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Section 301 Trade Remedies Frequently Asked Questions

General 301 Frequently Asked Questions

Are products of Hong Kong subject to the additional Section 301 duties?

At this time, the additional duties imposed by the Section 301 remedy only apply to articles that are products of the People’s Republic of China (ISO Country Code CN). Imported goods that are legitimately the product of Hong Kong (HK) or Macau (MO) are not subject to the additional Section 301 duties.
 
Please note that Section 301 duties are based on country of origin, not country of export.

Are Section 301 duties eligible for drawback?

As noted in CSMS Message 18-000419, Section 301 duties are eligible for duty drawback.

How are goods subject to the Section 301 duties treated when they are admitted into a foreign trade zone (FTZ)?

Per the Federal Register notices published by the USTR, any product listed in the Federal Register notices, except any product that is eligible for admission under ‘domestic status’ as defined in 19 CFR 146.43, which is subject to the additional duty imposed by these determinations, and that is admitted into a U.S. foreign trade zone on or after 12:01 am eastern daylight time on July 6, 2018, (for products on the June 20 list), August 23, 2018 (for products on the August 16 list), or September 24, 2018 (for products on the September 21 list) only may be admitted as ‘privileged foreign status’ as defined in 19 CFR 146.41. Such products will be subject upon entry for consumption to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading.

At this time, products covered by the Section 301 remedy that were admitted as “privileged foreign status” prior to the relevant effective date, will not be subject to the additional duties; products admitted on or after the relevant effective date, may only be admitted as “privileged foreign status,” unless eligible for admission under “domestic status.”

Are products entered under the Section 321 de minimis exemption subject to Section 301 duties?

No, goods properly entered under Section 321 are not subject to Section 301 duties.  
 
Please note that a formal entry is required if a shipment contains merchandise subject to AD/CVD. Goods subject to AD/CVD do not qualify for Section 321.

How does one request a product exclusion from the Section 301 duties?

The USTR has issued a Federal Register Notice outlining the process by which U.S. stakeholders may request that particular products classified within an HTSUS subheading currently subject to the Section 301 remedy be excluded from the additional Section 301 duties.  The procedures to request a product exclusion can be found in Section B of the USTR’s Federal Register Notice (83 FR 32181). 
A copy of the Federal Register Notice is available at the following link:  https://ustr.gov/sites/default/files/enforcement/301Investigations/FRN%20exclusion%20process.pdf.

Are products of China subject to 301 trade remedies if they transit through multiple countries before being imported into the United States eligible for the 10 percent duty rate?

Products of China subject to the 301 trade remedies that are exported from China prior to May 10, 2019, may transit through third countries before being imported into the United States.  Such goods will qualify for the 10 percent duty rate so long as the goods are entered, or withdrawn from warehouse, for consumption prior to June 15, 2019.   

Are products of China that are imported into a third country before being imported into the United States eligible for the 10 percent duty rate?

Products of China subject to the 301 trade remedies that are exported from China and imported into a third country, such as Mexico, prior to its importation into the United States are not eligible for the 10 percent duty rate.  Such products are not exported from China and imported directly into the United States.

Are products of China that are previously imported into the United States eligible for the 10 percent duty rate if the goods are exported to a third country and reimported to the United States?

Products of China that were previously imported into the United States may become subject to 301 trade remedies because of a subsequent exportation to a third country, such as Mexico, and reimported into the United States.  Such goods would not qualify for the 10 percent duty rate because they are not exported from China and imported directly into the United States.  We note that products of China may not be subject to 301 trade remedies if they qualify for entry under certain Chapter 98 provisions of the Harmonized Tariff Schedule of the United States.

301 Bond Frequently Asked Questions

What is the timing of duty calculations on immediate transportation in bond entries subject to Section 301?

Pursuant to the Federal Register Notice published by the USTR (Federal Register 83 FR 28710), duties are due on goods that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am EST on July 6, 2018.
 
For such entries covered by an entry for immediate transportation, and with a country of origin of China, and a Harmonized Tariff Schedule (HTS) classification covered by Annex A to the FRN, such entries shall be subject to the duty rates in effect when the immediate transportation entry was accepted at the port of original importation, pursuant to 19 CFR 141.69(b), which states:
 
Merchandise which is not subject to a quantitative or tariff-rate quota and which is covered by an entry for immediate transportation made at the port of original importation, if entered for consumption at the port designated by the consignee or his agent in such transportation entry without having been taken into custody by the port director for general order under section 490, Tariff Act of 1930, as amended (19 U.S.C. 1490), shall be subject to the rates in effect when the immediate transportation entry was accepted at the port of original importation.

Are Temporary Importation Bonds (TIB) allowable for Section 301?

Yes, TIBs are allowed for Section 301 merchandise. Please note that any bond posted must be sufficient to cover all relevant duties, taxes, etc., including Section 301 duties.

301 Harmonized Tariff Schedule Frequently Asked Questions

How are the Section 301 duties assessed in respect to sets packaged for retail sale, which contain components covered by the Section 301 remedy?

When importing goods put up in sets for retail sale (in accordance with General Rule of Interpretation 3) that contain articles subject to the Section 301 remedy, if the product that imparts the essential character to the set (i.e. the HTSUS provision under which the entire set is classified) is covered by the Section 301 remedy, then the entire set will be subject to the additional 25% duties.
 
If the HTSUS provision under which the entire set is classified is not covered by the Section 301 remedies, but the set contains components that are classified in a subheading covered by the 301 list, the 301 duties will not be assessed on the individual components.
 
If the essential component of an article set (X line) is subject to a trade remedy, the applicable chapter 99 number should be reported on the X line with appropriate duty reported.  If the article set V line is subject to a trade remedy, the applicable chapter 99 number should still be reported on the V-line, with duty reported as zero.

Are Section 301 duties owed on entries in which a claim under Chapter 98 is made?

The USTR’s August 16, 2018 notice of action has provided updated instructions in respect to the use of Chapter 98 provisions for all merchandise on the June 20, 2018 and August 16, 2018 lists covered by the Section 301 remedy.

The additional duties imposed by headings 9903.88.01 and 9903.88.02 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80.  For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.    

The provisions related to goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80 are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Daylight Time on August 23, 2018.

Chapter 98 Filing Instructions

When submitting an entry in which a heading or subheading in Chapter 98 is claimed on merchandise covered by the Section 301 remedy, the following instructions will apply.

When submitting an entry using a Chapter 98 provision that normally requires the reporting of a secondary Chapter 1-97 HTSUS classification, a filer must first report the applicable chapter 98 provision, then subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04, as applicable, followed by the applicable Chapter 1-97 HTSUS classification for the commodity being imported.

When submitting an entry using a Chapter 98 provision that does not normally require the reporting of a secondary Chapter 1-97 HTSUS classification, neither 9903.88.01/02/03/04 nor the Chapter 1-97 HTSUS should be reported.

How do we properly report embroidered goods subject to Section 301?

For embroidered goods where both fabric and embroidery HTS numbers on the same line are subject to Section 301 duties, the applicable chapter 99 HTS number should only be reported one time for the given line.

Last modified: 
Thursday, August 22, 2019 - 14:35
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