Trade Remedies

On January 23, 2018, the President issued Presidential Proclamation 9693 and Presidential Proclamation 9694 imposing tariff rate quotas and increased duties on imports of solar cells and panels, and washing machines and parts, effective February 7, 2018. 

This action was taken after the respective U.S industries filed petitions under Section 201 of the Trade Act of 1974 with the U.S. International Trade Commission (ITC), and the ITC found that these U.S. industries were injured by imported goods.  These measures have a duration of four years for solar cells and panels, and three years for washing machines and parts.  These measures cover imports from all countries, except certain developing countries.  Canada is also excluded from the washing machines/parts measures.

83 FR 3541   83 FR 3553

The safeguard measures include tariff rate quotas.  A tariff rate quota permits a specified quantity of merchandise to be imported at a reduced duty rate during a specified period.  For example, the tariff rate quota on solar cells allow importations of a specified quantity of solar cells at no additional duty.   After this specified quantity of solar cells is imported, an additional duty is imposed on the over quota imports.

There are four separate safeguard measures:

• A tariff rate quota on solar cells;
• Increased duties on solar panels;
• A tariff rate quota on washing machines;
• A tariff rate quota on washing machine parts.

The President has the authority to modify the safeguard measures, for example, by widening the coverage to any of the excluded countries.  USTR also may exempt additional products from the measures.

Existing ACE functionality will be used to process the imports subject to the Section 201 tariff rate quotas and tariffs.  For the tariff rate quotas, CBP’s ACE quota module will automatically tabulate the total reported quantities of products subject to quotas, and require the in-quota or out-of-quota tariff rates based on the quota limits.

Quota Enforcement and Administration

Commodity Status Reports

On May 19, 2019, the President issued two Proclamations adjusting Proclamations 9704 and 9705 after the United States announced an agreement with Canada and Mexico to remove the Section 232 tariffs for steel and aluminum imports from those countries.

All imports of steel articles covered by Heading 9903.80.01, in subchapter III of Chapter 99 of the HTSUS, shall be subject to an additional 25 percent ad valorem rate of duty with respect to goods entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on May 21, 2019, from all countries (including Turkey) except Argentina, Australia, Brazil, Canada, Mexico and South Korea.

Commodity

Countries Covered by Section 232 Import Duties

Please note that the Section 232 measures are based on the country of origin, not the country of export.

Steel

As of May 20, 2019:  All countries of origin except Argentina, Australia, Brazil, Canada, Mexico and South Korea

Aluminum

As of May 20, 2019:  All countries of origin except Argentina, Australia, Canada and Mexico.

Countries Covered by Section 232 Absolute Quotas

Steel

As of June 1, 2018:  Argentina, Brazil, and South Korea.

Aluminum

As of June 1, 2018:  Argentina.

For both steel and aluminum, imports of United States origin are not covered by the Section 232 measures.

Filing Instructions

Section 232 Import Duties

Use non-quota entry type codes.

UPDATE:  As of June 1, 2018, for all imports of aluminum from South Korea, importers should also use non-quota entry type codes.

Steel Products

In addition to reporting the regular Chapters 72 and 73 of the Harmonized Tariff Schedule (HTS) classification for the imported merchandise, importers shall report the following HTS classification for imported merchandise subject to the additional duty:  9903.80.01 (25 percent ad valorem additional duty for steel mill products).

Steel articles covered by the Section 232 remedy that are the product of the Republic of Turkey (Turkey) were subject to 50% ad valorem duty rate from August 13, 2018, through May 20, 2019, under HTSUS 9903.80.02.  

Steel Products from Turkey

In addition to reporting the regular Chapter 72 of the Harmonized Tariff Schedule of the United States (HTSUS) classification for the imported merchandise, importers shall report the following HTSUS classification for imported merchandise subject to the additional duty:

• Goods entered for consumption, or withdrawn from warehouse for consumption before 12:01 a.m. eastern daylight time on May 21, 2019, shall be filed using the 9903.80.02 special provision for 50% ad valorem duty rate for products of iron and steel from Turkey.

• Goods entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on May 21, 2019, shall be filed using the 9903.80.01 special provision for 25% ad valorem duty rate for products of iron and steel from all countries (including Turkey) except Argentina, Australia, Brazil, Canada, Mexico and South Korea.

Aluminum Products

In addition to reporting the regular Chapter 76 of the HTS classification for the imported merchandise, importers shall report the following HTS classification for imported merchandise subject to the additional duty:

9903.85.01 (10 percent ad valorem additional duty for aluminum products)

Section 232 Absolute Quota

Use quota entry type codes (entry types 02, 06, 07, 12, 23, 32, 38, or 52).

For further guidance, see CBP quota bulletins.

