Find the phasic progression of the China tariffs outlined in their four linear tranches below.
Beginning last year, on July 6, 2018, $16 billion worth of Chinese products were hit with additional tariffs. This list presided three additional tranches imminent to follow.
The next list expanded to include $23 billion worth of imports from China on August 23, 2018. These first two lists required an additional 25% duty to be added to any taxation the affected commodity currently required.
The third wave provided a list of items to tentatively be taxed at an additional 10% on September 24, 2018 including $200 billion in imports from China. This has recently been increased to an inclusive 25% as of May 10, 2019.
In quick summation, all current tranches of newly increased tariffs are an additional 25%, respectively.
A fourth list has been issued for consideration this month (May 2019). This list, pending as of now, will conceptually include the remainder of all products imported from China not previously comprised in lists 1-3.
There are certain strategic actions that can be taken to minimize the negative impact these additional tariffs may have on your business. Conversely, there are actions that should be avoided to maximize business ethics and long-term efficiency.
Review all product HS codes
Utilize the $800 de minimis threshold (this is calculated on a daily imported basis)
Consider how much inventory you currently own
NEVER intentionally misclassify your imported goods
Refrain from shipping via alternative countries – duties are based on Country of Origin, not final transits
Scale current prices to reflect tariff increases
While the conclusion and forthcoming reconciliation of the U.S. / China Trade War is [expectantly] inevitable, we understand the associated frustration and can effectively offer compliance and regulatory guidance in the meantime. If you are searching for more information or have commodity specific inquiries, feel free to reach out to us HERE.
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