Logistics News and Updates
US trade Dispute with China
In September 2018, the US levied an additional 10% duty on that 3rd group of products and stated its intent to raise this additional duty to 25% at a future date. The US twice postponed the increase, but raised it today, May 10th, 2019.
Please note that, due to the transit time from ports in China to ports on the west coast of the US, there may be a 10 -14 day window for another postponement or a trade agreement before any goods that were already in transit are affected by this latest duty increase. Furthermore, the US has indicated that it is considering an additional 25% duty on a 4th group of product import classifications manufactured in China.
Pursuant to Section 301 of the Trade Act of 1974, as part of a continuing trade dispute with China, the United States last year levied higher customs duties on certain imports from China containing what it referred to as “industrially significant technologies”.
In June 2018, the US announced an additional 25% duty levied on an initial list of product import classifications. This was followed in August 2018 by an announcement of an additional 25% duty on a 2nd list of product import classifications. Lastly, in September 2018 an additional 10% duty was levied on a 3rd group of product import classifications with the stated intent to raise it to 25% at a future date, finally raising it to 25% on this 3rd group of products in May 2019. The levies on these three groups of products are assessed only on those products made in China, not on those products made elsewhere and exporting from China. The current list of the affected product classifications can be found here.
What can US importers do?
The number of product classifications affected by the Section 301 tariffs, the tariff costs involved, and the rules governing their application means that US importers should seek professional legal and accountancy advise when conducting regular import trade operations from China. The risks to the logistics flows (material, information, and cash) are too great not to consider. The Office of the US Trade Representative maintains a website here with useful information regarding the new tariffs and the process to seek exclusions from the additional tariffs on specific goods.
Mercury has a staff of highly experienced logistics/supply chain professionals and utilizes a global network of logistics agents, including China. We are prepared to assist you with all your logistics and supply chain needs. Please contact us if you have any questions. Thank you.
NOTE: Mercury is not a customs broker, law or accounting firm, and we do not offer legal or accountancy advice. Any information provided here is for informational purposes only and not a substitute for professional legal and/or accountancy advice.