On September 26, 2019, Customs issued instructional messages related to the new round of Section 301 exclusions by the USTR, which were published in the Federal Register on September 20, 2019.
A. List 1 ($34B Action) Guidelines
CSMS #33985407 of September 26, 2019, provides instructions for importers, brokers and filers to use HTS #9903.88.14 when filing entries for excluded products listed in Annex of Federal Register 84 FR 49564 (September 20, 2019). Paragraph B to the Annex corrects a previous exclusion description for “dental x-ray alignment and position apparatus.”
Exclusions are retroactive to the initial date of sanctions (July 6, 2018) and are valid through September 20, 2020 (one year after the publication in the Federal Register).
B. List 2 ($16B Action) Guidelines
CSMS #39997241 of September 27, 2019, provides instructions for importers, brokers and filers to use HTS #9903.88.17 when filing entries for excluded products listed in Annex of Federal Register 84 FR 49600 (September 20, 2019).
Exclusions are retroactive to the initial date of sanctions (August 23, 2018) and valid through September 20, 2020 (one year after the publication in the Federal Register).
C. List 3 ($200B Action) Guidelines and Set Provisions in Lists 3 and 4
CSMS #39981444 of September 26, 2019, provides guidance for entering List 3 merchandise excluded from Section 301 duties (See Annex A, 84 FR 49591 of Sept 20, 2019). Importers are instructed to use HTS 9903.88.18 for items subject to the exclusions. The September 20 exclusions are retroactive to September 24, 2018, and remain valid until September 20, 2020-one year from publication in the Federal Register.
CSMS #39981444 also clarifies CBP’s instructions on entering sets and components. Annexe B to Federal Register Notice 84 FR 49591 identifies specific HTS numbers for sets. Part A applies to those sets in List 3 (9903.88.03 or 9903.88.09) and Part B applies to those sets in List 4 Annex A (9903.88.15). The intent is to apply Section 301 duties only once on products of a set provision.
If the component(s) in the set is not subject to Section 301 duties, then the HTS# associated with the set will have the applicable duty rate applied as per the procedures outlined with the respective Tranche (list). If, however, the set and the component(s) are subject to Section 301 duties, then importers and brokers are required to follow the guidance provided in CSMS #39981444 on transmitting the correct HTS code and duty rate according to the applicable Tranche for the component(s).
D. Submission of Entry Summaries, Post Summary Corrections and/or Protests
When submitting entry summaries on excluded items, all filers (importers, brokers, and others) are reminded to refer to CSMS #39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required).
To request a refund of duties paid, importers should file a Post Summary Correction (PSC) within the filing time frame for PSCs. If outside the filing time frame, importers should file protests on the liquidation referencing the appropriate above Federal Register notice.
The above CSMS messages also contain a summary of the 301 Actions including Federal Register notices, duty rates, relevant CSMS, rounds of exclusions granted, effective date and HTS to use.
Functionality for acceptance of the above exclusions and support for the set provisions are available in ACE beginning on September 29, 2019.
E. Section 301 Duty Increases
It is still anticipated that the Section 301 duties will increase from 25% to 30% on October 15, 2019, for Lists 1 through 3. List 4B is anticipated to go into effect on December 15, 2019, at the current rate for List 4A of 15%.
For further information or questions about this or other customs issues, contact Adrienne Braumiller, [email protected], or George R. Tuttle, III at [email protected]
