On February 4, 2020, United States Customs and Border Protection (CBP) issued a bulletin providing guidance related to the United States Trade Representative (USTR) Federal Register Notice 85 FR 3741 issued on January 20, 2020, which decreased the China List 4A tariff to 7.5% from 15%.
The CBP bulletin, CSMS Message 41538917, provides guidance to importers and filers for processing entries. Any article classified in a subheading covered by China List 4A that is a product of China and that is entered, or withdrawn from warehouse for consumption, on or after February 14, 2020, is subject to the decreased Section 301 ad valorem duty rate of 7.5% in addition to the general (Column 1) rate of duty for the imported merchandise.
In addition to the regular Harmonized Tariff Schedule number (HTS#), filers will need to utilize HTS# 9903.88.15 to claim the 7.5% rate.
It is important to note that immediate delivery procedures are not applicable; therefore, the filer cannot elect and lock in an entry date after February 14, 2020, in order to take advantage of the duty decrease.
Foreign-trade zone merchandise entered under privileged foreign status will be subject to tariff classification at the rate of duty and tax in force on the date of filing for privileged foreign status.
For more information, please contact your local Noatum Logistics USA (formerly MIQ Logistics) representative.