Blog/News

Section 301 Tariffs Increase to 30 Percent on Chinese Goods Suspended

After meeting with Vice Premier Liu He of the People’s Republic of China, President Trump announced in a news release on October 11, 2019 that the duty increase from 25% to 30% on List 1, 2, and 3 products would be suspended. A final decision will be made later regarding the additional duties scheduled to go into effect December 15, 2019 for List 4B commodities.

Information regarding the phase one deal can be found in the White House news release here.


IF YOU IMPORT FROM THE E.U.

Following a World Trade Organization decision paving the way, the U.S. Trade Representative (“USTR”) has published a list of products form E.U. origin which will be subject to additional duty rates of 10% or 25% ad valorem, effective October 18, 2019.

We expect that a FEDERAL REGISTER notice will be published with the details including confirming the definition of the October 18 effective date; effective dates are commonly based on the date of entry. 

A link to the list of products, countries and additional tariff rates may be accessed at:  https://ustr.gov/sites/default/files/enforcement/301Investigations/EU_Large_Civil_Aircraft_Final_Product_List.pdf

As with other tariffs, close coordination with your carrier and EXPRESS representative is needed to avoid duties assessed to shipments arriving before the effective date.  EXPRESS Trade Capital, Inc. is available to answer your questions, help assess impact to your business and discuss mitigation strategies. Reach out to us at logistics@expresstradecapital.com


If you Import from China

By; Carli Valinoti, Express Trade Capital 

After meeting with President Xi over the weekend, President Trump announced decisions regarding the bilateral trade dispute. The President announced that while current tariffs will remain in place, he will not move forward with additional tariffs as negotiations continue. Therefore, there are no immediate plans to implement Tranche or List 4 trade-remedy tariffs.

The United States Trade Representative recently concluded seven days of hearings on the proposed List 4. The testimony and comments solicited from the public as part of the List 4 review may influence the products to be included and tariff rate if and when any additional trade-remedy actions are taken. But for now, any action on List 4 is on hold.

If you import from China, Express Trade Capital is here to assist with trade strategies to minimize the impact, apply for exemptions, and process refund claims where exemptions have been granted. Click here to contact Express Trade Capital for expertise and support. We are here to help.


IF YOU IMPORT FROM MEXICO

By; Carli Valinoti, Express Trade Capital 

Late Friday night the President announced successful negotiations with Mexico.  With a signed agreement addressing illegal immigration, the President has suspended indefinitely the planned tariffs against Mexico. 

The 5% tariff on goods from Mexico will not go into effect on June 10, 2019.  


Issues Importing from India

Carli Valinoti, Express Trade Capital 

On May 31, 2019, President Trump issued a proclamation announcing the termination of India as a beneficiary developing country. The decision comes as a result of the fact that, according to the President, India has not assured the United States that it will provide equitable and reasonable access to its markets as well as refrain from engaging in unreasonable export practices. 

Among other things, this means that US imports from India entered for consumption or withdrawn from warehouse for consumption, will no longer be eligible for preferential duty treatment under the Generalized System of Preferences as of June 5.

Contact Us to learn how ETC can help you manage your supply chain and any unforeseen costs.


Possible Rising Tariffs at the Mexican Border

Carli Valinoti, Express Trade Capital

President Trump has announced plans to impose 5 percent tariffs on all goods imported from Mexico, rising to as high as 25 percent until – according to the White House – the Mexican government stems the flow of migrants. While most specifics are not yet known – conceptually, tariffs will become effective June 10 and gradually increase by 5 percent each month until they reach 25 percent in October.

What we still don’t know:

  • If the action is to be administered by the date of export
  • If all exports from Mexico to the US are covered including non-Mexican origin goods exported from Mexico and the US goods returned
  • Whether NAFTA benefits for duty and merchandise processing fee will be allowed
  • Whether these tariffs are eligible for drawback, among others

Contact us today to learn about ETC’s trade protection financing options.


Turkey Trade Designation Update

Sadie Keljikian, Express Trade Capital

The President issued Proclamation 9887 on May 16th, entitled To Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974. The proclamation indicates the termination of Turkey’s status as a beneficiary developing country, effective May 17th, 2019. The decision comes as a result of Turkey surpassing minimum economic criteria for the designation.

For US importers, this has a few implications. First, all goods brought in from Turkey are no longer eligible for preferential duties under the Generalized System of Preferences, or GSP. Crystalline silicon photovoltaic (CSVP) cells from Turkey are now subject to safeguards outlined in Proclamation 9693. Additionally, large residential washers coming from Turkey will be subject to stipulations indicated in Proclamation 9694.

Subscribe to our newsletter today to make sure you don’t miss any updates that may affect your business.

Contact us to learn how ETC can help you manage your supply chain and any unforeseen costs.


Trade War with China Rages On

Sadie Keljikian, Express Trade Capital

Per last week’s announcement, the White House has raised existing tariffs on $200B worth of Chinese imports from 10% to 25% and is now threatening new tariffs of up to 25% on an additional $300B worth of Chinese imports as part of its ongoing trade war with China. The latest list targets a wide variety of goods, including apparel, accessories, food and beverage products, and livestock.   

President Trump seems optimistic about reaching an agreement with Chinese President Xi Jinping and downplays the conflict as a “little squabble…because we’ve been treated very unfairly for many, many decades.” The proposed changes will likely take effect in late June or July unless a trade agreement can be reached before then. Importers should begin preparing to either pay the newly raised tariffs or acquire their goods elsewhere.   

Talk to our team today to learn how ETC can help you plan for the increased costs your business will incur due to the new tariffs and how to protect your business during these uncertain times.   


Managing Director Mark Bienstock Talks Trade War with California Apparel News

Business owners who rely on China’s abundant manufacturing facilities and low production costs may be in for a massive challenge. The ongoing trade war the US government has waged with China may not end by March, meaning more potential tariffs that could disrupt the global economy.

ETC’s own Mark Bienstock and other industry experts spoke to California Apparel News this week about strategies to protect yourself and your business from the effects of this ongoing international conflict.

Click here for details on our trade protection financing service.

Contact us for more information.


Changes to GSP Eligibility

Results of a GSP review have just been published as Presidential Proclamation 9813. This announcement lists changes to select products and countries. The GSP status of these identified articles is effective for goods entering on/after November 1, 2018.

If you would like more information or analysis as to how this impacts your company, please contact our logistics department at logistics@expresstradecapital.com.