In a Federal Register notice published August 16th, the US Trade Representative has announced that the additional 25% duties imposed under the Chinese 301 tariffs List 1 (effective 7/6/18) and List 2 (effective 8/23/18) do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under subheadings 9802.00.40, 9802.00.50 (articles returned after being exported for repairs and alterations), 9802.00.60 (articles returned after further processing abroad), and heading 9802.00.80 (articles assembled abroad with US components).
For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable subheading.
For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80. These goods were previously exempt from the 25% duties.
This change goes into effect 8/23/18.
Please contact Vandegrift with any questions regarding the application of these provisions.