U.S. Trade Representative Grants China 301 Exclusions for Reading Glasses
The U.S. Trade Representative (USTR) will be publishing notice that it is granting an exclusion from the China 301 duties for reading glasses classifiable in subheading 9004.90.0000 of the Harmonized Tariff Schedule (HTS) of the United States. Specifically, the exclusion will cover “non-prescription spectacles, other than sunglasses (described in statistical reporting number 9004.90.0000).”
The exclusion will be applied retroactively to September 1, 2019, the date that non-prescription reading glasses were first assessed for China 301 duties. The exclusion, however, expires on September 1, 2020, at which time the China 301 duties will revert. If the opportunity to seek an extension of the exclusion is made available at that time, The Vision Council will provide further information in a future alert.
The USTR’s decision to provide an exclusion for “non-prescription spectacles, other than sunglasses” applies to all like products classified under subheading 9004.90.0000 HTS. It is not limited to the products of the companies whose exclusion requests were granted and it also includes like products of companies who had exclusion requests for reading glasses denied.
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 301 duties. Your Customs broker can advise you when entries of reading glasses can be made without having to pay the China 301 duties. Until ACE is updated, you will need to deposit the China 301 duties and then make a claim for a refund.
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. If they are unhelpful or you have other questions on the refund process, please feel free to contact The Vision Council.
Furthermore, the China 301 exclusion on “non-prescription spectacles, other than sunglasses” only covers the payment of the China 301 duties. Other relevant duties, taxes and fees that might have been assessed on your entry will remain including the 2.5 percent “ordinary” Customs duties on non-prescription reading glasses.
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.