Reminder: List 3 U.S. Section 301 Tariffs to Increase to 25% January 1st, 2019

U.S. importers should note Section 301 tariffs (duties) for List 3 products from China are scheduled to increase to 25%, from the current 10% rate, beginning January 1st, 2019. These duties are assessed in addition to any other applicable duties or taxes.

To minimize the impact of these duties, importers should proactively assess the upcoming change and related risk now. Products on List 3 must be ‘entered’ into the U.S. prior to January 1st, 2019 to avoid the increase. U.S. Customs must both receive the entry (release) transmission from the filer and arrive the related cargo at the U.S. port of entry before this date.

U.S. importers and carriers are encouraged to consider the above information in planning for shipments scheduled to arrive towards the end of this year. Customs and freight service providers will need to work effectively and collaboratively to ensure available cargo is entered in a timely manner.

Ocean imports containing products in List 3 should be carefully considered and tracked if not already in transit. Available container space from many parts of Asia is severely limited at the moment. Many west coast ports in North America are seeing significant congestion with vessel arrivals being delayed in many cases. This port congestion is expected to continue throughout the remainder of the year.

‘All water’ service to the southern U.S. and east coast ports may extend the arrival time for shipments from Asia beyond the end of the year.

An importer’s ability to enter affected cargo in the U.S. before the end of the year is already constrained with available opportunities expected to diminish rapidly. Possible options to arrive freight into the U.S. this year include:

  • moving freight via ‘land bridge’ (LB) into the U.S. through Canada or Mexico
  • use of smaller west coast ports as the increase in duty may off-set the increase in international or inland freight costs
  • use of mini-land bridge (MLB), and reverse inland point intermodal (RIPI) shipments through the west coast for ‘All Water’ moves.

Delmar can help! With integrated global freight operations and compliant customs services, we are able to immediately provide all available options to U.S. importers facing an increase in Section 301 tariffs. Please contact your local Delmar International representative or our North American Customs Advisory Services Group at for additional information and assistance.

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