ITC Sets More Section 301 Exclusions, USMCA Provisions in Recent Revisions to 2020 HTS
The International Trade Commission recently issued several revisions to the Harmonized Tariff Schedule to implement new and amended Section 301 exclusions and complete its July 1 implementation of USMCA. Most recently, in Revision 17, issued July 28, the ITC implemented a new round of exclusions from list 4 Section 301 tariffs under U.S. Note 20(fff) to subchapter III of Chapter 99, and new subheading 9903.88.53 (see 2007210026). The ITC also amended tariff numbers listed for some exclusions in U.S. Note 20(ddd).
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That latest update came only four days after the ITC issued Revision 16 to the tariff schedule on July 23. The ITC implemented two notices from the Office of the U.S. Trade Representative amending exclusions from list one and list three Section 301 tariffs (see 2007140045). A third USTR notice implemented by the ITC apparently moved an exclusion for multi-phase electric motors from U.S. Note 20(x) for exclusions from list one tariffs to U.S. Note 20(y), which lists exclusions from list two Section 301 tariffs.
More extensive changes were made in Revision 15, issued July 13, many of which implement USMCA and were apparently omitted from the ITC’s mid-year update on July 1. Notes to subchapter II of Chapter 98 for articles exported returned after having been advanced or improved abroad were amended to provide for USMCA. Subchapter XXIII was added to Chapter 98 for USMCA-specific treatment for dairy, sugar and textiles and apparel.
Subheading 9802.00.80 was amended to provide for new “free” USMCA treatment for goods returned after assembly abroad in Mexico or Canada using U.S. components (see 2007220073). Subheading 9802.00.90 was renumbered 9802.00.91, and amended so that it excludes visible lining fabrics from the requirement that textile and apparel assembled in Mexico must be wholly formed and cut in the U.S. to qualify for the subheading.
Also in Revision 15, the ITC implemented more changes for exclusions from Section 301 tariffs. New subheading 9803.88.51 and U.S. Note 20(ddd) were created for a new exclusion on goods from the fourth list of Section 301 tariffs, as outlined in a July 10 USTR notice (see 2007090035). Likewise, new subheading 9838.52 and U.S. Note 20(eee) were created for extended exclusions from list one Section 301 tariffs announced in a USTR notice issued July 9 (see 2007080025).