The Weekly Current

General / Compliance

It has been an eventful and challenging week for everyone in the supply chain industry, especially for those moving cargo in or out of the U.S. from China, Canada, and Mexico.

While the tariffs on Canada and Mexico have been postponed for at least 30 days, the additional 10% tariff on goods from China went into effect at 12:01 AM on February 4. Please take note of the following important details:

The tariff affects goods originating from both China and Hong Kong.

Duties are stacking and are in addition to any previous duties, including Section 301 duties.

The additional 10% tariff applies to nearly all goods from China or Hong Kong, with some exceptions, including donations intended to relieve human suffering and certain informational materials, such as publications, photographs, and artwork.

For shipments that were loaded onto a vessel at the port of loading or in transit on the final mode of transport before February 1, there is an in-transit exception. However, qualifying cargo must be entered for consumption before March 7.

De minimis treatment for otherwise eligible goods from China and Hong Kong has been temporarily restored while the government establishes adequate systems to process and collect the applicable tariff revenue.

The new 10% duty is not eligible for duty drawback.

If you have any questions regarding the tariffs or your shipments, please don’t hesitate to contact our compliance team at compliance@oceanair.net. As the situation continues to evolve, OCEANAIR will provide updates as they become available. Be sure to follow our social media for real-time updates.