Most Recent Update on Section 301 List 3 Tariffs

Following up with the blog on Section 301. May 8th the USTR published in the Federal Register the formal notice to increase the additional tariffs on List 3 products. The Notice reads:

“Effective with respect to goods (i) entered for consumption, or withdrawn from warehouse for  consumption, on or after 12:01 a.m. eastern daylight time on May 10, 2019, and (ii) exported to the United States on or after May 10, 2019, subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified …”

Due to the confusion the language creates, the afternoon of May 9th, Customs and Border Protection (“CBP”) held an ACE Trade Call where representatives from CBP Trade Remedy team clarified that the increased tariff only applies to goods exported on or after May 10, 2019. Because ACE does not currently have a duty rate/tariff classification tied to export dates, importers who have Chinese origin goods subject to List 3 Section 301 tariffs can choose to do one of the following:

  • File the entry summary and pay 25%, then apply for a Post Summary Collection (“PSC”) to then possibly collect a refund; or
  • Do not file entry summary immediately (under CBP regulations, importers can file entry summaries within 10 business days after the time of entry), hopefully within this period, CBP has promulgated a clear filing instruction by which the importers can file entry summary using 10% tariff.

This topic is evolving, and we will keep close watch on this. If you have any questions regarding how to legally avoid paying Section 301 tariff, please feel free to contact us.


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