US trade Dispute with China
On October 1st, 2019, the Office of the US Trade Representative began the process of raising the additional tariff imposed on the first 3 groups of product import classifications from 25% to 30%.
At the same time, it announced that the additional tariff imposed on the 4th group announced in September 2019 would increase from 10% to 15%.
USTR Statement on Section 301 Tariff Action Regarding China
Section 301 Trade Remedies to be Assessed on Certain Products from 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.