USTR Notice Details Tariff Treatment for New 10 Percent Section 301 Duties

Importers of products covered by the new third set of 10 percent Section 301 tariffs on China will file under two new tariff provisions in Chapter 99 beginning at 12:01 a.m. EDT on Sept. 24, according to a notice published Sept. 21 by the Office of the U.S. Trade Representative. New subheading 9903.88.03 will cover the vast majority of new products subject to tariffs that fall in 8-digit subheadings fully subject to Section 301 tariffs. New subheading 9903.88.04, on the other hand, covers a set of 11 8-digit subheadings that are only partially covered and have exceptions at the 10-digit level.

Provisions with carve-outs covered by new subheading 9903.88.04 include non-aromatic organo-inorganic compounds, provided for in 2931.90.90 (except 2931.90.9051); upholstered seats with wooden frames of 9401.61.40 (except 9401.61.4001); seats with wooden frames, not upholstered, in 9401.69.60 (except 9401.69.6001); upholstered seats with metal frames in 9401.71.00 (except 9401.71.0001, 9401.71.0005, 9401.71.0006 and 9401.71.0007); seats with metal frames, not upholstered, provided for in 9401.79.00 (except 9401.79.0001, 9401.79.0002, 9401.79.0003, and 9401.79.0004).

Also partially covered by new subheading 9903.88.04 are seats of reinforced or laminated plastics in 9401.80.20 (except 9401.80.2001); seats of rubber or plastics of 9401.80.40 (except 9401.80.4001); seats of 9401.80.60 (except 9401.80.6021 and 9401.80.6023); furniture of reinforced or laminated plastics in 9403.70.40 (except 9403.70.4003); and plastic furniture in 9403.70.80 (except 9403.70.8003). Subheading 9903.88.04 also covers machines for the reception, conversion and transmission or regeneration of voice, images or other data in 8517.62.00, except for machines provided for in new statistical reporting number 8517.62.0090. That new provision is detailed in a notice also issued Sept. 21 by the International Trade Commission.

According to that ITC notice, tariff numbers in Chapter 44 currently listed as covered by the tariffs under subheading 9903.88.03 are set to change on Oct. 1. “These changes are due to the requirements of Presidential Proclamation 9771 effective July 30, 2018, approving, among other things, modifications to the HTS to implement changes requested by the World Customs Organization to comply with the Harmonized System nomenclature,” the ITC said.

CBP also issued instructions for complying with the new Section 301 tariff requirements, in a CSMS message sent Sept. 21. The new tranche appears to mirror the previous two in all respects, save that the new tariffs are only 10 percent instead of 25 percent, at least until they increase on Jan. 1. As with the previous tariffs, Chapter 98 provisions are exempt, with the exception of subheadings 9802.00.40, 9802.00.50, 9802.00.60 and 9802.00.80. “Section 301 duties are eligible for duty drawback,” CBP said.