**Update: CBP has notified the trade that HTS 9903.88.67 will be activated in ACE on April 12th. Entries filed between April 12th, 2022, and December 31st, 2022, may claim the exclusion at time of importation using this HTS. Importers who paid Section 301 duty on entered merchandise that is now subject to an exclusion between October 12th, 2021 and April 11th, 2022 may recover previously paid duty via a Post Summary Correction (PSC). Tradewin may help with exclusion determinations and helping you build a post entry strategy.**
On March 24th, 2022, the United States Trade Representative (USTR) issued an announcement reinstating certain product exclusions previously granted and expired for items subject to 301 duties. There are 352 product types that have been reinstated as part of this list, covering a broad range of commodities.
Section 301 duties on goods manufactured in China were announced and expanded through four tranches, spanning from June 2018 to January 2020. Exclusions specific to Section 301 are granted to specific product types, identified either by the HTS Classification and/or a physical description of the goods, where Section 301 duties are waived based on a given economic need demonstrated in the exclusion request.
This announcement reactivates exclusions retroactively from October 12th, 2021, for affected products, and exclusions will run through the end of December 2022.
This announcement is pending publication in the Federal Register, and guidance from US Customs and Border Protection (CBP) on how these exclusions will be implemented is forthcoming. However, should the implementation follow the structure of previous exclusions, importers would claim the exclusion on eligible entries on a go-forward basis using new tariff 9903.88.67. Importers would retroactively request refunds of previously paid duties via a Post Summary Correction (PSC) or Protest, depending on the timing of the original entry date.
Tradewin can assist clients in taking advantage of these exclusions by evaluating whether their specific products qualify for a particular exclusion and then filing the appropriate post-entry refund claims. Please feel free to reach out to us, we’ll be happy to support. A complete list of the reinstated exclusions can be found in the notice here.