[BREAKING NEWS – CLIENT ALERT]
In an effort to keep our clients as up to date as possible, please read the following alert:
NEW E.U. TARIFFS OF 10-25% ANNOUNCED EFFECTIVE 10/18/19
The US-EU conflict over Boeing and Airbus subsidies is impacting other goods. The Trump administration announced this week that tariffs on certain European-origin imports will begin October 18, 2019.
While certain aircraft will be subject to 10% ad valorem import duties, the rest of the products on USTR’s list will be subject to 25% duties. The list includes a wide range of food and goods including whiskies, wine, olives, various cheeses and other dairy products, fruit, coffee, clams and other shellfish, certain metal tools and textiles.
IMPORTERS AND E.U. BASED COMPANIES CONSIDERATIONS
The effective date of the new tariffs is October 18, 2019, although what exactly is meant by this is not yet clear. Normally the effective date of tariffs such as these is usually stated in terms of “entered on or after,” referring to the date that Customs accepts the formal entry of the goods. Gallagher, as the customs broker, submits an “entry” to Customs, and the date of entry is considered to be when Customs accepts the entry by releasing the goods. The goods must be within port limits before an entry can be accepted.
To clarify further:
-‘Effective Date’ has no bearing on the date of export
-Per Customs, it is for goods entered or withdrawn from warehouse for consumption on or after the effective date.
-Both the entry date and arrival date are considered and the later date is used as the effective date. For example, a full container shipment from Italy is set to arrive New York port on 10/20/19. As normal, we will submit the entry to Customs up to 5 days prior to arrival and expect to get a release (so entry date 10/15/19 (no EU tariff)) but when the vessel arrives on 10/20/19, the entry date will be automatically updated to the date of arrival (so EU tariff will apply). It would work in the opposite direction as well; if the shipment physically arrives in the US prior to the effective date but the entry is not submitted/ approved by Customs prior to the effective date, the additional tariffs would apply.
This is an unfolding situation and importers and manufacturers of goods on USTR’s list will want to stay updated on the status of the tariffs. Previous tariff actions on Chinese-origin goods have included a procedure to request an exclusion of a particular product. No announcements have been made yet on EU products but there may be a similar exclusion process announced as well.