September 27, 2019 - Additional Products Excluded from Section 301 Duties (Tranche 1 & 2)

October 1, 2019

On September 27, 2019, the USTR granted additional exclusions from Section 301 duties for Chinese-origin products that are identified in Section 301 Lists 1 and 2.

September 27th Exclusions for List 1

92 additional product exclusions were granted on Sept 27th for items identified on List 1 ($34 Billion). Importers, brokers and filers are instructed to use HTS 9903.88.19 when making entry of these excluded products. Some of the excluded items include gas treatment process modules, wheels, wood-working and glass-working machinery, DC and AC motors. (See our worksheet.)                          

September 27th Exclusions for List 2

111 additional product exclusions were granted on Sept 27th for items identified on List 2 ($16 Billion). For these exclusions, importers, brokers and filers are instructed to use HTS 9903.88.20 when making entry of these excluded products. Some of the excluded items include: tapes, gate posts, DC motors, surge protectors, and multimeters.

For a complete list of the 203 items and the applicable HTS numbers, click here.

Claiming Refunds, Liquidation of Entries & Filing Extensions of Liquidation

List 1 exclusions were effective September 27, 2019 and are retroactive to July 6, 2018, the date the $34 billion list took effect. List 2 exclusions were effective September 27, 2019 and are retroactive to August 23, 2018. Each exclusion is valid for one year after the publication of the notice in the Federal Register.

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.

Because entries of goods on List 1 and 2 now subject to exemptions are currently being liquidated, it is imperative that importers and brokers immediately file requests with CBP to extend the liquidation of entries of the goods under 19 CFR 1§ 59.12, so as to preserve the ability to file PSCs.

If the entry has been liquidated, it is too late to extend the liquidation, and importers and brokers will have to file protests to receive refunds for those HTS numbers granted exclusions. The protest filing time period is 180 days from the date of liquidation.

In some extreme cases, the time period to file protests has started to run for goods liquidated in June, July, August and September of 2019.

Items on Lists 1, 2 and 3 are currently subject to a duty rate of 25% ad valorem, which is anticipated to increase to 30% ad valorem on October 15, 2019. The rate was originally set to increase on October 1, 2019 (84 FR 46213 of September 3, 2019).

On September 11, 2019 President Trump tweeted that United States have agreed to delay increasing tariffs on $250 billion worth of Chinese imports from Oct. 1 to Oct. 15, out of respect for the People’s Republic of China’s 70th Anniversary and “as a gesture of good will.”

The USTR has indicated that it will continue to issue exclusions on a periodic basis. To protect a future right to claim a refund, importers are advised to file a request to extend the liquidation of all entries of goods under 19 CFR 1§ 59.12, for which exemptions requests have been sought and are still pending or approved.

It is anticipated that an exclusion process will be available for HTS items on List 4A, which went into effect on September 1, 2019. If your business would like more information on filing an exclusion or is interested in filing an exclusion for products on List 4A, please contact our office.

For further information or questions about this or other customs issues, contact George R. Tuttle, III at geo@tuttlelaw.com or at (415) 986-8780.

 

George R. Tuttle, III is an attorney with the Law Offices of George R. Tuttle.

The information in this article is general in nature and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

Copyright © 2019 by Tuttle Law Offices. 
All rights reserved. 

Information has been obtained from sources believed to be reliable.  However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.

 

 

 

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