GUIDANCE: Section 301 China Reinstatement of Certain Exclusions

Cargo Systems Messaging Service -- CSMS #51469298 -- GUIDANCE: Section 301 China Reinstatement of Certain Exclusions

The purpose of this message is to provide guidance regarding the retroactive reinstatement of certain exclusions to China 301 trade remedies from October 12, 2021 through December 31, 2022.

BACKGROUND

On March 28, 2022, the United States Trade Representative (USTR) published 87 FR 17380 retroactively reinstating certain exclusions with respect to certain goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on October 12, 2021, and before 11:59 p.m. eastern daylight time on December 31, 2022.

87 FR 17380 announces the USTR extension of 137 exclusions covered under Section 301 List 1, 59 exclusions on List 2, 266 exclusions on List 3, and 87 exclusions on List 4.

The reinstated exclusions can be claimed using Harmonized Tariff Schedule of the United States (HTSUS) classification 9903.88.67 and are available for any product that meets the description in the product exclusion as set out in Annex A to 87 FR 17380. In particular, the scope of each exclusion is governed by the scope of the ten-digit HTSUS subheadings and product descriptions in Annex A to 87 FR 17380.

The functionality for the acceptance of the reinstated product exclusions will be available in the Automated Commercial Environment (ACE) as of 7:00 am eastern standard time, April 7, 2022.

GUIDANCE

Instructions for importers, brokers, and filers on submitting entries to CBP containing granted exclusions by the USTR from the Section 301 measures are set out below:

Per 87 FR 17380 Annex A, in addition to reporting the regular Chapters 03, 05, 16, 29, 34, 38, 39, 40, 42, 48, 50, 51, 52, 54, 55, 56, 57, 58, 60, 61, 62, 63, 65, 68, 69, 70, 73, 75, 76, 82, 83, 84, 85, 86, 87, 90, 91 and 94 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.67 (Articles, the product of China as provided for in U.S. note 20 (ttt) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).

Importers shall not submit the corresponding Chapter 99 HTSUS number for the Section 301 duties when HTSUS subheading 9903.88.67 is submitted.

ADDITIONAL INFORMATION

Imports which have been granted a product exclusion from the Section 301 measures and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146.

To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe. If the entry is beyond the PSC filing timeframe, importers may protest the liquidation if within the protest filing timeframe. The latest guidance on the process for submitting retroactive claims for product exclusions to CBP is found in CSMS 42566154.

In situations where an importer has requested a product exclusion and the request is pending with the USTR, importers or their licensed representative may submit a request to extend the liquidation of impacted unliquidated entry summaries to CBP.

Reminder: importers, brokers, and/or filers should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTSUS when 98 or 99 HTSUS are required) for guidance when filing an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise.

New Balance Opens New Factory in Methuen, Massachusetts

As reported March 29, 2022, in the Eagle-Tribune.

Acquisition of Items for Which Federal Prison Industries Has a Significant Market Share

On March 29, 2022, the Department of Defense published in the Federal Register (87 FR 18001 Acquisition of Items for Which Federal Prison Industries Has a Significant Market Share

SUMMARY: DoD is publishing the updated annual list of product categories for which the Federal Prison Industries' share of the DoD market is greater than five percent.

SUPPLEMENTARY INFORMATION: On November 19, 2009, a final rule was published in the Federal Register at 74 FR 59914, which amended the Defense Federal Acquisition Regulation Supplement (DFARS) subpart 208.6 to implement section 827 of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181). Section 827 changed DoD competition requirements for purchases from Federal Prison Industries, Inc. (FPI) by requiring DoD to publish an annual list of product categories for which FPI's share of the DoD market was greater than five percent, based on the most recent fiscal year data available. Product categories on the current list, and the products within each identified product category, must be procured using competitive or fair opportunity procedures in accordance with DFARS 208.602-70.

The Principal Director, Defense Pricing and Contracting (DPC), issued a memorandum dated March 16, 2022, that provided the current list of product categories for which FPI's share of the DoD market is greater than five percent based on fiscal year 2021 data from the Federal Procurement Data System. The product categories to be competed effective April 15, 2022, are the following:

• 7125 (Cabinets, Lockers, Bins, and Shelving)
• 8105 (Bags and Sacks)
• 8405 (Outerwear, Men's)
• 8415 (Clothing, Special Purpose)
• 8420 (Underwear and Nightwear, Men's)

The list is unchanged from the one issued in 2021.

China 301 Exclusions Reinstated

On March 28, 2022, the Office of the U.S Trade Representative published in the Federal Register (87 FR 17380) Notice of Reinstatement of Certain Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

Of 549 exclusions eligible for reinstatement, 352 were approved (64%).

Chapter	# Eligible	#Approved	Approval Rate
42 Travel Goods	8	6	75%
50-60 Textiles	28	16	57%
61-62 Apparel	12	10	83%
63 Textile Made-up Articles	16	7	44%
94 Textile Furniture	8	5	63%

The reinstated product exclusions will apply as of October 12, 2021, and extend through December 31, 2022.

Customs and Border Protection will issue instructions on entry guidance and implementation. When the Customs instructions are issued, Agathon Associates send that document to clietns to give to their brokers. Since the imports are recent enough that they have not been liquidated, brokers can get refunds by filing a Post Summary Correction for each importation, however, there will be limit time during which to file for refunds.

All petitions filed by Agathon Associates on behalf of clients were approved.

Superabsorbent Polymers From the Republic of Korea: Postponement of Preliminary Determination in the LessThan-Fair-Value Investigation

On March 28, 2022, the Department of Commerce published in the Federal Register (87 FR 17270) Superabsorbent Polymers From the Republic of Korea: Postponement of Preliminary Determination in the LessThan-Fair-Value Investigation

Another FT Granted with no Inverted Tariff Relief for Textiles

On March 28, 2022, the Foreign Trade Zone Board published in the Federal Register (87 FR 17269) Foreign-Trade Zone (FTZ) 138 -- Columbus, Ohio; Authorization of Limited Production Activity; Fluvitex USA, Inc.; (Quilts, Comforters and Cushions); Groveport, Ohio

The FTZ Board authorized the production activity described in the notification on a limited basis, subject to the FTZ Act and the Board’s regulations, including Section 400.14, and further subject to a restriction requiring all foreign-status materials be admitted to the zone in privileged foreign status (19 CFR 146.41) with the exception of foreign-status polybags.

In other words, no inverted tariff relief for textile components in articles entering U.S. commerce.

Navy Fleece Liner Contract Awarded

Bestwork Industries for the Blind Inc.,** Cherry Hill, New Jersey, has been awarded a maximum $12,271,104 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for blue, black and coyote brown fleece liners. This is a one-year base contract with two one-year option periods. Location of performance is New Jersey, with a March 23, 2023, ordering period end date. Using military service is Navy. Type of appropriation is fiscal 2022 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-22-D-B124).

**Mandatory source