Since publication of yesterday’s update (see Trump Administration Increases Section 301 Import Tariff on Third Tranche of Chinese Products from 10% to 25%), questions have been raised as to whether the tariff increase affects shipments from China in process, or “on the water.” The USTR has indicated that products of China that are covered and “that were exported to the United States prior to May 10, 2019, are not subject to the additional duty of 25 percent, as long as such products are entered into the United States prior to June 1, 2019. Such products remain subject to the additional duty of 10 percent for this interim period.” Further, on May 10, 2019, U.S. Customs and Border Protection posted a message indicating that:

  • For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern time May 10, 2019, and exported to the United States on or after May 10, 2019, report the following HTS numbers and duty rates:
    • HTS: 9903.88.03 and 9903.88.04
    • Duty Rate: 25 percent
  • For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern time May 10, 2019, and before June 1, 2019, and exported to the United States before May 10, 2019, report the following HTS number and duty rate:
    • HTS: 9903.88.09
    • Duty Rate: 10 percent