Import

HTSUS Chapter 44 Changes; Subject to Section 301 Tariffs

Information Derived from U.S. Customs Cargo Systems Messaging Service
9/28/2018

Background

On August 18, 2017, the Office of the United States Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 into the government of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. On June 20, 2018, the USTR published a Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301, imposing additional import duties on a list of Chinese products. See Federal Register 83 FR 28710 (June 20, 2018). On August 16, 2018, the USTR published a Notice of Action providing for the imposition of additional import duties on a second list of Chinese Products. See Federal Register 83 FR 40823 (August 16, 2018).

Announcement

On September 21, 2018, the USTR published a Notice of Modification of Action providing for the imposition of additional import duties on a third list of Chinese products. See Federal Register Notice 83 FR 47974 (September 21, 2018). On September 28, 2018, the USTR published a Notice of Amendment of Action announcing:

• a technical modification to the tariff classification of the goods covered by the September 21, 2018 list of products as a result of changes to the Harmonized Tariff System nomenclature for Chapter 44 that will take effect on October 1, 2018; and

• the removal of two subheadings from the imports covered by the Section 301 duties. See Federal Register Notice 83 FR 49153 (September 28, 2018).

Guidance:

New Subheadings in Chapter 44, HTSUS

Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on October 1, 2018, U.S. Note 20(f) to Subchapter III of Chapter 99 will be modified by deleting 14 eight-digit HTSUS subheadings of Chapter 44, and adding 38 new corresponding eight digit HTSUS subheadings of Chapter 44. These modifications are due to changes in the Harmonized Tariff System nomenclature for Chapter 44.

The subheadings that will be deleted are: 4401.10.00, 4401.39.40, 4403.10.00, 4403.20.00, 4403.92.00, 4403.99.00, 4406.10.00, 4406.90.00, 4407.10.01, 4407.99.01, 4412.32.06, 4412.32.26, 4412.32.32, and 4412.32.57.

The subheadings that will be added are: 4401.11.00, 4401.12.00, 4401.39.41, 4401.40.00, 4403.11.00, 4403.12.00, 4403.21.00, 4403.22.00, 4403.23.00, 4403.24.00, 4403.25.00, 4403.26.00, 4403.93.00, 4403.94.00, 4403.95.00, 4403.96.00, 4403.97.00, 4403.98.00, 4403.99.01, 4406.11.00, 4406.12.00, 4406.91.00, 4406.92.00, 4407.11.00, 4407.12.00, 4407.19.05, 4407.19.06, 4407.19.10, 4407.96.00, 4407.97.00, 4407.99.02, 4412.33.06, 4412.33.26, 4412.33.32, 4412.33.57, 4412.34.26, 4412.34.32, and 4412.34.57.

 

Removal of Subheadings in Chapter 3, HTSUS

Per Section C of the Annex to the September 28, 2018 Notice of Modification of Action, effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on September 24, 2018, U.S. Note 20(f) to Subchapter III of Chapter 99 will be modified by deleting two eight digit HTSUS subheadings of Chapter 3.

The subheadings that will be deleted are: 0304.81.10 and 0304.81.50.

The removal of the two subheadings in Chapter 3 from the Section 301 remedy is retroactive to September 24, 2018. Consequently, any importer of goods classified in subheadings 0304.81.10 or 0304.84.50 in which Section 301 duties were assessed on or after that date can request a refund of the additional duties. Importers may file a post summary correction to request a refund of Section 301 duties assessed on goods classified in subheadings 0304.81.10 or 0304.84.50,

 

Reminder on Foreign Trade Zone Procedures

As indicated in the USTR’s September 21, 2018 Notice of Modification of Action, 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 that is admitted into a U.S. foreign trade zone on or after 12:01 A.M. eastern daylight time on September 24, 2018, 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.

 

Reminder on Immediate Transportation In Bond Entries

Pursuant to the September 21, 2018 Notice of Modification of Action, duties are due on goods that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on September 24, 2018.

For such entries covered by an entry for immediate transportation, and with a country of origin of China, and an HTSUS classification covered by Annex A to the September 21 notice (as amended), such entries shall be subject to the duty rates in effect when the immediate transportation entry was accepted at the port of original importation, pursuant to 19 CFR 141.69(b), which states:

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 Further Information

For further information, please refer to the USTR’s Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 FR 28710 (June 20, 2018); the August 16, 2018 Notice of Action Pursuant to Section 301, 83 FR 40823 (August 16, 2018); the September 21, 2018 Notice of Modification of Action Pursuant to Section 301, 83 FR 47974; and the September 28, 2018 Notice of Amendment of Action, 83 FR 49153 (September 28, 2018).

Questions related to Section 301 entry filing requirements should be emailed to traderemedy@cbp.dhs.gov. Questions from the importing community concerning ACE rejections should be referred to their Client Representative.

 

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