On April 26, 2021, the US Trade Representative (USTR) published in the Federal Register a notice that makes a technical amendment to the exclusions that apply to certain products of China covered by the September 24, 2018 action (List or Tranche 3) that were exported from China before May 10, 2019, and entered the United States after May 10, 2019, and before June 15, 2019.
The September action imposed additional 10% ad valorem duties on goods of China classified in 5,757 full and partial subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), with an approximate annual trade value of $200 billion. See 83 FR 47974, as modified by 83 FR 49153. In May 2019, the USTR increased the additional duty to 25 percent, with an effective date of May 10, 2019. See 84 FR 20459.
To account for customs enforcement factors and the average transit time between China and the United States by sea, an implementing notice published on May 15, 2019, provided that products of China covered by the September 2018 action that were exported before May 10, 2019, were not subject to the additional duty of 25 percent, as long as the products entered into the United States prior to June 1, 2019. See 84 FR 21892. This subsequently was amended to extend the June 1, 2019 date to June 15, 2019. See 84 FR 26930. To distinguish the covered products of China subject to the 10 percent rate of additional duty from those subject to the 25 percent rate, a new heading in Chapter 99 of the HTSUS (9903.88.09) was created to cover products from China exported before May 10, 2019, and entered into the United States on or after May 10, 2019, and before June 15, 2019. See 84 FR 21892, as modified by 84 FR 26930.
Published exclusions under the $200 billion action were to apply as of September 24, 2018, the effective date of the $200 billion action, and extend to August 7, 2020. However, the implementing language used in the exclusions notices did not include a reference to HTSUS heading 9903.88.09 and therefore did not have the effect of excluding products that were exported before May 10, 2019, and entered into the United States on or after May 10, 2019, and before June 15, 2019. The annex to this notice makes a technical correction to the exclusions granted under the $200 billion action to include HTSUS heading 9903.88.09. Like all exclusions under this Section 301 investigation, this technical correction applies to entries of goods that are not liquidated or to entries that are liquidated but not final.
Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption under Harmonized Tariff Schedule of the United States (HTSUS) heading 9903.88.09, note 20(l) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified by inserting the following sentence after the first paragraph:
“The product exclusions provided by headings 9903.88.13, 9903.88.18, 9903.88.33, 9903.88.34, 9903.88.35, 9903.88.36, 9903.88.37, 9903.88.38, 9903.88.40, 9903.88.41, 9903.88.43, 9903.88.45, 9903.88.46 and 9903.88.48 shall apply to articles the product of China that were entered under heading 9903.88.09 and that are provided for in this subdivision”.