U.S. Customs and Border Protection (CBP) made recommendations for importers to file a request to extend liquidation for entries containing Chinese origin product with Section 301 duties paid, where an exclusion request was filed with the U. S. Trade Representative (USTR), but it is still pending approval.
This includes both the importer who filed the exclusion request, as well as other importers of like products.
All approved Section 301 exclusions are retroactive to the effective date of the particular Section 301 List, and extend for one year from the date of publication of the exclusion notice.
- List 1 was effective July 6, 2018
- List 2 was effective August 23, 2018
- List 3 was effective Sep 24, 2018.
We are now past the one year statutory time frame for liquidation for List 1, and quickly approaching that for List 2 and 3.
Importers need to take action to ensure their entries do not liquidate before a decision is reached by the USTR, lest they lose the opportunity to recoup duties paid.
For entries not yet Liquidated:
- Request an extension of the liquidation deadline, noting the pending exclusion as good cause why the extension should be granted. Then file a Post Summary Correction (PSC) no later than 15 days before the extended date of liquidation.
and/or
For entries within 180 days after Liquidation:
- File a protest within the 180 day period following liquidation, noting the pending product exclusion as the basis for the protest. Once a decision on the exclusion request is decided by the USTR, the exclusion information needs be submitted to CBP, as additional information.
CBP will postpone making determinations on protests that include a claim identify pending product exclusions, until the USTR makes a final determination on the product exclusion request.
If Section 301 goods were entered with antidumping duty (AD) or countervailing duty (CVD), or on an entry containing other goods which had AD or CVD, liquidation will already be suspended for the AD and CVD, and your immediate action will not be necessary.
Importers should contact their Livingston Service representative to request any applicable PSCs, Protests, or liquidation extensions be filed.
Background:
Section 301 additional duties apply to certain Chinese origin product, and were initiated due to China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation, which threaten the long-term competitiveness of the U.S.
CBP issued a Section 301 HTSUS Reference Guide showing affected tariffs under List 1, 2, and 3.
All Lists now impose a 25% additional duty, but List 3 imposed a 10% rate when entered and exported prior to May 10, 2019.
List 1 has had 6 rounds of exclusions granted to date, with just 1 round each approved for Lists 2 and 3.
Previously granted Section 301 exclusions include:
List 1 products:
- those granted on July 9, 2019 for 362 exclusion requests,
- those granted on June 4, 2019 for 464 exclusion requests,
- those granted on May 14, 2019 for 515 exclusion requests,
- those granted on April 18, 2019 for 348 exclusions requests,
- those granted on March 25, 2019 for 87 exclusion requests, and
- those granted on December 28, 2018, for nearly 1,000 exclusion requests.
List 2 Products:
- those granted on July 31, 2019 for 292 exclusion requests.
List 3 Products:
- those granted on August 7, 2019 for 15 exclusion requests.
Note: Approved exclusion requests are announced periodically.
If you have any questions regarding filing liquidation suspension requests for pending Section 301 exclusions, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs group at usregaffairs@livingstonintl.com