Section 301 Tariff Increase for List 3 Goods Effective May 10, 2019
Updated: Jun 4, 2019
On May 9, 2019, the United States Trade Representative (USTR) published a notice stating their determination that the additional duty for the products covered by the September 2018 action (List 3 goods) will increase from 10% to 25%. This additional tariff increase is effective May 10, 2019.
GOODS SUBJECT TO THIS DUTY INCREASE:
Goods covered by the HTS Numbers 9903.88.03 and 9903.88.04
Subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported from China to the United States on or after May 10, 2019
LIST 3 GOODS THAT ARE NOT SUBJECT TO THIS DUTY INCREASE:
Goods covered by the HTS Numbers 9903.88.03 and 9903.88.04 that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported from China to the United States before May 10, 2019
For the aforementioned goods that are exported from China to the United States before May 10, 2019, the 10% duty rate will still apply. However, CBP is still working with USTR on additional guidance on the entry filing requirements for these imports. Therefore, if your goods enter into the United States after May 10, 2019, importers will be required to pay the 25% duty and can file a Post Summary Correction when filing instructions are available for the 10% duty
In-transit Chinese-origin goods that fall under List 3 of Section 301 tariffs that are are still eligible for the 10% additional tariff rate must be entered by June 1 to avoid the increased 25% tariff rate. Goods entered on June 1, 2019 or later will be subject to a 25% additional duty rate irrespective of the date of export.
Source: Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
On May 31, USTR announced its intent to extend the deadline by which List 3 goods from China must enter the U.S. to remain subject to a Section 301 additional tariff of 10 percent rather than of the higher 25 percent rate. Originally, such goods exported before May 10 had to be entered by June 1 or be subject to the higher tariff rate, but USTR has now extended that entry date to June 15.
Source: Sandler, Travis & Rosenberg, P.A. (ST&R)