USTR Announces Exclusions to Tranche 1 of Section 301 Tariffs Against China

07Jan

USTR Announces Exclusions to Tranche 1 of Section 301 Tariffs Against China

January 7, 2019

Dear Valued Customer:

On December 28, 2018, the U.S. Trade Representative published Federal Register Notice 83 FR 67463 announcing the decision to grant certain exclusion requests from the 25% duty assessed on goods of China with an annual trade value of approximately $34 billion (Tranche 1), as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The product exclusions announced in this notice will apply retroactive to the July 6, 2018 effective date of the $34 billion action (see Federal Register 83 FR 28710) and will extend for one year after the publication of this notice (to about December 28, 2019).

However, due to the government shutdown, CBP’s Trade Remedy is unable to process the exclusions in CBP’s Automated Customs Environment (ACE) until about 10 business days after the shutdown has concluded. Once the ACE enhancements are processed, importers of eligible products imported and entered on/after July 6, 2018 will be able to file for a refund of Section 301 tariffs via a Post Summary Correction (PSC) or a Protest if the entry has liquidated.

Concerning new Customs entries involving excluded merchandise, at the conclusion of the government funding hiatus, CBP will issue instructions on entry guidance and implementation. Any updates to ACE will be implemented 10 business days after the shutdown has concluded. Meanwhile, until these ACE enhancements are completed, Section 301 tariffs must continue to be paid and entry and entry summaries must be submitted without the Chapter 99 product exclusion number referenced in 83 FR 67463. Entry and entry summaries will be rejected by ACE if the Chapter 99 product exclusion number referenced in 83 FR 67463 is transmitted prior to the ACE enhancements.

We are in the process of identifying any Customs entries with tariff numbers on the exclusion list and will reach out to our customers that have imported any goods classifiable under the tariff numbers below. Because not all goods classifiable under certain tariff numbers are necessarily eligible for exclusion, we will need to verify with our customers whether certain items meet the technical descriptions listed next to each tariff number. If the item does not meet the exact description, it may not be eligible for exclusion. Once eligibility for exclusion has been confirmed, we will submit PSCs on your behalf at a nominal fee. If you have imported any such goods and know that they qualify for the exclusion, please notify your nearest James J. Boyle & Co. representative with written details, including a list of eligible products and entry numbers.

For clarification, it is NOT possible to file PSCs for a refund until after Trade Remedy has updated the ACE system with these exclusion enhancements.