Generalized System of Preferences (GSP) and African Growth and Opportunity Act (AGOA) 

GSP and AGOA-eligible goods that are subject to Section 232 duties or quotas may not receive GSP or AGOA duty preference in accordance with 19 USC 2463(b)(2).

On imports subject to Section 232 duties or quotas (including imports from Argentina and Brazil), in addition to any applicable Section 232 duties, importers should pay the normal trade relations (column 1) duty rates and not submit the GSP Special Program Indicator (SPI) “A” or the AGOA SPI “D”.

Other Trade Preference Programs and Free Trade Agreements

Trade preference may be claimed for all preference programs with the exception of GSP and AGOA, as stated above. Importers making a trade preference claim under a program other than GSP or AGOA may continue to receive the preferential duty rate and any MPF exemption that may apply in accordance with 19 CFR 24.23(c). Section 232 duties must be paid on imports subject to Section 232 even if trade preferences apply.

Chapter 98

Imports subject to Section 232 duties imported under subheading 9802.00.60 shall be assessed Section 232 duties based upon the full value of the imported article.

Imports of U.S. origin are not subject to Section 232 duties.

Foreign Trade Zones

Any steel articles imported from Turkey that were admitted into a United States foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on May 21, 2019, shall be subject upon entry for consumption on or after such time and date to the additional 25 percent additional ad valorem rate of duty in heading 9903.80.01 in subchapter III of chapter 99 of the HTSUS.

Any steel or aluminum article, except those eligible for admission under “domestic status” as defined in 19 CFR 146.43, subject to the Section 232 duties, that is admitted into U.S. foreign trade zones on or after 12:01 a.m. eastern daylight time on March 23, 2018, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable Harmonized Tariff Schedule (HTS) subheading.

Any steel or aluminum article, except those eligible for admission under “domestic status” as defined in 19 CFR 146.43, subject to the 232 duties, that was admitted into U.S. foreign trade zones under "privileged foreign status" as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on March 23, 2018, will likewise be subject upon entry for consumption to any ad valorem rates of duty related to the classification under applicable Harmonized Tariff Schedule (HTS) subheadings imposed by the Proclamations.

Aluminum or steel articles shall not be subject upon entry for consumption to Section 232 duties, merely by reason of manufacture in a U.S. foreign trade zone. However, articles admitted to a U.S. foreign trade zone in “privileged foreign status,” shall retain that status consistent with 19 CFR 146.41(e).

The merchandise covered by the additional duties and quota may also be subject to antidumping and countervailing duties.

Drawback

No drawback shall be available with respect to the Section 232 duties imposed on any aluminum or steel article.

On January 29, 2020, the President issued Proclamation 9980 on Adjusting Imports of Derivative Aluminum Articles and Derivative Steel Articles into the United States under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), providing for additional import duties for derivative Aluminum and Steel Articles of the Trade Expansion Act of 1962. See the Federal Register (FR), 85 FR 5281, January 29, 2019.

COMMODITY:
Derivative Aluminum and Steel articles, as specified per Presidential proclamation 9980 and 85 FR 5281 (see below).

COUNTRIES COVERED:
Derivative Aluminum Articles: All countries of origin except Argentina, Australia, Canada, and Mexico.

Derivative Iron or Steel Articles: All countries of origin except Argentina, Australia, Brazil, Canada, Mexico, and South Korea.

Please note this is based on the country of origin, not the country of export.

GUIDANCE:
Per 85 FR 5281, issued January 29, 2020, the additional duties on imports of Derivative Aluminum and Steel Articles are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on February 8, 2020.

Derivative Aluminum Products:
Importers shall report the following HTS classification for imported merchandise subject to the additional duty: 9903.85.03 (10 percent ad valorem additional duty for derivative of aluminum products). In addition to reporting the regular Chapter 76 of the HTS classification for the imported derivative merchandise, for aluminum stampings, new HTS classifications 8708.10.30.30 and 8708.29.21.30 will be effective on February 8, 2020.

Heading 9903.85.03 shall apply to the following derivative aluminum products:

(A) stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and with steel core, not electrically insulated; the foregoing fitted with fittings or made up into articles (described in subheading 7614.10.50);

(B) stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing comprising electrical conductors, not fitted with fittings or made up into articles (described in subheading 7614.90.20);

(C) stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing not comprising electrical conductors, not fitted with fittings or made up into articles (described in subheading 7614.90.40);

(D) stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing fitted with fittings or made up into articles (described in subheading 7614.90.50);

(E) bumper stampings of aluminum, the foregoing comprising parts and accessories of the motor vehicles of headings 8701 to 8705 (described in subheading 8708.10.30); and

(F) body stampings of aluminum, for tractors suitable for agricultural use (described in subheading 8708.29.21).

