Customs Corner
Trade and Customs Updates
Customs and Border Protection Issues Guidance for Section 301
Customs and Border Protection (CBP) has provided guidance in CSMS 57959304 on amendments for two previously reinstated China 301 exclusions. The amendments are the result of changes to the Harmonized Tariff that became effective July 1, 2023.
Per the CSMS:
Instructions for importers, customs brokers, and filers on submitting entries to U.S. Customs and Border Protection (CBP) containing Section 301 duties and exclusions related to these amendments are available here:
- Note 20(ttt)(iii)(73) to subchapter III of chapter 99 of the HTSUS is amended by deleting “(described in statistical reporting number 6802.99.0060) and by inserting “(described in statistical reporting number 6802.99.0060 prior to July 1, 2023; described in statistical reporting number 6802.99.0090 effective July 1, 2023)” in lieu thereof.
- Note 20(ttt)(iii)(74) to subchapter III of chapter 99 of the HTSUS is amended by deleting “(described in statistical reporting number 6802.99.0060) and by inserting “(described in statistical reporting number 6802.99.0060 prior to July 1, 2023; described in statistical reporting number 6802.99.0090 effective July 1, 2023)” in lieu thereof.
Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.67 is submitted.
Importers may submit a post summary correction to request a refund of duties for any entries filed on or after the effective date of July 1, 2023, per 88 FR 46362.
In addition, imports which have been granted a product exclusion from the Section 301 measures and which are not subject to the Section 301 duties are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices but instead are subject to the FTZ provisions in 19 CFR part 146.
To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the Office of the U.S. Trade Representative (USTR), CBP said importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe. If the entry is beyond the PSC filing timeframe, importers may protest the liquidation if within the protest filing timeframe. The latest guidance on the process for submitting retroactive claims for product exclusions to CBP is found in CSMS 42566154.
Specifically, if importers enter Chinese goods subject to the conforming amendments under HTSUS classification 9903.88.67 on or after their respective effective dates per 88 FR 46362, and pay Section 301 duties, importers should file Post Summary Corrections, to obtain a refund of duties paid.
In situations where an importer has requested a product exclusion and the request is pending with the USTR, importers or their licensed representative may submit a request to extend the liquidation of impacted unliquidated entry summaries to CBP.
Reminder: Importers, customs brokers, and/or filers should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required) for guidance when filing an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise.
For ease of reference, a summary of Section 301 duties and product exclusion notifications is available here.
Questions from the import community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative. Questions related to Section 301 entry-filing requirements, please refer to this document.
Known Issue with Sequence of Release & Prior Notice Confirmation on Ocean Shipment
There is a known issue with the sequencing of the Prior Notice confirmation (A1 message) and the cargo release notification (A3 message) for ocean shipments.
When an ocean shipment is transmitted with FDA data subject to FDA review for BTA (Bio Terrorism Act) & PN (Prior Notice), the A3 release is erroneously automatically posting to the bill before the FDA data is being processed. After FDA has completed their review and Prior Notice has been granted, the A1 message is then posted to the bill letting the Carriers know the cargo is satisfied by FDA review and a may proceed has been issued.
US Customs and Border Protection’s Ocean & ACE Cargo Release teams are aware of the issue. A CSMS message had not been issued at the time this was created.
Trade and Customs Reminders & Events
BROADCAST: GEODIS Live Broadcast: Valuation and Taxes in Canada
19 Oct 2023 2:00-3:00PM ET
The webinar will provide an overview of the new regulations for customs brokers, which mandate a continuing education requirement to maintain an individual license. The webinar will present an implementation overview as well as the next steps for customs brokers to take to meet the upcoming program requirements.
EVENT: Apparel Classification Workshop
07 Nov 2023 10:00 AM-1:00PM ET
We look forward to seeing you at the USFIA Apparel Trade & Transportation Conference. If you are interested in classification issues, be sure to come to New York City early so that you can join us for a special pre-conference event. USFIA invites you to participate in a meeting with key National Import Specialists and gain a better understanding of the U.S. Customs & Border Protection classification process.