HTS #	Description
9903.88.05	New exclusion # to be paired with HTS #’s below for goods eligible for exclusion
8412.21.0075	All goods classifiable under this HTS
8418.69.0120	All goods classifiable under this HTS
8480.71.8045	All goods classifiable under this HTS
8482.10.5044	All goods classifiable under this HTS
8482.10.5048	All goods classifiable under this HTS
8482.10.5052	All goods classifiable under this HTS
8525.60.1010	All goods classifiable under this HTS
8407.21.0080	Spark-ignition engines for marine propulsion, outboard, each rated at not less than 29.83 kW but not more than 44.74 kW
8412.21.0030	Welded hydraulic linear acting (cylinders) engines and motors, each with piston bore of 12.7 mm or more but not over 34.6 mm, with stroke not over 11.43 m, overall length not over 15.24 m and rod diameter not over 1.219 m
8419.90.2000	Stretchers of stainless steel, designed to move rollers to adjust tension of paper fabric to be dried, each with a pivoting arm with an actuator, linear rail movement with an actuator, and front and back units with mounting holes for tube roll bearing housings
8420.10.9080	Roller machines with dies for embossing paper, manually powered
8421.19.0000	Salad spinners of plastics, with capacity of at least 2.4 liters but not more than 3.8 liters
8421.21.0000	Nonelectric water filtration apparatus consisting of three cylinder-shaped filter cartridges, each measuring 6.35 em by 26.67 em, having water storage tank and plastic tubing measuring 0.63 em or more but not over 0.95 em, presented with installation kit
8425.39.0100	Winches, each having a winch frame with a corrosion resistant coating and stainless steel mandrel with nylon bushings, operated manually by a worm gear mechanism
8428.32.0000	Elevators, comprising L-shaped steel buckets bolted to a steel chain, with guide rollers and a drive system
8428.33.0000	Belt conveyors, each comprising a frame with leveling feet, electric motor and food grade plastic conveyor belt
8428.33.0000	Belt conveyors, each comprising a welded frame with leveling feet and casters, electric motor and food grade plastic modular conveyor belt
8439.99.1000	Guards of stainless steel, designed to shield operators of papermaking machines from moving or rotating equipment, each with dimensions ranging from 30 em by 30 em by 50 em to 50 em by 50 em by 4 m, weighing 30 kg or more but not over 100 kg
8439.99.1000	Scrapers (“doctors”) of stainless steel, designed to scrape impurities from the rotating roll surface of the forming and press sections of papermaking machines, each comprising a beam with a blade of non-symmetrical cross section, long aspect ratio, and mounting journals and turning devices on either end, with dimensions ranging from 50 em by 50 em by 8 m to 60 em by 6 m by 11 m, weighing 1 metric ton or more but not over 3 metric tons
8439.99.1000	Frameworks of the forming and press section of papermaking machines, of stainless steel or cladded mild steel with stainless or acid proof steel, each with dimensions ranging from 1 m by 1 m by 1 m to 2.3 m by 2.3 m by 12 m, weighing 500 kg or more but not over 40 metric tons
8439.99.1000	Guides of stainless steel, designed for locating conveyer belts on papermaking machines, each with a moving arm with an actuator and front and back units with mounting holes for tube roll bearing houses, each with dimensions ranging from 40 em by 50 em by 30 em to 1m by 1 m by 50 em, weighing 300 kg or more but not over 500 kg
8439.99.1000	Rollers of steel and cast iron (“nip rollers”) with bearing journals on either end, designed for use in paper manufacturing to mechanically compress paper web to remove water or impart desired mechanical properties in paper web, each with a polymer cover, the foregoing with length of 7 m or more but not over 12 m, with diameter of 1 m or more but not over 1.5 m, weighing 15 metric tons or more but not over 30 metric tons
8439.99.1000	Open containers (“savealls”) of stainless steel, designed to catch water run off generated in the papermaking process, constructed of large square shaped plates and flat constructions with mounting holes on ends, each with dimensions ranging from 50 em by 50 em by 50 em to 1.5 m by 1 m by 10 m, weighing 50 kg or more but not over 2 metric tons
8439.99.1000	Stretchers of stainless steel, designed to move rollers of papermaking machines to adjust tension of fabric, each with a pivoting arm with an actuator, linear rail movement with an actuator and front and back units with mounting holes for tube roll bearing housings
8439.99.1000	Suction boxes of stainless steel, which remove water from paper web or papermaking fabrics during papermaking, each with dimensions ranging from 50 em by 50 em by 8 m to 1 m by 1 m by 10 m, weighing 1.5 metric tons or more but not over 2 metric tons
8439.99.1000	Rollers of stainless steel or cast iron, designed for use in paper manufacturing to support and convey papermaking cloth (i.e. fabric) or the paper web, each weighing 7 metric tons or more but not over 20 metric tons, measuring 7 m or more but not over 12 m in length, with diameter of 40 em or more but not over 1.5 m, presented with bearing journals on either end and a polymer cover
8466.92.5010	Workstands designed to use with miter saws, each with metal tube frame, 4 metal legs and 2 metal extension arms
8466.92.5010	Workstands designed for use with miter saws, each with wheels to make workstand mobile and with sides that fold up to extend the work area
8481.90.9040	Angle cock handle assemblies, of iron and steel, each measuring 11.43 em by 21.59 em by 5.08 em and weighing 0.748 kg
9022.14.0000	Radiation therapy systems, each encased by steel-based structural shell with gantry cover comprising three pairs of plastics-based panels
9032.10.0030	Thermostats designed for air conditioning or heating systems, not designed to connect to the internet, the foregoing designed for wall mounting

According to CBP, all Filer questions related to Section 301 entry filing requirements should be emailed to traderemedy@cbp.dhs.gov.

After the funding hiatus, questions from the importing community concerning ACE rejections should be referred to their ABI Client Representative.

Thank you for your attention and cooperation. If you have any questions, please contact your nearest JJB representative.

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