British Columbia Port Strike Could Impact U.S. Section 301 Tariffs on Chinese Imports

With Friday’s announcement concerning a possible strike at two container ports in British Columbia, Canada, beginning Monday, May 27, 2019, U.S. importers should note the potential impact on U.S. Section 301 tariffs. Products of Chinese-origin on Section 301 List 3 must be exported prior to May 10, 2019 and enter the U.S. prior to June 1, 2019 to benefit from a Section 301 tariff rate of 10%. Applicable freight entering the U.S. on or after June 1, 2019 would be subject to a 25% Section 301 tariff rate recently put in place by the U.S Administration.

In most cases, the date of entry is considered the date the goods are arrived by U.S. Customs at the designated U.S. port of entry.

Should a strike occur at the British Columbia terminals as announced, it is expected most freight moving through the ports, regardless of terminal, may be delayed as a result. Even a shortened work action – whether due to a negotiated settlement or government legislation – could cause port delays for days or weeks afterward.

In some cases, Delmar may be able to assist importers facing an urgent delivery deadline by intercepting priority containers at the affected lower mainland ports and expediting their movement inland or to the U.S. via truck. Additional information will be made available shortly.

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

Additional Information:

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

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