New Section 301 Forced Labor Tariffs in Full Effect
On Thursday, July 23, Customs and Border Protection released a CSMS message implementing new Section 301 Forced Labor tariffs on more than sixty countries beginning July 24 at 12:01 AM ET, a mere six hours after the guidance was sent.
For most countries, these tariffs are either an additional 10% or 12.5% duty rate on top of the MFN column 1 duty rates. For Japan, South Korea, Taiwan, Switzerland, and countries that are members of the European Union the duty rates are inclusive of the column 1 MFN rates. For Japan, South Korea, and Switzerland, this means that products with a column 1 duty rate of less than 12.5% will be assessed a total duty of 12.5%. Products with a column 1 duty rate greater than or equal to 12.5% will be assessed no additional duty. For Taiwan and countries that are members of the European Union, products with a column 1 duty rate of less than 10% will be assessed a total duty of 10%. Products with a column 1 duty rate greater than or equal to 10% will be assessed no additional duty.
A wide range of exemptions are possible, including an in-transit exemption that expired on 7/28. There are also exemptions for specific HTS numbers, description specific exemptions, exemptions for civil aircraft and their parts, exemptions for pharmaceuticals, exemptions for products subject to Section 232, and exemptions for donations and informational materials. Several countries also have specific economy exemptions, some of which are description specific.
For the full list of new chapter 99 tariff numbers and a full list of possible exemptions, please visit CSMS # 69326983 or view the federal register notice here.
U.S. and Jordan Sign Agreement on Reciprocal Trade
On July 21 the U.S. and Jordan signed an agreement on reciprocal trade. In the agreement Jordan has promised to continue to provide duty-free market access for most U.S. goods and to improving trade with the U.S. In turn the U.S. has agreed to apply Jordan FTA duty rates on goods that qualify as originating from Jordan or the MFN duty rate in effect as applicable. The U.S. will also provide preferential tariff treatment for Jordanian goods in future tariff actions save for those implemented under AD/CVD, Section 232, or Section 201.
APHIS Ends Core Message Set Help Desk Phone Line
Due to a decline in phone calls, USDA Animal and Plant Health Inspection Service has announced the end of the APHIS Core Message Set help desk phone line. Support will now be provided exclusively through the help desk email ace.itds@usda.gov.
Those with questions or in need of assistance can submit an email to the help desk including their entry number, a brief description of the issue, any rejection error codes or messages, a copy of the message set, any relevant communications with other parties, and copies of supporting documents and APHIS support staff will do their best to evaluate and resolve issues and inquiries.
PierPass Fee Increase Coming August 1
This is a reminder that the Traffic Mitigation Fee (TMF) for containers is increasing for the Ports of Los Angeles and Long Beach. As of August 1, the TMF will be $40.63 per TEU (twenty-foot equivalent unit) and $81.26 for any other container. This fee is charged on all non-exempt containers. Containers that are exempt from the TMF include empty containers and containers that transit the Alameda Corridor. This fee is charged to offset the cost off labor that allows the terminals to have gates open after working hours to avoid backlogs at the port. The increase of PierPass is tied to the negotiated pay increase that is in the current ILWU labor contract.
Reminder: New Tariffs on Pharmaceutical Imports Begin July 31
Originally announced via proclamation on April 2 along with the modifications to Section 232 for Aluminum, Steel and Copper, the new Section 232 tariffs on Pharmaceuticals will begin on July 31.
These tariffs include a 100% tariff on patented pharmaceuticals and associated ingredients that are listed in Annex I, a 20% tariff on patented pharmaceuticals and APIs produced by companies with onshoring plans that have been approved by the Department of Commerce, a 15% tariff on patented pharmaceuticals and APIs that are products Japan, the European Union, South Korea, Switzerland, and Liechtenstein, and a 10% tariff on patented pharmaceuticals and APIs that are products of the United Kingdom.
General pharmaceuticals, pharmaceuticals and APIs listed in Annex IV, pharmaceuticals and APIs produced by companies negotiating onshoring agreements, U.S. origin pharmaceuticals, and orphan drugs, drugs for animal health, and certain specialty pharmaceutical products are excepted.
The July 31 effective date is only for companies that are listed in Annex III of the proclamation. Tariffs for all other companies go into effect on September 29.