20 Sep 18

Newsflash: Additional List of Tariff Codes for Chinese-Origin Goods


Dear Valued Customer,

Please be advised, on September 17th, 2018 the Office of the U.S. Trade Representative (“USTR”) announced a final list of tariff codes covering Chinese origin products that will be subject to additional tariffs. The products included on the list, known as “List 3” will be subject to 10% additional duty effective on September 24, 2018 until the end of the year. The additional duty amount increases to 25% on January 1, 2019.

Proposed “List 3" of 6,031 tariff codes was published on July 17, 2018. Only 279 (fully or partially) of the 6,031 tariff codes were removed from the final list. All products classified in chapter 97 of the U.S. Harmonized Tariff Schedule, "Works of Art, Collectors' Pieces and Antiques" were left off of “List 3”.

The addition of “List 3” means that there are now over 6,000 tariff codes that cover $250 billion in Chinese origin imports and that will be subject to 10% duties until January 1, 2019 followed by 25% thereafter ("List 3") or 25% ("Lists 1 and 2") duties. Please keep in mind these duties are in addition to the normal duty rate associated with the tariff.

There is a fourth list, covering the balance of imports from China that has been drafted. The USTR has not published the so called "List 4” but indicated that if China retaliates it will subject the balance of imports into the United States from China to additional tariffs. Chapter 97 of the U.S. Harmonized Tariff Schedule, "Works of Art, Collectors' Pieces and Antiques" is not included in any list yet, however the threat of “List 4” means reprieve is not guaranteed. Masterpiece will continue to monitor the situation.

Importers should continue to review their classifications used for importation. While some classifications are straightforward, others are not. We advise requesting binding ruling requests whenever possible to protect against any unwanted surprises. Contact your local Masterpiece office for details or should you have any questions about these duties.

Summary:

List 1 – products pay 25% additional tariff, effective July 6, 2018

List 2 – products pay 25% additional tariff, effective August 23, 2018

List 3 – products pay 10% additional tariff, effective September 24, 2018, rising to 25% January 1, 2019.

List 4 – only threatened at this point, tariffs currently unavailable

Thank You,

Contact Masterpiece

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