I’ve been told if I change the description of my goods I can lower my duty cost. Is that okay?
It depends. You certainly should not simply change the description of your goods on the invoice from your supplier just to get a lower duty rate. However, if you truly feel the new or ‘changed’ description accurately represents your product, then you certainly have a justified case to make the change. Customs is not interested in having you pay the highest duty rate possible. They are interested, and very serious, that you use the correct HTS [...]Read More
Changes to Generalized System of Preferences (GSP)
Presidential Proclamation 9813 issued on October 30, 2018 has made changes to almost 100 products from over 20 countries. Effective today, November 1, 2018 dozens of products have been removed from eligibility for preferential duty treatment under the GSP – Generalized System of Preferences. The Federal Register outlines all these changes. Cargo Systems Messaging Service (CSMS) message #18-00648 has just been posted advising us of the Harmon [...]Read More
I have a question I think is pretty simple and I have the logical answer. Should I assume my answer is right?
NO. NO. And NO. In general, the answers to seemingly simple questions involving any governmental, regulatory agency are not always logical or clear-cut. In particular, the answers to questions involving Customs issues are often not logical using normal business principles nor in line with industry standards. You should never assume that what seems to be a common sense answer to any question involving the import (or export) process is correct. [...]Read More
Has your company been impacted by the recently imposed Section 301 Tariffs? For those commodities affected, do you later export that product from the US to another country? If so, have you considered the Duty Drawback Program? You might be eligible to recover 99% of the original assessed duty as well as the Section 301 additional duties. What is Drawback? Drawback is the refund of Customs duties, certain Internal Revenue taxes, and certai [...]Read More
Additional Section 301 Tariffs effective September 24, 2018 with increase on January 1, 2019
As previously reported, the Trump administration had identified a ‘third list’ of some $200 billion worth of imported Chinese goods as the focus of a proposed additional 10% duty. Later, the White House was considering whether to increase tariffs on that same list from 10% to 25%. Yesterday, September 17, 2018, the U.S. Trade Representative announced that he will indeed increase those tariffs to 25% but incrementally. The latest tranche (L [...]Read More
Merchandise Processing Fees (MPF) – Minimums and Maximums to Increase Effective October 1, 2018
The merchandise processing fee ad valorem is being adjusted for inflation and will increase on October 1, 2018. According to CSMS 18-000465, the minimum MPF will increase from $25.67 to $26.22. The maximum MPF will be increase from $497.99 to $508.70. The MPF for informal entries will increase from $2.05 to $2.10. The MPF rate of 0.3464% will not increase at this time. [...]Read More
China Section 301 – “List 2” Additional 25% duty effective August 23, 2018 U.S. Trade Representative amends HTSUS provisions – Exemption on U.S. Goods Returned under Section 301
As previously reported, tariff sanctions issued for imported Chinese goods go into effect on August 23, 2018. The USTR has released the final list of the second tranche of 279 products, down from 284 as originally reported last month. The Federal Register Notice dated July 11, 2018 contains procedures to request product exclusion from the Section 301 action. In addition, we want to report on the latest development related to the Section 301 [...]Read More
Increase in Trade War Tariffs
This week, President Trump directed U.S. Trade Representative Robert Lighthizer to consider raising the proposed tariffs from 10 percent to 25 percent on an additional $200 billion worth of Chinese goods. The 25 percent would apply to the proposed list of items previously announced on July 10. As to the further action proposed under Section 301 of the Trade Act of 1974, yesterday USTR Lighthizer released a statement saying “the increase in t [...]Read More
Additional Section 301 Tariffs Proposed
A third list of approximately 6,031 HTSUS tariff items, with a trade value of approximately $200 billion, has been identified by the Trump administration to be the focus of a proposed additional ten percent duty when imported from China. The implementation date for the increase has not been publicized. However, the Office of the U.S. Trade Representative is seeking public written comment by August 17, 2018 and a public hearing will be held in [...]Read More
I am interested in importing or sourcing a new product from overseas. What should I do?
To make the most informed decision possible, there are several things to do before you decide to purchase anything overseas. Some may have a dramatic impact on your costs and a direct impact on your bottom line. Whether you are just considering importing for the first time or you are an experienced importer considering a new product, you should consult with an experienced Customs broker (CHB). For first time importers: the import process is no [...]Read More