New Additional Duties on Certain China Origin Products Effective July 6, 2018

The President of the United States has issued a statement announcing the United States will implement a 25 percent tariff on $50 billion of goods from China that contain industrially significant technologies. se additional duties are associated with a Section 301 investigation conducted by the U.S. Trade Representative (USTR).

Effective July 6, 2018, goods of Chinese origin falling under the tariff classifications listed within the USTR’s “list 1” of products will be subject to the application of the 25 percent additional duties upon entry into the U.S. Product list 1 may be viewed here.

The USTR has a second list of tariff classifications (“list 2”) that will undergo further review in a public notice and comment process, including a public hearing. After completion of this process, the USTR will issue a final determination on the products from this list that would also become subject to the additional duties. Product list 2 may be viewed here.

The USTR states it will soon provide an opportunity for the public to request the exclusion of particular products from the additional duties subject to this action. They state they will issue a notice in the Federal Register with details regarding this process within the next few weeks.

Importers of products that will be subject to the above additional duties should take steps to prepare, including:

  • Evaluate your immediate and potential duty exposure for the tariffs described above.
  • Ensure your Customs bond amount is adequate to cover the additional duty liability (U.S. Customs or your surety may mandate this).
  • Provide your Customs broker with clear instructions to ensure the compliant application of the additional duties on your Customs entries.
  • Make the necessary arrangements for your ability to pay the duties to Customs in association with your Customs entries (this may involve setting up a direct ACH account with Customs or specific arrangements with your broker).
  • Review for potential alternate sourcing of products from countries not subject to additional duties.
  • When it becomes available, apply for the exclusion of items from the additional duties if they meet the perquisites.
  • Confirm that any articles falling in the affected HTS provisions are correctly classified.

DHL Global Forwarding will be monitoring this topic and will communicate additional information as it becomes available. If you have any questions on the above, please contact your DHL Global Forwarding representative.

Statement from the President regarding implementation of Sec 301 duties::

USTR press release on 301 duties: