated for use with specific particulate materials, each valued more than $25,000 (described in statistical reporting number 8479.89.9499). Paragraph “D” of the Annex to 84 FR 52567 corrects a previous exclusion round; U.S. note 20(q) to subchapter III of chapter 99 of the HTSUS (9903.88.14), deleting “Vertical or single shaft shredding machines of a kind suitable for use in the recycling industry, weighing over 10,000 kg but not over 15,000 kg each (described in statistical reporting number 8479.89.9499). Paragraph “E” of the Annex to 84 FR 52567 corrects a previous exclusion round; U.S. note 20(q) to subchapter III of chapter 99 of the HTSUS (9903.88.14), deleting “CB radio antennas (described in statistical reporting number 8529.10.9100).
Duty exclusions granted by the USTR as set out in 83 FR 28710 are retroactive for imports on or after the initial effective date of July 6, 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.
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, they should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required).
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.
For ease of reference, a summary of Section 301 actions on Products of China are provided below. Note the change in sequential numbering of product exclusions granted. Product exclusion announcements will no longer be referenced in sequential order of overall Section 301 product exclusions. Moving forward they will be identified in sequential order (round) specific to the Tranche it relates to.
For more information related to the eighth round of products excluded specific to Tranche 1 of Section 301 duties for articles of China, please refer to 84 FR 52567, issued October 2, 2019.
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 should be emailed to Traderemedy@cbp.dhs.gov.
The USTR’s press release can be found here:
The draft of the FRN can be found here:
The FRN including the classifications affected can be found here: