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To Claim Or Not To Claim: Which Imported Items Are Eligible for Duty Drawback under TFTEA (HR 644)?

To Claim Or Not To Claim: Which Imported Items Are Eligible for Duty Drawback under TFTEA (HR 644)?

As the U.S. implements the Section 301 duties on enumerated tariff numbers imported from China, many importers are currently assessing the impact of these duties on their operations. Importers should assess the capacity to utilize duty drawback to mitigate the impact of these tariffs. With the current fluctuation and updates to tariff laws, it is important to be aware of the latest 301 tariff lists in order to maximize your refund.

Which Imported Items Are Drawback Eligible?

Below is a general list of imported items from China that could be subject to 25% additional duty rate under Section 301 tariffs:

  • Air and gas compressors, which are used in various goods like refrigerators
  • Aircraft engines and engine parts
  • Aircraft tires
  • Ball bearings
  • Boat motors
  • Bulldozers, backhoes, tampers, boring machines, and other large construction vehicles
  • Cranes and other “lifting equipment”
  • Dairy milkers, chicken incubators, and other livestock equipment
  • DC and AC generators of various sizes and power levels
  • Electrical equipment such as resistors and circuit breakers
  • Electricity transformers
  • Electronic traffics signs
  • Imaging and navigational equipment
  • Industrial heating equipment
  • Industrial magnets
  • Industrial ovens and furnaces
  • Large vehicles using both diesel and non-diesel fuel
  • Lasers
  • LEDs
  • Lithium batteries and other batteries
  • Machinery for foods processing, including meat processing and fruit processing
  • Machinery for making paper cardboard and other paper products
  • Medical equipment such as X-rays and pacemakers
  • Oil and gas drilling platform parts
  • Parts of printers and copy machines
  • Parts for televisions, video-recording equipment, and similar video products
  • Plows, mowers, combine harvester-threshers, and other large agricultural vehicles
  • Machinery for making glass products, including lightbulbs
  • Machinery for making rubber or plastic goods
  • Machinery for processing and moulding metals or cement, and their parts
  • Microscopes and telescopes
  • Nuclear reactors
  • Radar and radio equipment
  • Scales, mostly for weighing large industrial equipment
  • Scientific equipment such as pressure gauges and spectrometers
  • Some cars and trucks, motorcycles, helicopters, airplanes, and spacecraft
  • Trains and rail parts

Which Imported Items Are NOT Drawback Eligible?

Below is a list of imported items under Section 232 tariffs that are NOT eligible for drawback under the Presidential proclamation from the White House. Please note that this could be subject to legal challenge. This applies to all countries except Armenia, Australia, Brazil, and South Korea:

  • Steel
    HTS Impacted: (Additional Duty Rate of 25% for all)

Click here for Base Metals and Articles of Base Metal — Chapter 72 HTS: Iron and Steel

    • 7206.10–7216.50
    • 7216.99–7301.10

Click here for Chapter 73 HTS: Articles of Iron or Steel

    • 7302.10
    • 7302.40–7302.40
    • 7304.10–7306.90
  • Aluminum
    HTS Impacted:

Click here for Chapter 76 HTS: Aluminum and Articles Thereof

    • 7601 (Additional Duty Rate of 10%)
    • 7604
    • 7605
    • 7606
    • 7607
    • 7608
    • 7609
    • 7616.99.5160
    • 7616.99.5170

The lists above provide only a general outline of which items are and which are not eligible for duty drawback. Making sense of the full scope of standards as laid out in the new Duty Drawback Simplification Law can be a challenge. Charter Brokerage’s duty drawback specialists are well versed in both core claims and those impacted by TFTEA.

If you have any questions regarding drawback eligibility, contact Charter Brokerage at inquiries@charterbrokerage.net and one of our drawback and trade experts will assist you in determining the availability of duty drawback for your specific operations.

 

Sources:

1) Harmonized Tariff Schedule (2018 HTSA Revision 11) HTS Search Tool, Retrieved from https://hts.usitc.gov/
2) 301 Investigations Lists, Retrieved from https://ustr.gov/sites/default/files/enforcement/301Investigations/List%201.pdf, https://ustr.gov/sites/default/files/enforcement/301Investigations/List%202.pdf, https://ustr.gov/sites/default/files/files/Press/Releases/301FRN.pdf