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Steel News August 12, 2019 03:30:04 AM

Protecting Refunds for Section 232 and Section 301 Excluded Products

Paul Ploumis
ScrapMonster Author
When an exclusion request is pending and the liquidation date of an entry is approaching, importers can request an extension of the liquidation date, and file a PSC within 15 days prior to the new liquidation date once an exclusion is issued.
Protecting Refunds for Section 232 and Section 301 Excluded Products

SEATTLE (Scrap Monster): Numerous products subject to additional duties under Section 232 (basic steel and aluminum products from many countries) and Section 301 (China) have been and continue to be covered by exclusion requests filed with the Commerce Department (Section 232) or the USTR (Section 301). Filings in a new round of Section 301 exclusion requests opened June 30 and extend to September 30, 2019 (List 3 products). Products which have been or may be covered by exclusion requests include the basic steel mill products under Section 232 and the many Section 301 products from China, including a wide range of ferrous and steel products such as ferroalloys, DRI and pellets in HTS 7202-7204, certain angles, shapes and sections in HTS 7216 and 7301, fittings in HTS 7307, buildings and parts in 7308, and multiple steel products including cloth, grill, netting, fencing, chain, and fasteners in HTS 7309-7318.

Exclusion requests that are granted are given retroactive effect, to dates determined by the particular remedy and/or by the date of a request. As the exclusion process can take an extensive period of time for many products, exclusions may be granted well after a date of entry. Section 232 or Section 301 duties will therefore have been paid at the time of entry of these goods. U. S. Customs and Border Protection (CBP) has provided Guidance on how refunds of these duties can be secured once an exclusion has been granted.

Although Section 232 exclusions are specific to a particular importer and quantity as well as product, and Section 301 exclusions apply to all goods covered by the terms of the exclusion regardless of importer, the process for claiming refunds is similar. Once an exclusion has been granted, the importer can file a Post Summary Correction (PSC) in ACE for any entry that has not been liquidated and is not within 15 days of liquidation. For entries that have been liquidated, a Protest can be filed within 180 days of the liquidation date. Once the Protest period has passed for any entry without a Protest being filed no refunds can be issued.

The primary difference for claims for Section 232 refunds and Section 301 refunds is that the Section 232 refunds must identify a specific exclusion, by number, and the importer must have previously advised CBP of that exclusion. Section 301 requests need only identify the excluded product as identified in the applicable Federal Register Notice.

When an exclusion request is pending and the liquidation date of an entry is approaching, importers can request an extension of the liquidation date, and file a PSC within 15 days prior to the new liquidation date once an exclusion is issued. If an entry has already liquidated, a Protest can be filed within the 180 day time period after liquidation. CBP will delay action on the Protest pending the decision on the exclusion request. If the request is granted, the importer can file a Protest amendment with the necessary exclusion information.

Courtesy: AIIS