The additional import duties for Chinese goods covered by the September 21, 2018 list of products subject to the Section 301 action are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on September 24, 2018.
Any article classified in a subheading covered by the September 21 list that is a product of China is subject to a 10% ad valorem duty rate, in addition to the general (Column 1) rate of duty for that particular subheading.
There are two special tariff numbers that will apply to goods covered by the September 21, 2018 list, 9903.88.03 and 9903.88.04. Heading 9903.88.03 covers all subheadings listed in U.S. note 20(f) to Subchapter III to Chapter 99 (5,734 eight-digit HTSUS subheadings); heading 9903.88.04 covers all subheadings listed in U.S. note 20(g) to Subchapter III to Chapter 99 (11 eight-digit HTSUS subheadings with partial exceptions at the 10-digit level).
In addition to reporting the Chapter 1-97 HTSUS classification of the imported merchandise, importers shall also report the relevant 9903.88.03 or 9903.88.04 special tariff number for goods subject to the additional duty assessment of 10% ad valorem as a result of the Section 301 trade remedy.
9903.88.03: 10% ad valorem additional duty for articles the product of China,… as enumerated in U.S. note 20(f) to Subchapter III to Chapter 99.
9903.88.04: 10% ad valorem additional duty for articles the product of China,… as enumerated in U.S. note 20(g) to Subchapter III to Chapter 99.
Please note that in accordance with Annex B to the September 21, 2018 notice of action, effective 12:01 AM Eastern Standard Time on January 1, 2019, the additional rates of duty imposed by headings 9903.88.03 and 9903.88.04 will increase to 25% ad valorem.
The product descriptions provided in Annex C to the September 21, 2018 notice of action are provided for informational purposes only, and are not legally controlling. The provisions of the relevant HTSUS subheadings listed in Annex A are controlling for the purpose of determining whether a good is subject to the Section 301 remedy.
New Statistical Reporting Number for Subheading 8517.62.00, HTSUS
U.S. note 20(g)(2) to Subchapter III to Chapter 99 indicates that heading 9903.88.04 applies to articles classified in subheading 8517.62.00, except for machines provided for in statistical reporting number 8517.62.0090. 8517.62.0090 is a new statistical reporting number that will be added to the HTSUS on or before September 24, 2018. For more information, see https://www.usitc.gov/tariff_affairs.htm
Products Covered by the June 20, 2018 and August 16, 2018 Lists for the Section 301 Action
The instructions for goods covered by the June 20, 2018 and August 16, 2018 lists remain unchanged.
The additional import duties for Chinese goods covered by the June 20, 2018 list were effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on July 6, 2018.
In addition to reporting the Chapters 1-97 HTSUS classification of the imported merchandise, importers shall also report the 9903.88.01 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Section 301 trade remedy.
The additional import duties for Chinese goods covered by the August 16, 2018 list were 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.
In addition to reporting the Chapter 1-97 HTSUS classification of the imported merchandise, importers shall also report the 9903.88.02 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Section 301 trade remedy
The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export.
The additional duties imposed by headings 9903.88.01 through 9903.88.04 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.
When submitting an entry in which a heading or subheading in Chapter 98 is claimed on merchandise covered by the Section 301 remedy, the following instructions will apply.
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, 9903.88.02, 9903.88.03, or 9903.88.04, as applicable, followed by the applicable Chapter 98 subheading, and the Chapter 1-97 HTSUS classification for the commodity being imported.
When submitting an entry using a Chapter 98 provision that does not normally require the reporting of a secondary Chapter 1-97 HTSUS classification, neither 9903.88.01/02/03/04 nor the Chapter 1-97 HTSUS should be reported.
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 9903.88.01/02/03/04, and the Chapter 1-97 HTSUS for the commodity being imported.
Products of China that are covered by the Section 301 remedy and that are eligible for special tariff treatment under general note 3(c)(i) to the tariff schedule, or that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99, shall be subject to the additional 25 percent ad valorem rate of duty imposed by headings 9903.88.01 and 9903.88.02, or the additional 10 percent ad valorem rate imposed by heading 9903.88.03 and 9903.88.04.
Section 301 duties are eligible for duty drawback.
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