On November 7, 2019 the Office of the U.S. Representative (USTR) released a notice granting and additional 36 exclusions from the 301 China duties.
Prior, on October 28, 2019, the Federal Register notice (84 FR 57802) was issued notating that these exclusions would be retroactive to September 24, 2018 and extends through August 7, 2020.
CBP also issued CSMS #40564257, dated November 8th, 2019, providing guidance on filing List 3 product exclusions. Per the CSMS, the exclusions are available for any product that meets the description as set out in Annex A to Federal Register Notice 84 FR 57803, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings and product descriptions in the Annex; not by the product descriptions set out in any particular request for exclusion.
As a reminder, for refunds, post-summary correction (PSC) filings can be made by the importer directly or any licensed broker; not just party who filed the original entry.
The U.S. puts in place the latest tariff increase – here’s what you need to know…
As announced on August 30th, 2019 in a Notice of Modification of Action from the Office of the United States Trade Representatives, additional 301 tariffs are now in place. For products covered by Annex A of the August 20, 2019 Federal Register notice, the rate of additional duty will be 15 percent on the current effective date of September 1, 2019. For products covered by Annex C of the August 20 notice, the rate of additional duty will be 15 percent on the current effective date of December 15, 2019.
For questions about this action, contact Associate General Counsel Arthur Tsao, Assistant General Counsel Megan Grimball, or Director of Industrial Goods Justin Hoffmann at (202) 395–5725. For questions on Customs classification or implementation of additional duties on products identified in the Annexes to this notice, email Customs at email@example.com.
See the list of HTS numbers covered by the Sept 1st increase here.
On Friday June 15th, 2018, the United States Trade Representative (USTR) announced that the U.S. will follow through with 25 percent tariffs on approximately $50 billion worth of goods from China in 2018 import value (read announcement here).
The list of goods covered by the order includes mainly industrially significant technology products spread across 1,102 U.S. tariff lines. The list of specific tariff numbers can be found here and, as announced, CBP will begin collecting these additional duties beginning July 6th.
Additionally, there is a second set of HTS numbers which have been identified by the interagency Section 301 Committee as benefiting from Chinese industrial policies. These include the “Made in China 2025” industrial policy, and the set covers about $16 billion worth of imports from China. The second set of products will undergo a public notice and comment process, including a public hearing, after which USTR will issue a final determination on the products from the list that would be subject to the duties, the agency said. Crowell Morning Trade Law wrote a good overview on this, here.
The USTR will “soon provide an opportunity” for the public to request exclusion of “particular products” from the duties to be imposed under Section 301 of the Trade Act of 1974, and will issue a notice in the Federal Register with details on this process within the next few weeks, USTR said.
On Wednesday, November 8th, CBP published a General Notice in the Federal Register announcing the transition of Daily and Preliminary Monthly Statements to ACE. “As of December 9th, 2017, ACE will be the sole CBP-authorized EDI system for generating, transmitting and updating daily and monthly statements, and ACE will no longer be a CBP authorized EDI system for such purpose”. The one exception is Reconciliation entries (type 09) which are scheduled to be deployed to ACE on February 24th, 2018.
Also scheduled to transition to ACE on December 9th is the ability to file e214’s, for FTZ admission, and
the creation and maintenance of Manufacturer ID’s (MID.
In addition to Reconciliation entries, the release scheduled for February 24th includes:
• Drawback: Support for core trade processing and
›Automated Surety Interface (ASI)
(Entry Summary Nightly, Entry Summary Quarterly, and Monthly Continuous Bond
• HTS Query
› Drawback Bond Decrementation
› Continuous Bond Sufficiency
No additional ACE deployments are scheduled beyond this release at this time.
As an update to our Blog article of October 24th, on last Thursday’s ACE Technical Call it was announced that CBP has been receiving many questions regarding the new automated in-bond requirements which are scheduled to go into effect on November.
CBP confirmed on the call that currently they are not planning on requiring any additional information on electronic In-Bonds beyond what they receive today. For instance, the 6-digit HTS number will not be required initially. Rather, CBP’s Office of Field Operations will be issuing guidance soon on how they intend to role this out with ‘delayed enforcement.’
On May 18, 2017, the Harmonized Tariff Schedule (HTS) flagging for all Environmental Protection Agency programs for all filers will be enforced. Once the flags are enforced, the filer will either need to file the required information electronically using the PGA message set or disclaim using the appropriate code.
Reminder from EPA: The importer is responsible for knowing what to file, regardless of whether a tariff code has been flagged.
For questions regarding which imports require which EPA filing requirements, contact the following:
In an ongoing effort to keep the EPA HTS Code flagging adequate for filers, some changes to the EPA flags were made on 2/9/2017 in ACE by CBP (see CSMS #17-000072). Please keep in mind, the importer is responsible for knowing what to file, regardless of whether a tariff code has been flagged.
