Update: CBP Publishes Guidance on China Section 301 Exclusion Lists
January 11, 2021
Dear Valued Customer:
On December 29, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 8583, modifying the Section 301 China action and extending product exclusions previously covered by multiple tranches and FR Notices. In light of the rising spread and ongoing efforts to combat COVID-19, the USTR has determined that maintaining or re-imposing additional duties on certain medical care products subject to the Section 301 action is no longer appropriate, and that the application of additional duties to these products could impact U.S. preparedness to address COVID-19.
The modifications to exclude additional products announced in 85 FR 85831 will apply as of January 1, 2021 until March 31, 2021. Certain product exclusions that were initially set to expire on December 31, 2020 will be extended through March 31, 2021. Also, one exclusion under HTS 9027.90.5650 and 9903.88.06, which was originally set to expire on March 25, 2021, was deleted and replaced with an exclusion that will expire on March 31, 2021.
U.S. Customs and Border Protection (CBP) provided an update and deployed functionality within the Automated Commercial Environment (ACE) to activate the latest exclusions provided for under 9903.88.62 (List 1), 9903.88.63 (List 2), 9903.88.64 (List 3) & 9903.88.65 (List 4A). The technical adjustments and effective dates for China Section 301 tariffs granting exclusions/extensions are currently active and retroactive to the effective date notated in each Federal Register Notice.
Per the USTR Federal Register notices (FRN), the product exclusions are available for any product that meets the description in the annex to Federal Register notice, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the 10-digit headingsandproduct descriptions in the annex, and not by the product descriptions set out in any particular request for exclusion. The USTR publishes a notice in the Federal Register covering each round of exclusions. Within each FRN, the USTR provides a scope of the excluded products, referenced in the annex section of each publication (noted in the chart below).
Please note in the above chart the next exclusion lists are set to expire on March 31, 2021 and April 18, 2021.
EMO Trans has made every attempt to ensure accurate data is available for reference. However, we recommend you refer to the original Federal Register notices for official information.
Customs requires the Importer of Record to provide reasonable care in valuation, classification and merchandise description when offering products for import into the U.S. commerce. With the complexity of the scope of the exclusion, EMO Trans must also provide guidance and reasonable care when preparing and submitting information to Customs.
To provide the highest level of compliance to our customers, EMO Trans requests documentation be provided to substantiate the claim of the exemption is appropriate per the scope ruling's product description and classification requirements.
Importers with Entries Covered by Granted Product Exclusion Requests: Product exclusions granted by USTR so far are retroactive to the respective effective date for unliquidated entries or entries that are liquidated but not final. Once a product exclusion is granted by USTR, an Importer of Record (IOR) may request an administrative refund by filing a Post Summary Correction (PSC) for unliquidated entries that are covered by the exclusion. If an entry is liquidated prior to the filling of a PSC, a party may file a protest.
PSC may be filed 300 days after release or 15 days prior to liquidation (whichever occurs first).
Protests may be filed up to 180 days after liquidation.
Entries Covered by Pending Product Exclusion Requests:
As the IOR, if you have a pending product exclusion request with USTR, or are importing a product that is covered by such a pending exclusion request, and you are concerned that a corresponding entry may liquidate before USTR renders a decision on the exclusion request, you can:
Request an extension of the liquidation deadline and file a PSC no later than 15 days before the extended date of liquidation; and/or
File a protest within the 180-day period following liquidation. When filing a protest, the protestant should identify the pending product exclusion decision from USTR as a basis for the protest. Upon receiving USTR’s decision on the product exclusion, the protestant should submit the exclusion information to CBP as additional information pursuant to 19 C.F.R. 174.28.
If a protest is filed, CBP will postpone making a determination on protests that include a claim identifying a pending product exclusion. Once USTR completes the exclusion processing, CBP will process these protests pursuant to USTR’s exclusion determination. That is, CBP will refrain from denying or granting a party’s protest before the importer receives a final determination from USTR regarding its product exclusion request.
For additional questions or support please contact your local EMO Trans office, as EMO Trans has a network of Licensed Customs Brokerage specialists available to assist with accomplishing your compliance goals.
Best regards,
Matthew Kmet
Corporate Customs Compliance Manager Matthew.Kmet@emotrans.com 678-553-7732
