Seafood Importers Should Be Careful in Claiming Chapter 98 Provisions to Reduce Section 301 Tariffs

Seafood importers should make certain that Chapter 98 exemptions for goods returned to the U.S. after being advanced in value are applicable when filing such claims to reduce exposure to Section 301 duties, a lawyer at a seafood company said during a recent interview with Seafood Source. Ian Moores, general counsel at seafood company F.W. Bryce in Massachusetts, said that the duty exceptions in Harmonized Tariff Schedule subheading 9802.00.50 for goods returned after repair or alteration only apply to U.S. raw fish material processed in China. Additionally, CBP has ruled that headed and gutted raw material that is cut, frozen and packaged goes beyond "alteration," Moore said. The Office of the U.S. Trade Representative recently said the Section 301 tariffs will only be applied to the operation performed in China, not the full value of the good, for imports under the Chapter 98 provisions (see 1808160049). Seafood is not currently subject to Section 301 tariffs, but is on the list of $200 billion of goods proposed for the third round of duties (see 1807100070).