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Anticipated Increase from 10% to 25% on Section 301 Tariffs on Chinese imports

The media has been buzzing with a lot of speculation around the next steps for the Section 301 List 3 Tariffs between the USA and China; will they be increased from 10% to 25%? As of yesterday, US Customs Brokers had visibility to changes that US Customs had already made in the Harmonized Tariff Schedule that are electronically received. Apparently, this was done in anticipation of the announcement from the United States Trade Representative (USTR), by the direction of President Trump.

Modification of Section 301 Action: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation​

The above link is for the unpublished Federal Register that is scheduled to come out tomorrow, May 9, 2019.  It indicates that the Section 301 List 3 Tariffs will move from 10% to 25% on May 10, 2019. An excerpt from the unpublished register can be found below.

“In accordance with the direction of the President, the U.S. Trade Representative (Trade Representative) has determined to modify the action being taken in this Section 301 investigation by increasing the rate of additional duty from 10 percent to 25 percent for the products of China covered by the September 2018 action in this investigation. The Trade Representative has further determined to establish a process by which interested persons may request that particular products classified within a tariff subheading covered by the September 2018 action be excluded from the additional duties.

DATES: The rate of additional duty will increase to 25 percent with respect to products covered by the September 2018 action on May 10, 2019. It is important to note that the exact instructions in the Annex are: Effective with respect to goods (i) entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 10, 2019, and (ii) exported to the United States on or after May 10, 2019, subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified.”

Please keep in mind that this situation is incredibly dynamic and can change again. RIM logistics, ltd. will do all we can to keep you up-to-date on anything that is officially announced from the USTR.