Benesch Friedlander Coplan & Aronoff
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Valuable tariff relief is now available for goods imported from China into the United States. On March 23, 2022, the United States Trade Representative (“USTR”) issued Federal Register Notice 87 FR 17380 retroactively reinstating certain United States Section 301 tariff exclusions on goods from China pursuant to United States Commerce Act of 1974 (19 USC 2411). The exclusions apply to a wide range of products, including chemicals, machinery, electrical equipment, plastics, motors and automotive products, textiles, furniture, pumps, bicycles and a myriad of other consumer goods. A complete list of exclusions can be found in the appendix to the Federal Register notice. Although broad in scope, the reinstated exclusions represent only a small subset of the 549 in place since 2018.
Tariff exclusions have a different retroactive scope for unliquidated goods and liquidated goods. For non-liquidated goods, exclusions apply to items entered for consumption or removed from warehouse for consumption at or after 12:01 a.m. Eastern Daylight Time on October 12, 2021 and before 11:59 p.m. East, December 31, 2022. For liquidated goods, exclusions apply during the 180-day protest period prohibited by the US Tariff Act of 1930 (19 USC 1514).
U.S. Customs and Border Protection has issued guidance stating that Harmonized Tariff Classification United States (“HTSUS”) 9903.88.67 can be used to claim reinstated exclusions (CSMS #514629298). As of April 7, 2022, functionality to accept reinstated products is available in the Automated Commerce Environment (“ACE”). Importers, brokers and filers can find instructions on submitting entries and modifying their filings in 87 FR 17380 Appendix A in addition to reporting regular chapters. Importers can request a refund of duties paid on previous imports of goods by filing a post-summary correction and can find additional guidance in CSMS #42566154. As a reminder, the new exclusions apply in addition to 81 other exclusions applicable to products necessary to fight the COVID-19 pandemic (86 FR 63438). These 81 additional exclusions apply until May 31, 2022.
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