Derivative Iron or Steel Products:
Importers shall report the following HTS classification for imported merchandise subject to the additional duty: 9903.80.03 (25 percent ad valorem additional duty on derivative for iron/steel products). In addition to reporting the regular Chapter 73 of the HTS classification for the imported derivative merchandise, for steel stampings, the new HTS classification 8708.10.30.20 and 8708.29.21.20 will be effective on February 8, 2020.

Heading 9903.80.03 shall apply to the following derivative iron or steel products:

(A) nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material (excluding such articles with heads of copper), suitable for use in powder-actuated hand tools, threaded (described in subheading 7317.00.30); and

(B) nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material (excluding such articles with heads of copper), of one piece construction, whether or not made of round wire; the foregoing described in statistical reporting numbers 7317.00.5503, 7317.00.5505, 7317.00.5507, 7317.00.5560, 7317.00.5580 or 7317.00.6560 only and not in other statistical reporting numbers of subheadings 7317.00.55 and 7317.00.65;

(C) bumper stampings of steel, the foregoing comprising parts and accessories of the motor vehicles of headings 8701 to 8705 (described in subheading 8708.10.30); and

(D) body stampings of steel, for tractors suitable for agricultural use (described in subheading 8708.29.21).

Goods for which entry is claimed under a provision of chapter 98 and which are subject to the additional duties prescribed herein shall be eligible for and subject to the terms of such provision and applicable CBP regulations, except that duties under subheading 9802.00.60 shall be assessed based upon the full value of the imported article. In particular, please note that if body stampings of aluminum or steel, for tractors suitable for agricultural use qualify under 9817.00.50/.60, the imports are still subject to the additional 232 duties.

No claim for entry or for any duty exemption or reduction shall be allowed for the derivative aluminum or iron/steel products enumerated in this subdivision under a provision of chapter 99 that may set forth a lower rate of duty or provide duty-free treatment, taking into account information supplied by CBP, but any additional duty prescribed in any provision of this subchapter or subchapter IV of chapter 99 shall be imposed in addition to the duty in heading 9903.85.03 for aluminum and 9903.80.03 for steel.

Any derivative article described in the proclamation, except those eligible for admission under “domestic status” as defined in 19 CFR 146.43, that is subject to the duty imposed by clause 1 of the proclamation, and that was admitted into a U.S. foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern standard time on February 8, 2020, will likewise be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable HTSUS subheading added by this proclamation.

Derivative articles shall not be subject upon entry for consumption to the duty established in this proclamation merely by reason of manufacture in a U.S. foreign trade zone. However, derivative articles admitted into a U.S. foreign trade zone in “privileged foreign status” of this proclamation shall retain that status consistent with 19 CFR 146.41(e).

No drawback shall be available with respect to the Section 232 duties imposed on any aluminum or steel article.

GSP and AGOA-eligible goods that are subject to Section 232 duties or quotas may not receive GSP or AGOA duty preference in accordance with 19 USC 2463(b)(2).

Trade preference may be claimed for all preference programs with the exception of GSP and AGOA, as stated above. Importers making a trade preference claim under a program other than GSP or AGOA may continue to receive the preferential duty rate and any MPF exemption that may apply in accordance with 19 CFR 24.23(c). Section 232 duties must be paid on imports subject to Section 232 even if trade preferences apply.

The merchandise covered by the additional duties may also be subject to antidumping and countervailing duties.

Imports of U.S. origin are not subject to Section 232 duties.

CBP will issue additional guidance on entry requirements for any products excluded from these measures, as soon as information is available. CBP will also issue updated guidance if there are any changes to these measures, including any changes to exempted countries and any new requirements, such as quota requirements.

IMMEDIATE TRANSPORTATION SHIPMENTS

Under 19 CFR 141.69(b), 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.
For such entries covered by an entry for immediate transportation, and with a country of origin and Harmonized Tariff Schedule classification subject to the Presidential Proclamations, such entries shall be subject to the duty rates in effect when the immediate transportation entry was accepted at the port of original importation.

On August 30, 2019, in accordance with the specific direction of the President, the USTR published their determination to modify the action being taken in the Section 301 investigation by increasing the rate of additional duty from 10 to 15 percent for the products of China covered by the $300 billion tariff action (Tranche 4). 

 84 FR 45821   CSMS 395876

301 Liquidation Extension Request

As the IOR, if you have a pending product exclusion request with USTR and you are concerned that a corresponding entry may liquidate before USTR renders a decision on the exclusion request, you may request an extension of the liquidation deadline, Section 10.3 of the ACE Entry Summary Business Process Document, available at www.cbp.gov/document/guides/ace-entry-summary-business-process. A liquidation may be extended up to three years.

You may request liquidation extensions from the Center of Excellence and Expertise assigned to your import entries. Please contact an Import Specialist at the Center of Excellence and Expertise at www.cbp.gov/trade/centers-excellence-and-expertise-information/cee-directory

Questions related to System Errors and/or Transmission Rejections

The Client Representatives are the first point of contact for the Trade community when it relates to automating your systems for interactions with CBP, system-related problems after automation, and any questions on transmitting data to CBP. 

If you need more information on who the Client Representative for your area is, please reach out to gmb.clientrepoutreach@cbp.dhs.gov

Post Summary Correction

Product exclusions granted by USTR so far are retroactive to July 6, 2018, for unliquidated entries or entries that are liquidated but not final.  Once a product exclusion is granted by USTR, an Importer of Record (IOR) may request an administrative refund by filing a Post Summary Correction (PSC) for unliquidated entries that are covered by the exclusion.  If an entry is liquidated prior to the filling of a PSC, a party may file a protest.

For questions regarding how to fill out and submit a PSC or protest, please contact an Import Specialist at the Center of Excellence and Expertise at www.cbp.gov/trade/centers-excellence-and-expertise-information/cee-directory

Classification Rulings

CBP issues binding advance rulings and other legal decisions in connection with the importation of merchandise into the United States. Advance rulings provide the international trade community with a transparent and efficient means of understanding how CBP will treat a prospective import or carrier transaction. 

For general information regarding Customs’ rulings or to request an electronic binding ruling, please visit www.cbp.gov/trade/rulings.

For guidance concerning classification, you may wish to review binding ruling via CBP’s Customs Ruling Online Search System (CROSS) at https://rulings.cbp.gov/home.

Section 301 Questions

For questions regarding Section 301, please see CBP’s list of Frequently Asked Questions at www.cbp.gov/trade/programs-administration/entry-summary/section-301-trade-remedies/faqs

For questions concerning Section 301 Product Exclusion submissions and the status of those submissions, please visit the following Office of the United States Trade Representative (USTR)’s link: https://ustr.gov/issue-areas/enforcement/section-301-investigations/search

On October 9, 2019, the U.S. Trade Representative (USTR) published 84 FR 54245, a Notice of Determination and Action Pursuant to Section 301: Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute.  The notice announces the U.S. Trade Representative’s determination to impose additional duties on products of the EU or certain member states.  These products are subject to either 10% or 25% additional duties.

 84 FR 54245    CSMS 402819680

Chapter 98 and Chapter 99

Products of Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, or the United Kingdom that are subject to this Section 301 trade remedy and that are eligible for temporary duty exemptions or reductions under HTS Heading 9902 shall be subject to the additional duties imposed by subheadings 9903.89.05 through 9903.89.50.  Any such duty exemption or reduction shall apply only to the chapters 1 through 97 of the HTSUS.

The additional duties imposed by subheadings 9903.89.05 through 9903.89.50 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 subheadings 9802.00.40, 9802.00.50 and 9802.00.60 and heading 9802.00.80.  For subheadings 9802.00.40, 9802.00.50 and 9802.00.60, the additional duties apply to the value of repairs, alterations or processing performed, as described in the applicable subheading, in one or more of the following countries: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, or the United Kingdom. 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.

Chapter 98 and Chapter 99 Filing Instructions

When submitting an entry summary in which a heading or subheading in Chapter 98 and/or 99 is claimed on imported merchandise, the following instructions will apply for the order of reporting the HTS on an entry summary line.

HTS Sequence:

1. Chapter 98 (if applicable)
2. Chapter 99 number(s) for additional duties (if applicable),
3. For trade remedies:

• First report the Chapter 99 HTS for Section 301 Goods of China OR Chapter 99 HTS for 301 Goods of Certain EU Countries (Large Civil Aircraft) (if applicable),
• Followed by the Chapter 99 HTS for Section 232 or 201 duties (if applicable),
• Followed by the Chapter 99 HTS for Section 201 or 232 quota (if applicable),

1. Chapter 99 number(s) for REPLACEMENT duty or other use (i.e., MTB or other provisions) (if applicable),
2. Chapter 99 number for other quota (not covered by #3) (if applicable),
3. Chapter 1 to 97 Commodity Tariff

Anti-dumping/Countervailing Duty (AD/CVD)

Products of Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden or the United Kingdom that are described in any of subheading 9903.89.05 through 9903.89.50 and classified in one of the subheadings enumerated in such subheadings,  shall continue to be subject to anti-dumping, countervailing, or other duties (including duties imposed by other provisions of subchapter III of this chapter and safeguard duties set forth in provisions of subchapter IV of this chapter), fees, exactions and charges that apply to such products, as well as to the additional imposed herein.

Foreign Trade Zones

Any product listed in Annex A, 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 this determination, and is admitted into a U.S. foreign trade zone on or after 12:01 a.m. eastern daylight time on October 18, 2019, 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.