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CBP guidance: Product exclusions from 25% duty, imports from China

Product exclusions from 25% duty, imports from China

U.S. Customs and Border Protection (CBP) issued a release concerning products excluded from the 25% customs duty imposed on imports from China.

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The CBP guidance comes after the May 14, 2019 notice issued by the Office of the U.S. Trade Representative (USTR) announcing the decision to grant the fourth round of certain exclusion requests from the 25% customs duty assessed under the Section 301 investigation related to goods from China (Tranche 1).

According to the CBP release—CSMS #19-000244—the product exclusions will apply as of a July 6, 2018 effective date and will extend for one year after the publication of the CBP notice (dated May 14, 2019).

  • The exclusions are available for any product that satisfies the description in an annex to the USTR notice, regardless of whether the importer filed an exclusion request.
  • The scope of each exclusion is governed by the scope of the 10-digit headings and product descriptions in the Annex, and not by the product descriptions set out in any particular request for exclusion.
  • The functionality for the acceptance of the third round of products excluded from Section 301 duties is available in the Automated Commercial Environment (ACE) as of May 14, 2019.

The CBP release provides instructions for filing entries for products granted exclusions by the USTR from the 25% customs duty under the Section 301 action. For instance, importers are directed to report the regular Chapters 84, 85, and 90 classification of the Harmonized Tariff Schedule of the United States (HTSUS) for the imported merchandise, and also to report “…the HTSUS classification 9903.88.08 (Articles the product of China, as provided for in U.S. note 20(k) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative) for imported merchandise subject to the exclusion.”

 

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Managing Director
T: 202-533-3247
E: aahanchian@kpmg.com

Robert Waldrop
Principal
T: 212-954-8117
E: rwaldrop@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

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