• 10 HTS codes had flags removed for EPA
• 61 HTS codes had flags for EPA changed from “Required” to “May Be Required” to allow for disclaims
Paper filings and disclaims: Submission of paper documents is allowed for filers not using the complete PGA Message Set. However, for a filer proceeding without the PGA Message Set, if filing via DIS or Paper, the EPA expects a disclaim reason code of C (DIS) or D (Paper).
Questions on what to file: For questions regarding which imports require which EPA filing requirements, please contact the following:
The recent expansion of subheading 9801.00.10 of the Harmonized Tariff Schedule affects time limits for filing duty free claims for returned goods, and the documents that may be requested when reviewing such claims.
As discussed in US Customs’ CSMS #17-000046, subheading 9801.00.10 now includes all products exported from and returned to the United States, regardless of country of origin.
For US origin products, there is no time limit on filing a claim. For foreign origin products, there is a 3-year time limit. The provision affecting “Returned Property” applies to U.S. or foreign articles returned to the United States and entered or withdrawn from warehouse for consumption on or after April 25, 2016.
With respect to submission of documentation of duty free claims, CBP has outlined the specific types of written proof required when claiming duty free treatment under 9801.00.10. Prior to this clarification many were unclear as to what the requirement may be (e.g., Manufacturer’s Affidavit?, Form 3311?, Proof of export?)
For either U.S. manufactured goods or foreign origin goods (for formal entries valued over $2,500 only): Declaration by Foreign Shipper indicating that the products were not advanced in value or condition while outside the United States. A certificate from the master of a vessel stating that the products are returned without having been un-laden from the exporting vessel may be accepted in lieu of the declaration by the foreign shipper;
For U.S. manufactured goods (for formal entries valued over $2,500 only): for U.S. goods formally entered that are not clearly marked with the name and address of the U.S. manufacturer, CBP may require a Manufacturer’s Affidavit confirming that the articles were made in the United States;
One of the following documents will be deemed sufficient proof of export from the United States for U.S. manufactured goods or foreign origin goods, provided the information contained therein proves an export from the United States:
a) Copy of the entry into the foreign country;
b) U.S. export invoice or bill of lading/airway bill; or)Electronic Export Information (EEI) or the Automated Export System (AES) filing exemption.
For aircraft and aircraft parts and equipment returned to the United States by or for the account of an aircraft owner or operator and intended for use in his own aircraft operations, within or outside the United States, a CBP Form 3311, or its electronic equivalent may be used as stated in 19 CFR 10.1.
For U.S. origin goods that were originally exported under a Department of State license that are now being re-imported, formal entry is required regardless of value along with the Directorate of Defense Trade Controls (DDTC) Partnership Government Agency (PGA) message set.
For U.S. manufactured aircraft returning to the United States, that were sold to a foreign government under the Foreign Military Sales Program, formal entry is required if any maintenance is being performed on the aircraft while in the United States. The repairs have to be authorized via a specific case line in the Letter of Offer and Acceptance (LOA). The LOA is the agreement between the United States and the foreign government regarding the sale of munitions and other articles to the foreign government.
a)At the time of export of the aircraft, the EEI has to be filed for the maintenance of the aircraft.
For U.S. manufactured aircraft returning to the United States that were sold to a foreign government under the Foreign Military Sales program, where modifications or enhancements will be made to the aircraft, then the following is required for the import and subsequent export of the aircraft:
a) Formal entry is required.
b) At the time of export, the EEI submission is required, citing the Directorate of Defense Trade Controls export license (DSP-5).
In follow up to yesterday’s post on changes to drawback filings that are effective October 29, please note that US Customs has revised the ACE Entry Summary Business Process document (now version 7.5a – Trade) in which Section 18, the drawback section, has been clarified and addresses feedback from the trade community. Together, these two resources should provide filers with the latest guidance on filing drawback claims.
Filers (both ABI and non-ABI) will submit only Entry type 47 for drawback; entry types 41-46 have been consolidated to the type 47 entry and will no longer be valid.
When submitting a drawback claim, filers will now provide the applicable provision. The drawback provision is an existing data element from paper claim form 7551. If transmitting using ABI, it will need to be specified in the 10 record. The list of Provisions can be found in appendix A in the Drawback CATAIR.
CBP Form 7551, Drawback Entry, and CBP Form 7552, Certificate of Manufacturer, will no longer be required when filing an ABI drawback entry.
There will be a limit of 5,000 import, manufacturing, and export or destroyed records per drawback claim. Filings will be permitted at the 10 digit Harmonized Tariff Schedule (HTS) line level and required at the 6 digit HTS line level. For Petroleum type filings, 8 digit HTS will be required.
Trade filers will also be required to provide an action indicator for each import and/or manufacturing record, informing CBP of the end result of the import.
Filers will also need to upload documents via the Document Image System (DIS) to complete the drawback claim. If additional information is required, CBP will send a CBP Form 28 (Request for Information) to the filer through the ACE Portal or by U.S. mail. ABI filers may submit a response to the CBP Form 28 using the ACE Portal or DIS. Non-ABI filers may respond by mail.
There is much more helpful guidanceposted on CBP’s website, including FAQs and links to additional resources.