Yesterday, May 9, 2019, U.S. Customs and Border Protection (“CBP”) clarified that the Section 301 tariffs apply only to merchandise exported on or after May 10, 2019. Today, May 10, 2019, CBP provided updated guidance of the following (CSMS #19-000238):
- Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States on or after May 10, 2019, the rate of additional duties on imported articles classified in a subheading covered by the September 21, 2018 Federal Register notice, as amended, will be 25 percent ad valorem.
- For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States on or after May 10, 2019, report the following HTS numbers and duty rates:
HTS: 9903.88.03 and 9903.88.04
Duty Rate: 25 percent
- For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and before June 1, 2019, and exported to the United States before May 10, 2019, report the following HTS number and duty rate:
HTS: 9903.88.09
Duty Rate: 10 percent
- The subject imports of China that are entered into the United States on or after June 1, 2019 are subject to the 25 percent rate of additional duty under HTS 9903.88.03 and 9903.88.04.
- The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export.
Accordingly, goods exported before May 10, 2019 must be entered in the U.S. or withdrawn from warehouse before June 1, 2019 in order to qualify for the lower 10% additional duty rate. Goods entered on June 1, 2019 or later will be subject to a 25% additional duty rate irrespective of the date of export.
If you have any questions, please feel free to contact us.
