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.
When importing goods in sets in accordance with General Rule of Interpretation 1, please refer to CSMS 40564257 for guidance.
The additional duties imposed by headings 9903.88.01, 9903.88.02, 9903.88.03, 9903.88.04, 9903.88.09 and 9903.88.15 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under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80 are effective with respect to goods entered, or withdrawn from warehouse for consumption.
Chapter 98 Filing Instructions
For Chapter 98 filing instructions, see CSMS# 39587858.
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.