Is your company importing finished goods or product components from China? If your answer is “yes”, then it is likely that the recent tariffs of 10% or 25% may impact your business. President Trump has announced that beginning Sept. 24 an additional ten percent tariff will be imposed on 5,745 tariff lines from China with an import value of approximately $200 billion. This tariff is scheduled to increase to 25 percent as of Jan. 1, 2019.
The full list of products affected by the new ten percent tariff is available here.
The President also mentioned that he will initiate a process of increasing tariffs on another $256 billion dollars worth of goods if China “takes retaliatory action against our farmers or other industries.”
Businesses affected by these recent changes are starting to reshape their supply chains by analyzing which HTC codes are affected, assessing existing contracts and considering negotiations of new business relationships. We recommend you do the same.
If you believe these tariff changes are going to affect your bottom line or
Do’s and Don’ts when importing from China
- In the meantime, take extreme caution to avoid the following:
- Misclassifying goods to avoid tariffs at the border
- Transshipping goods through another country in an attempt to evade the tariffs
- Changing the classification of materials without assessing the risks of a Customs inquiry and consulting with a professional
DO seek professional consultation before making any changes. U.S Customs is looking for and scrutinizing for evasions. Attempting to do so will lead to stiff penalties.