The U.S. and Chinese governments signed an initial (Phase One) trade agreement in Washington, D.C. on January 15, 2020. This overall framework includes a number of individual agreements governing various aspects of trade between the two countries, including technology transfer, intellectual property and financial services.
Included within the overall agreement is a commitment to reduce some tariffs (duties) previously erected by both countries.
U.S. importers should note that Section 301 tariffs for List 4A products will be reduced from the current 15% tariff rate to 7.5% effective for goods entered or withdrawn from a warehouse on or after February 14, 2020. Section 301 tariffs for List 4B products have been withdrawn as part of this agreement. All other Chinese Section 301 tariffs remain unchanged.
Importers are encouraged to consider this information carefully in managing the upcoming import of any Chinese List 4A products. Consideration should be given to delaying customs entry into the U.S. – such as utilizing a bonded warehouse – In order to benefit from the reduced duty rate.
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.