New China 301 Exclusion Denials and Refund Process for Spectacle Frames

After providing relief to the spectacle frame industry yesterday, June 9, the U.S. Trade Representative (USTR) began denying exclusion requests filed by companies, including The Vision Council, for plano sunglasses, over-the-counter reading glasses, and prescription lenses. The USTR has not yet acted on all open applications for exclusions for these products. Therefore, the possibility still exists that one or more of these applications could be granted, in which case all products classified in the excluded tariff provision would benefit.

The Vision Council will continue to monitor this situation and notify members if any remaining applications are successful. In the meantime, sunglasses, readers, and lenses remain subject to the China 301 tariffs if the product originates in China.

Additional Information on China 301 Refund Process for Spectacle Frames

The Vision Council received various questions regarding the refund process for spectacle frames from China and has provided further information, below. At this time, The Vision Council advises all members to reach out to their Customs broker as soon as possible to coordinate refund efforts.

For those who also applied for an exclusion for spectacle frames but received a denial determination from the U.S. Trade Representative (USTR), do not be alarmed. The USTR grants exclusion requests on a product specific basis, therefore, you still benefit from a product exclusion granted for a similar product. Thus, USTR’s decision to provide exclusions for spectacle frames of plastic under 9003.11.0000 HTS or spectacle frames of other materials under 9003.19.0000 HTS applies to all spectacle frames entered under those provisions.

Additionally, the exclusion ends on September 1, 2020. Chinese frames imported into the U.S. on or after that day will be subject to the additional China 301 duty. The Vision Council advises companies keep this in mind as they forecast future frame purchases. Notably, do not plan for the exclusion to be renewed beyond that date.

Before an importer can start benefitting from the granting of an exclusion on future shipments, U.S. Customs and Border Protection creates the functionality within its Automated Commercial Environment (ACE) system to process these new shipments without the additional China duties. Based on past knowledge, Customs takes around five business days to update its ACE system. Customs brokers are able to advise when entries of spectacle frames can be made without having to pay the China 301 duties.

On past shipments where China 301 duties were paid, a shipment’s status as either a liquidated or unliquidated Customs entry will trigger the relevant refund process and timetable. Unliquidated entries can be refunded using the post summary correction method. If the entry has liquidated or is unliquidated but has fifteen or fewer days before liquidation will occur, then the importer of record will need to file an administrative protest within 180 days of the liquidation date. Contact your Customs broker to coordinate your refund efforts.

Furthermore, the China 301 exclusion on spectacle frames only covers the payment of the China 301 duties. Other relevant duties, taxes and fees that might have been assessed on your entry remain, including the 2.5 percent “ordinary” Customs duties on plastic spectacle frames.

Any questions about this issue can be directed to Rick Van Arnam, The Vision Council’s regulatory affairs counsel, at rvanarnam@barnesrichardson.com, or to Michael Vitale, The Visions Council’s Senior Technical Director and Lens, Lab and Lens Processing & Technology Division Liaison, at mvitale@thevisioncouncil.org.