USMCA High Tech Goods From China Remain Subject to Section 301 Tariffs, CBP Says
High tech goods from China that are eligible for USMCA treatment remain subject to applicable Section 301 tariffs, CBP said in a Sept. 11 ruling. The ruling is a follow-up to a ruling in August that addressed a question of whether goods that originate in China and imported from Mexico are eligible for USMCA treatment (see 2008110037). While CBP in the previous ruling said that such goods are eligible for USMCA treatment, the agency didn't say then whether the Section 301 tariffs would apply.
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The goods are eligible for USMCA tariff treatment, “[h]owever, because no processing occurs in Mexico other than sorting, picking, packing, and shipping services, the goods remain products of China,” CBP said. “The additional duties under Section 301 are applicable on all the goods at issue, except those classified under subheading 8517.62.00, HTSUS, which is not currently listed in U.S. Note 20 of Subchapter III, Chapter 99, HTSUS.”