Section 301 Trade Remedies Frequently Asked Questions
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.”
What is the timing of duty calculations on immediate transportation in bond entries subject to 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.
How are the Section 301 duties assessed in respect to sets packaged for retail sale, which contain components covered by the Section 301 remedy?
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.
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.