Tariffs of 25% on US$200 billion worth of Chinese goods have come into effect today, May 10, as the midnight deadline imposed by the U.S. on China has been reached, according to a live update of the U.S.-China trade talks by The Guardian.
The news outlet further said that earlier on May 9, the U.S. Customs Office revealed that goods which set off from China to the U.S. before the midnight deadline would still be taxed at 10%, not the new 25% rate, giving Chinese firms a grace period as anything already en route by boat or air will still get the lower tariff.
Last May 9, the U.S. Customs and Border Protection service issued a memo about the increase in tariffs from 10% to 25% that was due to come into effect on May 10.
The memo said:
“On May 9, 2019, the USTR published a Notice of Modification of Action (84 FR 20459) in the Section 301 investigation increasing the duty rate to 25 percent on imports from China on the over 5,700 full and partial eight-digit subheadings of the HTSUS listed in Annex A to the USTR’s September 21, 2018 Notice, as amended.
“The increase in additional import duties for Chinese goods covered by the September 21, 2018 Federal Register notice, as amended, is now effective on May 10, 2019. Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States on or after May 10, 2019, the rate of additional duties on imported articles classified in a subheading covered by the September 21, 2018 Federal Register notice, as amended, will be 25 percent ad valorem.
“For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States on or after May 10, 2019, report the following HTS numbers and duty rates:
HTS Duty Rate
9903.88.03 and 9903.88.04 25 percent
“For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the United States before May 10, 2019, the 10 percent duty rate will still apply. CBP is working with USTR on additional guidance on the entry filing requirements for these imports.
“In the meantime, for goods entered on or after May 10, 2019, importers can pay the 25 percent duty and file a Post Summary Correction when filing instructions are available for the 10 percent duty. Alternatively, importers can delay filing their entry summary within the standard ten-day entry summary filing period until additional filing instructions are available for the 10 percent duty.
“The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export.”
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