On Friday, President Trump called off Section 301 tariff increases on Chinese goods that were to be implemented on Tuesday, October 15th. The planned tariff hike, from 25% to 30%, was on lists 1, 2, and 3. The announcement came after Chinese and American negotiators made progress on sticking points regarding intellectual property rights, financial services, technology transfers, and agricultural sales.
The President indicated that the deal would take weeks to write, but it could be signed as soon as the Asia-Pacific Economic Cooperation meeting on November 16th or 17th. The President has not yet decided if the December 15th tariff increases on list 4b will proceed, but he said he expects to continue the next phase of negotiations immediately after the first deal is signed.
Meanwhile, US Customs and Border Protection gave guidance via CSMS #40208881 on filing procedures for Section 301 exclusions recently granted from list 2. When the entries for these goods are filed, HTSUS classification 9902.88.20 (i.e., “Articles the product of China…, each covered by an exclusion…”) should accompany the correct HTSUS classification. However, the Chapter 99 HTS number for the Section 301 duties should not accompany goods falling under this exclusion for list 2; instead, these goods should only include the 9902.88.20 classification. Importers should request refunds by submitting a post-summary correction. If the entry has already liquidated, then importers should protest the liquidation.
Deringer will continue to report on Section 301 developments. If you have questions regarding your shipment, please contact Deringer’s Compliance Department.