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U.S. additional customs duties effective 6 July, Chinese goods

U.S. additional customs duties effective 6 July

U.S. Customs and Border Protection today issued a release concerning the additional import duties for certain Chinese goods under the “Section 301” action. The additional duties will be effective with respect to goods entered, or withdrawn from warehouse for consumption on or after 6 July 2018.

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Related content

Read CSMS 18-000409 (28 June 2018)

 

The U.S. Trade Representative (USTR) previously issued a final list of products (PDF 2.3 MB) covered by the Section 301 action, with the imports represented by their eight digit Harmonized Tariff Schedule of the United States (HTSUS) subheadings. The list comprises over 800 eight-digit HTSUS numbers. Read TradeNewsFlash

According to today’s CBP release, any article classified in a subheading covered by this list that is a product of China would be subject to a 25% ad valorem duty rate, in addition to the general (Column 1) rate of duty for that particular subheading.

In addition to reporting the Chapters 1-97 HTSUS classification of the imported merchandise, importers also must report the 9903.88.01 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Section 301 trade remedy, as follows:

 

9903.88.01: 25% ad valorem additional duty for articles the product of China

 

The Section 301 duties currently only apply to products of China, and are based on the country of origin, not country of export. 

CBP today further explained that:

  • The rates of duty imposed by subheading 9903.88.01 will not apply to products for which entry is properly claimed under a heading or subheading in Chapter 98. 
  • Products from China subject to the Section 301 trade remedy that are eligible for special tariff treatment under General Note 3(c)(i) to the HTSUS will be subject to the additional 25% ad valorem rate of duty imposed by heading 9903.88.01.  
  • Any product listed in the USTR release except any product that is eligible for admission under ‘”domestic status” subject to the additional duty imposed and that is admitted into a U.S. foreign trade zone on or after 6 July 2018, only may be admitted as “privileged foreign status.” These products will be subject upon entry for consumption to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading. 
  • The USTR will establish a process by which U.S. stakeholders may request that particular products classified within an HTSUS subheading listed in Annex A be excluded from the additional Section 301 duties. USTR will publish a separate notice concerning the product exclusion process, and CBP will provide additional guidance on the matter as it becomes available.

 

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich

Partner, Global Practice Leader

T: 312-665-1022

E: dzuvich@kpmg.com

 

Andy Siciliano

Partner, National Practice Leader

T: 631-425-6057

E: asiciliano@kpmg.com

 

Irina Vaysfeld

Principal

T: 212-872-2973

E: ivaysfeld@kpmg.com

 

Robert Waldrop

Principal

T: 212-954-8117 

E: rwaldrop@kpmg.com

 

Christopher Young

Principal

T: 312-665-3229

E: christopheryoung@kpmg.com

 

George Zaharatos

Principal

T: 404-222-3292

E: gzaharatos@kpmg.com

John L. McLoughlin

Principal, East Coast Leader

T: 267-256-2614

E: jlmcloughlin@kpmg.com

 

Luis (Lou) Abad

Principal, WNT

T: 212-954-3094

E: labad@kpmg.com

 

Amie Ahanchian

Managing Director

T: 202-533-3247

E: aahanchian@kpmg.com

 

Gisele Belotto

Managing Director

T: 305-913-2779

E: gbelotto@kpmg.com

 

Andy Doornaert

Managing Director

T: 313-230-3080

E: adoornaert@kpmg.com

 

Jessica Libby

Managing Director

T: 612-305-5533

E: jlibby@kpmg.com

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