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CBP instructions, exclusions of imports from China under Section 301

CBP instructions, exclusions of imports from China

U.S. Customs and Border Protection (CBP) today issued a release providing instructions for importers submitting entries to CBP with regard to products granted exclusions by the U.S. Trade Representative from the Section 301 measures.

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Related content

The U.S. Trade Representative (USTR) this week announced a decision to grant a third round of certain exclusion requests from the 25% customs duty assessed under the Section 301 investigation related to goods from China (Tranche 1). The product exclusions announced this week will apply for one year after April 18, 2019 (the date of publication of the USTR notice). Read TradeNewsFlash

According to today’s CBP release—CSMS #19-000212—importers will, in addition to reporting the regular Chapters 84, 85 and 90 classification of the Harmonized Tariff Schedule of the United States (HTSUS) for the imported merchandise, also report the HTSUS classification 9903.88.07 (Articles the product of China, as provided for in U.S. note 20(j) to this subchapter, each covered by an exclusion granted by the USTR) for imported merchandise subject to the exclusion. Importers are directed not to submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.07 is submitted.

Customs duty refunds

Duty exclusions granted by USTR are retroactive on imports to the initial effective date of July 6, 2018. To request an administrative refund for previous imports of duty-excluded products granted by USTR, importers may follow the same entry filing instructions (that is, those described in today’s release) in filing a post-summary correction (PSC) on unliquidated entry summaries. If an entry summary liquidates prior to the filling of a PSC, importers may file a protest.

Imports that have been granted a product exclusion from the Section 301 measures, and that are not subject to the Section 301 duties, are not covered by the foreign trade zone (FTZ) provisions of the Section 301 notices, but instead are subject to the FTZ provisions in 19 CFR part 146.

 

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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