This error is returned from Amazon under the following circumstances: You are listing against an existing ASIN, and Amazon has restricted marketplace sellers from selling against this ASIN with particular product conditions. For example, Amazon is only permitting listing against the ASIN for used items but the item you are selling is a new item.
To solve this problem, be sure that the SKU you are listing has a condition that is allowed for the ASIN and product type. You can check the allowed conditions for a specific ASIN by searching the ASIN in Amazon's "List a new product" tool and viewing the listing limitations.
To determine what conditions are permitted for your SKU's product type, first check what the Amazon Product Type is for your SKU. You can do this by clicking on the SKU in your Catalog, selecting Catalog, and finding the Categorization card that includes the Amazon Product Type. Then see what conditions are allowed by Amazon for that type.