CSMS Update, News Post, US Customs & Border Protection

CSMS # 60400881 – GUIDANCE: Section 301 China Conforming Amendment

Posted on by Joe Dubecky
01
May

The purpose of this message is to provide guidance regarding the United States Trade Representative’s (USTR’s) conforming amendment to one previously reinstated Section 301 exclusion, replacing Harmonized Tariff Schedule of the United States (HTSUS) classification 2929.90.5090 with HTSUS classification 2929.90.5095 effective January 1, 2024.

BACKGROUND
On January 19, 2024, USTR published Federal Register Notice (FRN), “Notice of Conforming Amendment to Reinstated Exclusion:  China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” 89 FR 3703.  This FRN amends the HTSUS for a previously reinstated exclusion (see 87 FR 17380 (March 28, 2022)) to conform with certain changes to ten-digit statistical reporting categories of the HTSUS effective January 1, 2024. The amendment found in the Annex impacts U.S. note 20(ttt)(iii)(27) to subchapter III of chapter 99 of the HTSUS, as set out in the Annex at 87 FR 17380 (March 28, 2022), and went into effect January 1, 2024.

The Automated Commercial Environment (ACE) functionality for the acceptance of the conforming amendment will be available on January 25, 2024, as of 7:00 AM Eastern Standard Time.

GUIDANCE
Instructions for importers, brokers, and filers on submitting entries to U.S. Customs and Border Protection (CBP) containing Section 301 duty and exclusion related to this amendment is set out below:

U.S. note 20(ttt)(iii)(27) (9903.88.67) to subchapter III of chapter 99 of the HTSUS is modified by deleting “2929.90.5090” and by inserting “2929.90.5090 prior to January 1, 2024; described in statistical reporting number 2929.90.5095 effective January 1, 2024” in lieu thereof, with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on January 1, 2024, and before 11:59 p.m. eastern daylight time on May 31, 2024.

For entries on or after January 1, 2024, importers shall submit HTSUS classification 2929.90.5095 with HTSUS 9903.88.67.

Importers shall not submit the corresponding Chapter 99 HTSUS number for the Section 301 duties when HTSUS 9903.88.67 is 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 or requesting an extension of liquidation for pending product exclusion requests is found in CSMS 42566154.

Specifically, if importers enter Chinese goods during the period January 1 through January 24, 2024, subject to the conforming amendment under HTSUS classification 9903.88.67, and pay Section 301 duties, importers should file a PSC on or after January 25, 2024, to obtain a refund of duties paid.

Reminder: Importers, brokers, and/or filers should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTSUS when 98 or 99 HTSUS 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 #CSMS #52417905 (Information on Trade Remedy Questions and Resources) CSMS #52417905 – UPDATE: Information on Trade Remedy Questions and Resources (govdelivery.com).


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Joe Dubecky