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CBP Guidance on Entries of Chinese Goods Subject to Section 301 Tariffs

Thursday, July 05, 2018
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has provided the following information on filing requirements for goods imported from China that will be subject to an additional 25 percent tariff starting July 6. This tariff, which will affect 818 tariff lines, is being imposed in response to a Section 301 investigation determination that China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation are unreasonable and discriminatory.

Coverage. Any article classified in a covered subheading that is a product of China will be subject to a 25 percent ad valorem duty rate in addition to the general (Column 1) duty rate. This additional tariff will be effective with respect to goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. Eastern Standard Time on July 6. The tariff is based on the country of origin, not the country of export.

Filing. In addition to reporting the HTSUS Chapter 1-97 classification of the imported good, importers must also report the HTSUS 9903.88.01 special tariff number for covered goods.

Chapter 98. The additional tariff will not apply to products for which entry is properly claimed under a heading or subheading in Chapter 98. When submitting an entry in this case, the filer must first report subheading 9903.88.01 followed by the applicable Chapter 98 subheading and the Chapter 1-97 classification for the commodity being imported.

Drawback. Section 301 duties are eligible for duty drawback.

Trade Preference Programs. Covered products that are eligible for special tariff treatment under HTSUS General Note 3(c)(i) will be subject to the additional tariff.

FTZs. Any covered product (except those eligible for admission under domestic status) that is admitted into a foreign-trade zone on or after 12:01 a.m. EST on July 6 may only be admitted as privileged foreign status. Upon entry for consumption such products will be subject to any ad valorem duty rates or quantitative limitations related to classification under the applicable subheading.

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