On July 6, 2018, tariffs against imported Chinese products took effect. The 25% duty that is assessed is based on the country of origin not the country of export and applies only to Chinese products. The tariffs range across industries and include aerospace, technology, robotics and machinery. There were two lists published on June 15, 2018. The first list added 818 tariff lines valued at $34 billion worth of imports to the Section 301 tariffs. The second list, expected to go into effect later this summer, is expected to add 284 product lines worth $16 billion.
Decreasing Additional Duty Expenses for Imported Goods
Consultation with your Customs Broker is essential to understand if any of your imported products are subject to the tariffs from the July 6th list or the second list expected to become effective this summer. The following steps will assist in determining to follow up actions to mitigate the additional duty expense for your imported products that are subject to the new tariffs.
- Identify your imported products by HTS (Harmonized Tariff Schedule) number and Chinese country of origin and identify if any of your imported products are subject to increased tariffs.
- Execute a sourcing strategy to determine additional or replacement suppliers to mitigate the additional product expense.
- Work with your Customs Broker to determine if an exclusion request should be made to the Federal Register.
- Review the second list proposed for Section 301 tariffs and provide comments to the United States Trade Representative (USTR) before final publication. After an initial review, the USTR removed 515 tariff items from its original list of 1,333.
- If you are using a Free Trade Zone for manufacturing review the application of the tariff to “non-privileged” parts and materials. Currently, even substantial transformation to manufacture a product may still be subject to the tariff.
- Set up a communication channel with your Customs Broker to review and consult on updates and new guidelines on the imposed tariffs.
Contact Rockfarm Today for Customs Brokerage Consultation
For further consultation within Rockfarm please reach out to John Yarwood, President of Rockfarm’s International Services at email@example.com or fill out our online contact form. You can also speak to one of our representatives at 815.573.0155.
By Brad Stewart
Brad’s journey into logistics began as a Marine Officer and transitioned from the LTL docks to the non-asset side within the logistics service provider arena. As a co-founder of Rockfarm, Brad drives our business development efforts and delivery of our promise. An Arizona native, Brad enjoys spending time outdoors in his home state with his wife and family.
“Our approach to the market allowed us an opportunity to push forward in 2008 and enable our mission, “lower the cost to serve” to stand as a cornerstone to our company today.”