Update on 25% China Retaliatory Tariff
As previously reported, the 25% China retaliatory tariff slated for January 1, 2019 has been postponed until March 1, 2019. The U.S. Trade Representative has published their official notification in the Federal Register. CBP has sent out the latest update to the 2019 Harmonized Tariff Schedule to allow for the 90 day extension of Chinese goods that would have been subject to the additional 25% tariff. Unless an [...]Read More
25% China Retaliatory Tariff Delay
The National Customs Brokers and Forwarders Association of America (NCBFAA) published the following news article. We want to share it with you so that you are aware of the situation and to make clear the timeline for the 90-day extension announced by the White House on December 1. Until the U.S. Trade Representative publishes the official notice in the Federal Register, we will be unable to pre-clear goods arriving in 2019. We will contin [...]Read More
Does My Shipment Require an Export License?
One of the biggest hurdles an exporter faces is to determine if the product they are shipping requires a license. As the exporter, it is your responsibility to know your customer - the party to whom you are selling your product!
Supplement 3 to Part 732 of the Export Administration Regulations (EAR) is a "Know Your Customer" guide from the Bureau of Industry & Security (BIS). B [...]
Next Round of Section 301 Tariffs
President Trump’s next round of Section 301 tariffs, up to 25% from the original 10%, is slated for goods entered on or after January 1, 2019. Most of the Chinese suppliers and producers have ramped up production and are scrambling to load their cargo with the hopes that shipments will arrive to the U.S. before the target date. As it stands, the Chinese market for freight space is very tight. Cargo destined for the East Coast has an est [...]
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