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  5. CSMS 40330403
CSMS 40330403·Trade policy·October 21, 2019·View on csms.cbp.gov ↗

GUIDANCE: Section 301 Tranche 1 Eighth Round of Exclusions

Plain-English explanation

CSMS 40330403 is a U.S. Customs and Border Protection (CBP) Cargo Systems Messaging Service bulletin (trade policy), published on October 21, 2019. It carries the official CBP guidance brokers and importers must follow for the topic — "GUIDANCE: Section 301 Tranche 1 Eighth Round of Exclusions". CSMS messages are the operational layer between Commerce determinations and at-the-border collections: when Commerce publishes a new rate, scope ruling, or instruction, CBP turns it into a CSMS that ACE/ACS systems and brokers act on.

Message body

Full text as published by U.S. Customs and Border Protection

CSMS #40330403 - GUIDANCE: Section 301 Tranche 1 Eighth Round of Exclusions U.S. Customs and Border Protection sent this bulletin at 10/21/2019 04:49 PM EDT   Cargo Systems Messaging Service CSMS #40330403 - GUIDANCE: Section 301 Tranche 1 Eighth Round of Exclusions BACKGROUND On October 2, 2019, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 84 FR 52567 announcing the decision to grant the eighth round of certain exclusion requests from the 25 percent duty assessed under the Section 301 investigation related to goods from China ($ 34B Action - Tranche 1).  These product exclusions relate to the imposed additional duties announced in 83 FR 28710 on Chinese goods with an annual trade value of approximately $ 34 billion as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.  The product exclusions announced in this notice will retroactively apply as of the July 6, 2018 effective date of the $ 34 billion action (Tranche 1), and will extend for one year after the publication of 84 FR 52567 . The exclusions are available for any product that meets the description as set out in the Annex to Federal Register Notice 84 FR 52567 , 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.  For ease of reference, a link to the entire Federal Register Notice, which includes the Annex is embedded in this message.  The functionality for the acceptance of the eighth round of product exclusions for articles from China specific to Tranche 1 of Section 301 duties is available in the Automated Commercial Environment (ACE) as of October 8, 2019. GUIDANCE Instructions for importers, brokers, and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 84 FR 52567 are as follows: In addition to reporting the regular Chapters 84, 85, 88 and 90 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.19 (Articles the product of China, as provided for in U.S. note 20(x) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative) for imported merchandise subject to the exclusion. Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.19 is submitted. Paragraph “B” of the Annex to 84 FR 52567 corrects a previous exclusion round; U.S. note 20(q) to subchapter III of chapter 99 of the HTSUS (9903.88.14), deleting “Machine tool stands having leveling, stabilizing, attachment or other special features (described in statistical reporting number 8466.30.8000). Paragraph “C” of the Annex to 84 FR 52567 corrects a previous exclusion round; U.S. note 20(q) to subchapter III of chapter 99 of the HTSUS (9903.88.14), deleting “Granulating machines not specifically designated for use with specific particulate materials, each valued more than $ 25,000 (described in statistical reporting number 8479.89.9499). Paragraph “D” of the Annex to 84 FR 52567 corrects a previous exclusion round; U.S. note 20(q) to subchapter III of chapter 99 of the HTSUS (9903.88.14), deleting “Vertical or single shaft shredding machines of a kind suitable for use in the recycling industry, weighing over 10,000 kg but not over 15,000 kg each (described in statistical reporting number 8479.89.9499). Paragraph “E” of the Annex to 84 FR 52567 corrects a previous exclusion round; U.S. note 20(q) to subchapter III of chapter 99 of the HTSUS (9903.88.14), deleting “CB radio antennas (described in statistical reporting number 8529.10.9100).   ADDITIONAL INFORMATION Duty exclusions granted by the USTR as set out in 83 FR 28710 are retroactive for imports on or after the initial effective date of July 6, 2018.  To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe.  If the entry is beyond the PSC filing timeframe, importers may protest the liquidation. Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, they should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required). Imports which have been granted a product exclusion from the Section 301 measures, and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146. For ease of reference, a summary of Section 301 actions on Products of China are provided below.  Note the change in sequential numbering of product exclusions granted.  Product exclusion announcements will no longer be referenced in sequential order of overall Section 301 product exclusions.  Moving forward they will be identified in sequential order (round) specific to the Tranche it relates to. For more information related to the eighth round of products excluded specific to Tranche 1 of Section 301 duties for articles of China, please refer to 8 4 FR 52567 , issued October 2, 2019. Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative.  Questions related to Section 301 entry-filing requirements should be emailed to Traderemedy@cbp.dhs.gov . Related CSMS: 38840764, 19-000332- 19-000244, 19-000212, 19-000155, 19-000052, 38840764, 39169565, 39268267, 39473933, 39587690   Update your subscriptions, modify your password or e-mail address, or stop subscriptions at any time on your Subscriber Preferences Page . You will need to use your e-mail address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com . This service is provided to you at no charge by U.S. Customs and Border Protection . Privacy Policy | GovDelivery is providing this information on behalf of U.S. Department of Homeland Security, and may not use the information for any other purposes. Powered by Privacy Policy | Cookie Statement | Help

Frequently asked questions

What is CSMS 40330403?

CSMS 40330403 is a U.S. Customs and Border Protection (CBP) Cargo Systems Messaging Service bulletin titled "GUIDANCE: Section 301 Tranche 1 Eighth Round of Exclusions". CSMS bulletins are the operational instructions CBP issues to brokers, importers, and ACE filers covering rate changes, system updates, scope guidance, and other day-to-day customs-operations changes.

When was CSMS 40330403 published?

CBP published CSMS 40330403 on October 21, 2019. The bulletin's instructions are typically operative as of the publication date unless the body specifies a different effective date.

Is the CBP CSMS the legally binding instruction?

Yes — for at-the-border filing and entry collection. CSMS messages translate Commerce's Federal Register determinations into operational CBP instructions that ACE/ACS systems and brokers execute. The Federal Register notice is the underlying legal authority; the CSMS is the operational implementation. Both should be read together when reconciling a rate or scope change.

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