Duty rate Increase on certain items of Chinese origin postponed

Pitney Bowes

 1 MINUTES

13 March 2019

The Office of the United States Trade Representative (USTR) is responsible for developing and coordinating U.S. international trade, commodity, and direct investment policy, and overseeing negotiations with other countries.  Last year, the USTR announced 10% additional tariffs on a third list (“List 3”) of imports into the United States for products of Chinese origin.  In 2019, the rate on these additional tariffs was supposed to increase from 10% to 25%.

However, on March 5th, the USTR issued a modification postponing the scheduled increase “until further notice”.  Customs has confirmed that the “List 3” duties will remain at 10%.  The delay is due to progress in U.S. and China negotiations initiated by a tweet from President Trump in February.  It is unclear how quickly “further notice” might be issued to end the indefinite delay in the rate increase.  

Should the increase take place, we expect any impact from these additional tariffs to be on exports from the United Kingdom and Australia to the United States for orders above the U.S. de minimus threshold (i.e., US $800).  Click here to read our detailed notes on our Borderfree Docs site regarding impacts of this potential change on UK and Australian merchants.

Please contact your client manager for additional information about the impact to your business and recommendations or the Compliance Team at ecommercecompliance@pb.com with any questions.