Effective July 1, some importers found select Section 301 exclusions unavailable.
On July 1, 2020 USITC released a revision to the Harmonized Tariff Schedule which included changes to 10 digit HTS codes 4818.90.0000; 3926.90.9990 and 6307.90.9889. Some previously granted exclusions for 10 digit subheading were no longer listed in the revised Harmonized Tariff Schedule. In order for CBP to recognize an exclusion, both product description and the 10 digit subheading must be accurate, and listed as an exclusion in the HTSUS. This discrepancy between the subheadings listed in the exclusions and those subheadings in effect as of July 1,2020 meant the exclusions were no longer available to the importers.
On July 10, 2020 USTR issued technical amendments to address these discrepancies. However, as of the same date, the discrepancy still remains between subheadings listed in the exclusion and those subheadings in effect as of July 1,2020 tariff schedule. Exclusions will continue to be unavailable to importers until the USITC updates the tariff schedule adding back in the exclusions subheadings as referenced in U.S. note 20 to subchapter III of chapter 99 of the Harmonized tariff schedule.
Many of the goods effected are medical product exclusions including face masks; woven gauze sponges; patient’s disposable identification wristbands and sterile cups and bags to name a few.
The M-PACT Solutions Team has updated their Section 301 tool available here. Once this discrepancy is corrected, M-PACT Solutions offers services to file post entry summary on entries to recoup the additional duties paid. For more information, please contact them at concierge@m-pactsolutions.com.
Source: M-PACT Solutions Consulting Team, Federal Register
