January 13, 2023
Notice of Extensions for Reinstated Product Exclusions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
In prior Federal Register notices, the U.S. Trade Representative modified the actions being taken in the section 301 investigation of China’s acts, policies, and practice related to technology transfer, intellectual property, and innovation by excluding certain products from additional duties. Apart from certain exclusions related to the COVID-19 pandemic, all 549 exclusions expired that the U.S. Trade Representative extended. In 2022, the U.S. Trade Representative reinstated 352 of these exclusions, but these expired on December 31, 2022.
The U.S. Trade Representative has determined to extend all exclusions previously reinstated under heading 9903.88.67 and U.S. notes 20(ttt)(i), 20(ttt)(ii), 20(ttt)(iii), and 20(ttt)(iv) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS). The reinstated exclusions are available for any product that meets the description in the product exclusion.
The U.S. Trade Representative has reinstated these exclusions through September 30, 2023.
Crane Trade Services can assist you with questions regarding this matter. For assistance please contact CWTSConsulting@craneww.com.
On December 21, 2022, United States Trade Representative (USTR) published 87 FR 78187, extending 352 previously reinstated Section 301 product exclusions for nine months, through September 30, 2023.
The exclusions listed, regardless of whether the importer filed an exclusion request, are available for any product that meets the description as set out in the Annex to 87 FR 17380. Further, the scope of each exclusion is governed by the scope of the 10-digit HTSUS classification and product descriptions provided in the Annex to 87 FR 17380, not by the product descriptions set out in any particular request for exclusion.
The functionality for the acceptance of the extended product exclusions will be available in the Automated Commercial Environment (ACE) as of 7 am eastern standard time, December 29, 2022.
Instructions for importers, brokers, and filers on submitting entries to CBP containing granted exclusions by the USTR from the Section 301 measures are set out below:
• Per the Annex to 87 FR 17380 and Federal Register notice 87 FR 78187, in addition to reporting the regular Chapters 03, 05, 16, 29, 34, 38, 39, 40, 42, 48, 50, 51, 52, 54, 55, 56, 57, 58, 60, 61, 62, 63, 65, 68, 69, 70, 73, 75, 76, 82, 83, 84, 85, 86, 87, 90, 91 and 94 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.67 (Articles, the product of China as provided for in U.S. notes 20(ttt)(i), 20(ttt)(ii), 20(ttt)(iii), and 20(ttt)(iv) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
• Importers shall not submit the corresponding Chapter 99 HTSUS classification for the Section 301 duties when HTSUS 9903.88.67 is submitted.
Imports which have been granted a product exclusion 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 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 USTR, 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 extended exclusions under HTSUS classification 9903.88.67 on or after January 1, 2023, and pay Section 301 duties, importers should file Post Summary Corrections on or after January 2, 2023, 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.
Please refer to CSMS 39587858 for guidance when filing an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise.
Questions from the importing 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 CSMS message CSMS #52417905 (Information on Trade Remedy Questions and Resources), CSMS #52417905 - UPDATE: Information on Trade Remedy Questions and Resources (govdelivery.com),
Crane Trade Services can assist you with questions regarding this matter. For assistance please contact CWTSConsulting@craneww.com.
December 21st, 2022
The U.S. Trade Representative extended existing tariff exclusions on 352 products from China for an additional nine months.
The tariffs, which were instated by the Trump Administration in 2018, were enacted through a “Section 301 Investigation” that found the country’s policies and practices around technology transfer and intellectual property were unreasonable and discriminatory.
Exempted products include everything from vacuum cleaners to sewing machines.
Among the industry groups weighing in, the American Apparel & Footwear Association issued a statement praising the extension.
“While this is an important step to rein in inflation, there is still much that the administration can do to help the American economy,” AAFA President and CEO Steve Lamar said in the release. “Tariff costs have been a primary concern for the apparel and footwear industry for years now.”
Lamar also noted that the Biden administration has collected “far more” revenue from industry under the Section 301 tariffs than the Trump administration.
A May 2022 report from the Congressional Research Service noted legislators questioning “USTR’s ability to ‘pick winners and losers’ through granting or denying requests or have pushed for broad tariff relief amid concerns about the negative impact of tariffs on the U.S. economy.”
In a statement released on Friday, the USTR said that the latest extension “will help align further consideration of these exclusions with the ongoing comprehensive four-year review” of the Section 301 tariffs.
Comments on the tariffs are open through January 17th. As stated in October, the USTR is exploring the tariffs’ impact on “U.S. small businesses, U.S. manufacturing, critical supply chains, U.S. technological leadership, and possible tariff inversions.”
Here’s a look at some of the previous developments and coverage of the Section 301 tariffs and their impact on supply chains.
Biden admin seeks public input on China tariff review
Relief from China tariffs unlikely as phase 1 deadline looms
USTR blasts WTO after panel rules against steel, aluminum tariffs
From Section 301 to COVID-19: How a volatile China changed supply chains
Crane Trade Services can assist you with questions regarding this matter. For assistance please contact CWTSConsulting@craneww.com.
May 5th, 2022
U.S. law requires that Section 301 tariffs terminate after a period of four years, unless a “representative of the domestic industry which benefits” from said tariffs submits a written request for their continuation. Within 60 days of the end of the four year period, the USTR must notify members of the domestic industry of the termination, and upon receipt of a request to continue them, conduct a review to consider their continuation.
The USTR has issued a Federal Register notice to take the first step of the statutory review process to determine if the China tariffs should be continued beyond the 4-year mark.
Importers who are affected by these tariffs are encouraged to take the opportunity to provide their remarks to the USTR, including the economic impact of these tariffs on their US business operations.
Please review the Federal Register notice at the below link:
Crane Trade Services can assist you with questions regarding this matter. For assistance please contact CWTSConsulting@craneww.com.
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