It's Official: China Tariffs Increased

Outline of china filled in with its flag.
arrow Go back

It's Official: China Tariffs Increased

Author: sales@jsconnor.com

10-May-19

It's Official: China Tariffs Increased

It's official. Yesterday the U.S. Trade Representative announced through a Federal Register notice that the $200 billion of Chinese goods now subject to 10% duties will be raised to 25% effective today.

This came as U.S. trade negotiators were meeting with a high level Chinese delegation in Washington to try to make progress on issues. There is some speculation that the increased tariffs may impact the negotiations but it is not clear now whether it will be positive or negative. Hopefully, the parties will continue to work toward a quick resolution but as most know this has been difficult to predict.

Please see the following Guidance from CBP: "The increase in additional import duties for Chinese goods covered by the September 21, 2018 Federal Register notice, as amended, is now effective on May 10, 2019. Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States on or after May 10, 2019, the rate of additional duties on imported articles classified in a subheading covered by the September 21, 2018 Federal Register notice, as amended, will be 25 percent ad valorem.

For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States on or after May 10, 2019, report the following HTS numbers and duty rates:

HTS: 9903.88.03 and 9903.88.04

Duty Rate: 25 percent

For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and before June 1, 2019, and exported to the United States before May 10, 2019, report the following HTS number and duty rate:

HTS: 9903.88.09

Duty Rate: 10 percent

The subject imports of China that are entered into the United States on or after June 1, 2019 are subject to the 25 percent rate of additional duty under HTS 9903.88.03 and 9903.88.04.

The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export."

It is also expected that before the end of the month there will be a process announced by which importers can seek exclusions from the new increase and it is expected the criteria will be similar or the same as for the previous duty increases for List 1 and List 2 products which included:

  1. product only available from China
  2. the imposition of additional duties would cause severe economic harm to the importer or other U.S. interests.
  3. the product is strategically important or related to the "Made in China 2025" policy.

We will continue to monitor this and keep you advised of further developments. We are preparing reports and information to clarify how this change will impact our clients to process new entries. Please let us know if you need any assistance.