U.S. Customs and Border Protection has published information on Section 301 Trade Remedies to be assessed on certain products from China, known as Section 301 List 4 Goods. In light of the events outlined in the articles above, note the below CSMS information is subject to change.
The tariff subheadings subject to additional duties of 10% (now proposed 15%) under List 4 are separated into two lists with different effective dates:
- List 4A – includes tariff subheadings where China’s share of U.S. imports from the world is less than 75 percent for each subheading. The additional tariff of 10% ad valorem is effective September 1, 2019. Therefore, in addition to regular chapter reporting requirements, report the following HTS number and duty rate: 9903.88.15, 10% (now proposed 15%).
- List 4B – includes tariff subheadings where China’s share of U.S. import from the world is 75 percent or greater for each subheading. To provide a longer adjustment period for U.S. interested persons, the additional duty of 10% ad valorem is delayed until December 15, 2019. Therefore, in addition to regular chapter reporting requirements, report the following HTS number and duty rate. 9903.88.16, 10% (now proposed 15%).
CHAPTER 98 GOODS – The additional duties imposed by headings 9903.88.01 through 9903.88.04, 9903.88.09, 9903.88.15 and 9903.88.16 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.
FOREIGN TRADE ZONES – Any product in list 4A 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 am eastern daylight time on September 1, 2019, 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.
Any product in list 4B 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 am eastern daylight time on December 15, 2019, 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.
DRAWBACK – Section 301 duties are eligible for duty drawback.
PRODUCT EXCLUSIONS – USTR will establish a process for Exclusion requests and will publish in a separate notice.
Read the full U.S. CBP CSMS Message here.