Section 301 Update: Chinese Cargo Exported Before May 10 Exempt from Increase

U.S. Customs & Border Protection (CBP) has provided additional guidance to the trade community related to the application of increased Section 301 tariffs that cover List 3 products of Chinese origin.

In keeping with the Federal Register notice published by the U.S. Trade Representative (USTR), CBP has confirmed that Chinese products on List 3 deemed exported to the U.S. before May 10, 2019 and entering the U.S. prior to June 1st, 2019, will not be subject to the increase in U.S. Section 301 tariffs (duties) from 10% to 25%.

Customs further states it is working with the USTR to clarify entry instructions and provide guidance to the trade community. Subject to that guidance, importers will have the option to either file refund claims for overpaid duty or file corrected entry summaries within 10 days after the customs release of the shipment.

Importers should note the second option above is subject to both CBP and service providers being able to update their systems prior to the entry summary due date.

U.S. imports moving over land through Canada or Mexico, and direct to the U.S., will need to provide the date when the goods crossed the border of the exporting country (i.e. China) as part of the entry filing.

Regardless of export date, any List 3 products entering the U.S. on or after June 1, 2019 will be subject to the increased 25% Section 301 tariff rate. Importers are reminded that Section 301 duties apply in addition to other duties or taxes.

Delmar International will continue to monitor U.S. Section 301 trade developments and provide updated information as it is made available.

Please contact your local Delmar Representative or email our U.S. Customs Advisory Services Group for additional information and assistance.

Additional Information:
CSMS Message #19-000238
CSMS Message #19-000236
USTR Section 301 Investigations

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