Update 06/03/2019:

Update: Recently announced by CBP, on May 31, 2019, the U.S. Trade Representative’s Office (USTR) announced that they intend to publish a notice in the Federal Register this week that extends the amount of time for importers to enter certain goods exported from China before the goods will be subject to an additional tariff increase from 10 percent to 25 percent. Note that this change only affects exports made PRIOR to May 10.

With this change, covered products that were exported from China to the United States prior to May 10, 2019 will remain subject to an additional 10 percent tariff if they enter for consumption into the U.S. before June 15, 2019. Originally, the deadline to enter the U.S. before the goods would be subject to an additional 25 percent tariff was June 1, 2019.

As of today, U.S. Customs and Border Protection has not yet updated the Automated Commercial Environment to reflect this change. We are monitoring all open files that could be affected to ensure the new delayed timing of the is increase is considered when filing the entry summary.

If necessary, importers who file entry summaries that then retroactively become subject to a lower duty rate, may refile the entry summary (if the entry summary is still in trade control) or file a Post Summary Correction with the appropriate duty rate (if the entry summary is in CBP control).

CBP will issue updated guidance when CBP updates ACE to reflect the change announced by USTR.

Please contact your V. Alexander account team with any questions you may have.

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Update 05/13/2019:

In our last update on May 9, we advised that CBP had issued clarification stating that List 3 products exported from China to the United States prior to May 10, 2019 will be eligible for the 10% duty rate, and List 3 products exported on or after this date will be subject to the increased 25% duty rate.

On May 10, the USTR and CBP released additional parameters under note CSMS #19-000238, which states: “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”.

The most recent CBP notice can be found here.

To recap, List 3 products exported from China to the United States prior to May 10, 2019 AND entered into the United States before June 1, 2019 are not subject to the increased 25% duty rate.

However, even if List 3 products departed China prior to May 10, 2019, the increased 25% duty rate will still apply if the goods are not entered into the United States before June 1, 2019.

Please contact your V. Alexander account team with any questions related to this latest announcement.

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UPDATE: The Date of Export (Not the Date of Import) will determine the Increase in Section 301 Duties for List 3 Goods

05/09/2019

Today, the United States Trade Representative (USTR) issued the official version of the notice advising the Trade of an increase in duties from 10% to 25% for goods listed in the third list of products from China. The wording of this notice created much confusion in the Trade as to the actual date of implementation. In a conference call with CBP today, they confirmed that the increase applies to goods exported from China on or after May 10, 2019. This is very different than how this has been done in the past, when the date of import was the determining factor.

This is good news for importers as there is now additional time for the U.S. and China to reach an agreement before the increased duties take effect.

The clarification provided today confirms that goods exported from China prior to May 10, 2019 will remain subject to the 10% duty rate, and goods exported on or after May 10, 2019 will be subject to the 25% duty rate.

If you have any questions, please contact your V. Alexander account team.

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05/08/2019

As announced this morning by the National Customs Brokers and Forwarders Association of America, on May 9, 2019 the U.S Trade Representative (USTR) will publish a modification to the Section 301 tariff. This modification will increase the duty rate on the third list of products (List 3) from 10% to 25%. According to the notice, these changes are scheduled to take effect at 12:01 AM on May 10, 2019.

U.S. Customs and Border Protection (CBP) has updated the ABI to include these changes for any entries scheduled from May 10 and onward. This modification is a result of what the USTR calls a “lack of progress in the additional rounds of negotiations [with China] since March 2019” and after a May 5 tweet from President Trump where he states that “the Trade Deal with China continues, but too slowly, as they attempt to renegotiate.”

A copy of the notice to be published tomorrow can be found here, and the list of affected products can be found here.

V. Alexander & Co., Inc. will continue to monitor this situation and advise any updates as they become available.

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05/04/2019

President Trump says tariffs on $200 billion of Chinese goods will increase to 25% on Friday

President Trump said on Sunday that tariffs on $200 billion of Chinese goods will increase to 25% this coming Friday, despite repeated claims by the administration in recent weeks that trade talks with Beijing were going well.

The tariff rate on these goods was originally set at 10% last year. Trump had initially threatened to increase the tariffs earlier this this year, but postponed that decision after China and the U.S. agreed to sit down for trade talks.

In addition, Trump threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.”

The President said that trade talks with China are continuing, but are moving too slowly as Beijing tries to re-negotiate.

China says it’s still preparing for US trade talks — but won’t give details after the new Trump threats.

V. Alexander will continue to monitor this changing situation.