The purpose of this message is to provide guidance regarding the extension of product exclusions from additional Section 301 China duties on certain medical-care products to address COVID-19.
On November 16, 2021, USTR published 86 FR 63438, extending 81 of the COVID exclusions through May 31, 2022.
On May 27, 2022, USTR posted a Federal Register notice at USTR Extends COVID-19 Exclusions from China Section 301 Tariffs | United States Trade Representative extending 81 COVID exclusions for an additional 6 months, through November 30, 2022.
The exclusions listed are available for any product that meets the description as set out in the Annexes to 86 FR 63438, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the 10-digit HTS headings and product descriptions provided in the Annexes to 86 FR 63438, not by the product descriptions set out in any particular request for exclusion.
The functionality for the acceptance of the extended product exclusions will be available in the Automated Commercial Environment (ACE) as of 7 am eastern standard time, June 2, 2022.
Instructions for importers, brokers, and filers on submitting entries to CBP containing granted exclusions by the USTR from the Section 301 measures are set out below:
Per the Federal Register notice posted at USTR Extends COVID-19 Exclusions from China Section 301 Tariffs | United States Trade Representative, in addition to reporting the regular Chapters 28, 34, 38, 39, 40, 48, 52, 55, 56, 61, 62, 63, 65, 84, 85, and 90 classifications of the HTS for the imported merchandise, importers shall report the HTS classification 9903.88.66 (Articles, the product of China as provided for in U.S. notes 20(sss)(i), 20(sss)(ii), 20(sss)(iii), and 20(sss)(iv) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.66 is submitted.
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 is found in CSMS 42566154.
Specifically, if importers enter Chinese goods on June 1, 2022 subject to the extended exclusions under HTSUS 9903.88.66, and pay Section 301 duties, importers should file Post Summary Corrections on or after June 2, 2022 to obtain a refund of duties paid.
In situations where an importer has requested a product exclusion and the request is pending with the USTR, importers or their licensed representative may submit a request to extend the liquidation of impacted unliquidated entry summaries to CBP.
Reminder: importers, brokers, and/or filers should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS 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.