Customs has finally issued guidance on the implementation of the IEEPA/Reciprocal Tariffs. There will be a 10% tariff assessed on imports from all countries with normal trade relations with the US effective April 5. An expansive list of countries will also be assessed an increased reciprocal tariff to be effective on April 9. The country-specific tariffs will not be assessed in addition to the 10% tariff. What this means is that a country like China will be assessed the 10% additional tariff for four days, and then their country-specific tariff of 34% will be effective on April 9.
Goods that were loaded on a vessel for exportation prior to April 5 and entered for consumption prior to May 27 are exempt from this latest round of tariffs. A list of HTS codes that are exempt from these tariffs has also been published. Products that are under the Section 232 tariffs for steel or aluminum products and derivatives will be exempt as well. An exemption has been established for imported goods with a US content that comprises at least 20% of the Customs value.
Please note that the established rates for the country-specific tariffs are subject to change. Countries may be able to negotiate a lower tariff by actions such as lowering the tariffs they charge the US, and tariffs may be increased on countries that install retaliatory tariffs.
For more information, please visit the links below. Annex I covers the country-specific tariffs, Annex II has the list of HTS codes exempt from these tariffs, and Annex III is the guidance documents, which also include the new provisional numbers to be used.
Best Regards,
Sam McClure, LCB
Director of Compliance & Customs Services