With retail sales rising and President Trump saying he plans to both increase and broaden tariffs on goods from China, imports at the nation’s major retail container ports are expected to see unusually high levels the remainder of this spring and through the summer, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.
“Much of this is driven by consumer demand but retailers are likely to resume stocking up merchandise before new tariffs can take effect,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Tariff increases and new tariffs will mean higher costs for U.S. businesses, higher prices for American consumers and lost jobs for many American workers. We encourage the administration to stay focused on a trade agreement, and we hope the negotiations will get back on track. It would be unfortunate to undermine the progress that has been made with more tit-for-tat tariffs that only punish Americans.”
On Thursday, May 9, 2019, the Federal Register published a Notice of Modification of Section 301 Action by the United States Trade Representative (USTR) office increasing the rate of the additional duty from 10 percent to 25 percent on the $200 billion in List 3 products imported from China. The increase is effective Friday, May 10, 2019.
Effective Date Specifics
The Federal Register notice amends the Harmonized Tariff Schedule (HTS) of the U.S. to provide that the tariff increase for these List 3 products will be effective with respect to goods:
- entered for consumption or withdrawn from warehouse for consumption, on or after 12:01am EDT time on May 10, 2019; and
- exported to the U.S., on or after May 10, 2019.
On Sunday, May 5, 2019, the President of the United States threatened to move forward with increasing the List 3 China Tariffs from 10% to 25% on $200 billion in imports from China, effective Friday, May 10, 2019. This is a change in the administration’s position from their February 24th decision to postpone the increase indefinitely.
The president also noted that an additional 25% tariff on all remaining products imported from China (valued at $325 billion) would be implemented “shortly.” A specific date and hearing process have not been announced for this new fourth list of products.
Economic activity in the manufacturing sector expanded in April, and the overall economy grew for the 120th consecutive month, say the nations supply executives in the latest Manufacturing ISM® Report On Business®.
During the month of April 2019, MIQ was involved in a number of events throughout the logistics industry. Read MIQ news, industry updates, services offered by MIQ, and events that will be taking place in the April 2019 logistics link.
On Thursday, April 18, 2019, the United States Trade Representative (USTR) office released a third Notice of Product Exclusions to Section 301 List 1 products currently subject to a 25% tariff.
Companies are encouraged to refer to the Annex to the notice of product exclusions to determine if any of your products are included in the 21 products now available for exclusion. The scope of each exclusion is governed by the 10-digit level Harmonized Tariff Schedule (HTS) numbers and product descriptions identified in the Annex to the notice. It is important to note that these exclusions are available for any product that meets the description in the official notice, regardless of whether the importer filed an exclusion request. If you import products that fall under these descriptions, you will be able to claim an exclusion using HTS# 9903.88.07.
On March 15, 2019, U.S. Customs and Border Protection (CBP) ended their delayed enforcement period of the Importer Security Filings (ISF-5) and began issuing liquidated damage claims for the violations of the ISF requirements for Freight Remaining on Board (FROB) cargo, cargo intended to be transported as immediate exportation (I.E.), and transportation and exportation (T&E) in-bond shipments. These shipments, which are docking at United States ports, require the transmission of five (5) data elements 24 hours in advance of cargo being laden on board a vessel.
The MIQ-China team has advised that China will hold an international maritime parade on April 23, 2019, to mark the 70th anniversary of the founding of the Chinese People’s Liberation Army (PLA) Navy. Navies from several other countries are expected to participate. The parade is to take place in the Yellow Sea off the coast of Qingdao city in Shandong province. The following parade-related activities are scheduled:
On Monday, April 8, 2019, the United States Trade Representative (USTR) office issued a press release in response to a World Trade Organization (WTO) finding that subsidies provided to Airbus by the European Union (EU) have caused adverse effects to the United States. The USTR announced that they are identifying EU products to which additional duties may be applied, pursuant to Section 301 of the Trade Act of 1974.