On July 6, 2018, tariffs against imported Chinese products took effect. The 25% duty that is assessed is based on country of origin not the country of export and apply 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 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 firstname.lastname@example.org or fill out our online contact form. You can also speak to our of our representatives at 815.573.0155.