The additional ad valorem duty provided for in HTSUS heading 9903.01.20 or 9903.01.24 applies in addition to all other applicable duties (including Section 301 duties), taxes, fees, exactions, and charges. Even if goods are subject to an exclusion from Section 301 duties, if they are classified in HTSUS heading 9903.01.20 or 9903.01.24, they are subject to the additional ad valorem duty provided for in HTSUS heading 9903.01.20 or 9903.01.24.
The additional ad valorem duty provided for in HTSUS heading 9903.01.20 or 9903.01.24 is assessed on consumption entries. TIB importations are not consumption entries, and therefore the additional ad valorem duty will not be assessed on goods that qualify for TIB entry. The bond for TIB entries, with limited exceptions, shall be in an amount equal to two times the estimated duties, including fees, determined at the time of entry per 19 C.F.R. § 10.31(f).
Informal entry is not permitted and formal entry is required for any merchandise that exceeds $250 in value and is classified in Subchapters III and IV of Chapter 99 of the HTSUS, including merchandise classified under HTSUS heading 9903.01.20 or 9903.02.24.
Articles that are products of China (including products of Hong Kong) that are described in headings 9903.01.21, 9903.01.22, or 9903.01.23, HTSUS, are not subject to the additional duty provided for in heading 9903.01.20 or 9903.01.24, HTSUS. Heading 9903.01.22 describes informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.
Goods properly classified under the following headings and subheadings of the HTSUS qualify for the exception under 9903.01.22:
- Chapter 49;
- Headings 3704, 3705, 3706, 5807, 8310 and 9701 through 9705, inclusive; and
- Subheadings 6307.90.30, 6307.90.85, 8523.80.10, 8523.29, 8523.41, 8523.49, 9405.61, and 9405.69.
Please refer to 50 U.S.C. 1702(b)(3), CSMS # 63988468, and CSMS # 64299816.
To be described by heading 9903.01.23, the goods have to be loaded onto a vessel at the port of loading in China or Hong Kong before February 1, or in transit on the final mode of transport prior to entry into the United States before February 1, and must meet the remaining conditions described in that heading, including the condition that the goods must be entered for consumption, or withdrawn from warehouse for consumption, prior to March 7, 2025.
Merchandise entered for immediate transportation shall be subject to the duty rates in effect when the immediate transportation entry was accepted at the port of original importation, subject to the requirements specified in 19 CFR 141.69(b):
Merchandise which is not subject to a quantitative or tariff-rate quota and which is covered by an entry for immediate transportation made at the port of original importation, if entered for consumption at the port designated by the consignee or his agent in such transportation entry without having been taken into custody by the port director for general order under section 490, Tariff Act of 1930, as amended (19 U.S.C. 1490), shall be subject to the rates in effect when the immediate transportation entry was accepted at the port of original importation.
If merchandise is entered for immediate transportation in accordance with 19 CFR 141.69(b) prior to February 4, 2025, then it is not subject to the additional ad valorem duty provided for in HTSUS subheading 9903.01.20.
Please review CSMS# 64018403 for the updated entry summary order of reporting. Please contact your Client Representative if you continue to experience errors with the entry summary.
Such articles will be subject, upon entry for consumption, to the duties imposed by the Executive Order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission into the United States foreign trade zone. Please refer to CSMS # 63988468 and CSMS # 63992482.
As provided in the Federal Register notices, 90 Fed. Reg. 9431 (Feb. 12, 2025) and 90 Fed. Reg. 11426 (March 6, 2025), the additional duties imposed by heading 9903.01.20 or 9903.01.24 shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule pursuant to applicable regulations of CBP, and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60. 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 (in China or Hong Kong), as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in China or Hong Kong), less the cost or value of such products of the United States, as described.
Goods of China or Hong Kong that are classifiable under other headings or subheadings of Chapter 98 are not subject to the additional duties under HTSUS heading 9903.01.20 or 9903.01.24, on the condition that such a heading or subheading is properly claimed in compliance with applicable regulations, and that CBP agrees with the claimed classification.
