Section 301 Import Duties Q & A

Q. Are products of Hong Kong subject to the additional Section 301 duties?

A. At this time, the additional duties imposed by the Section 301 remedy only apply to articles that are products of the People’s Republic of China (ISO Country Code CN). Imported goods that are legitimately the product of Hong Kong (HK) or Macau (MO) are not subject to the additional Section 301 duties. Please note that Section 301 duties are based on country of origin, not country of export.

Q. Are Section 301 duties eligible for drawback?

A. Section 301 duties are eligible for duty drawback.

Q. How are goods subject to the Section 301 duties treated when they are admitted into a foreign trade zone (FTZ)?

A. Per the Federal Register Notice published by the USTR, any product covered by the Section 301 remedy (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 and that is admitted into a U.S. foreign trade zone on or after 12:01 am EST on July 6, 2018, 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. At this time, products covered by the Section 301 remedy that were admitted as “privileged foreign status” prior to July 6, 2018, will not be subject to the additional duties; products admitted on or after July 6, 2018, may only be admitted as “privileged foreign status,” unless eligible for admission under “domestic status.”

Q. Are products entered under the Section 321 de minimis exemption subject to Section 301 duties?

A. No, goods properly entered under Section 321 are not subject to Section 301 duties. Please note that a formal entry is required if a shipment contains merchandise subject to AD/CVD. Goods subject to AD/CVD do not qualify for Section 321.