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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 Notice published by the USTR, any product covered by the Section 301 remedy (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 and that is admitted into a U.S. foreign trade zone on or after 12:01 am EST on July 6, 2018, 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 July 6, 2018, will not be subject to the additional duties; products admitted on or after July 6, 2018, 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.
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.

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 subheading 9903.88.01 or 9303.88.02, as applicable, followed by the applicable Chapter 98 subheading, and the 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 nor the Chapter 1-97 HTSUS should be reported.

When submitting an entry for a Temporary Importation under Bond (TIB), a filer must first report the applicable subheading in Chapter 98 (i.e., in heading 9813), followed by subheading 9903.88.01/02, and the Chapter 1-97 HTSUS for the commodity being imported.

FOR FURTHER INFORMATION

For further information, please refer to the USTR’s Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 FR 28710 (June 20, 2018); and the August 16, 2018 Notice of Action Pursuant to Section 301, 83 FR 40823 (August 16, 2018).
 
Questions related to Section 301 entry filing requirements should be emailed to traderemedy@cbp.dhs.gov. Questions from the importing community concerning ACE rejections should be referred to their Client Representative.
Last modified: 
Wednesday, August 22, 2018 - 16:13
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