CBP Issues Updated Section 301 Filing Instructions for Merchandise Entered Beginning Aug. 23

CBP on Aug. 21 issued new filing instructions for goods subject to Section 301 duties, in light of recent changes to how the duties apply to goods from China and a new group of tariff subheadings that will become subject to the tariffs in the coming days. The agency’s CSMS message contains updated information on how to file Chapter 98 entries for several subheadings of that chapter newly subject to duties (see 1808160049), as well as how to enter goods under the 279 eight-digit subheadings for which Section 301 duties take effect at 12:01 a.m. on Aug. 23 (see 1808080020).

For the second tranche of products newly subject to Section 301 duties, filers should enter such goods under new subheading 9903.88.02 in addition to the regular Chapter 1-97 subheading applicable to the merchandise. The subheading for the first group of goods already subject to Section 301 tariffs since July 6 remains 9903.88.01. The tariff applicable to both groups of goods is 25 percent. “The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export,” CBP reiterated.

For both sets of tariffs, USTR also ended a previously existing exemption for all goods properly classified in a Chapter 98 subheading. Now, Section 301 goods will apply to the Chinese-origin portion of U.S. goods returned for repair or alterations (9802.00.40 and 9802.00.50), processing (9802.00.60) and assembly (9802.00.80). “The provisions related to goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80 are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Daylight Time on August 23, 2018,” CBP said.

From that date on, when submitting “an entry using a Chapter 98 provision that normally requires the reporting of a secondary Chapter 1-97 HTSUS classification, a filer must first report subheading 9903.88.01 or 9303.88.02, as applicable, followed by the applicable Chapter 98 subheading, and the Chapter 1-97 HTSUS classification for the commodity being imported,” CBP said. For Chapter 98 provisions that don’t normally also require reporting of a Chapter 1-97 provision, “neither 9903.88.01/02 nor the Chapter 1-97 HTSUS should be reported,” it said. “When submitting an entry for a Temporary Importation under Bond (TIB), a filer must first report the applicable subheading in Chapter 98 (i.e., in heading 9813), followed by subheading 9903.88.01/02, and the Chapter 1-97 HTSUS for the commodity being imported,” CBP said.

Questions should be directed to CBP’s trade remedy emailbox at traderemedy@cbp.dhs.gov.