U.S. Customs and Border Protection has been instructed to begin collecting Section 301 duties on 818 products of China origin at the rate of 25% effective July 6th.
The total value of the targeted goods is $50 billion.
List 1, which was implemented on July 6th, is valued at $34 billion and the second list of products is expected to hit importers once the comment period ends. List 2 is valued at approximately $16 billion.
The U.S. Administration blames China for the loss of intellectual property through forced technology transfers for market access or in some cases outright theft.
The conflict may grow as the U.S. administration has asked trade officials to evaluate another target list valued at $200 billion to potentially be implemented in the event that China retaliates, which seems very likely. Selected products would see an extra 10% duty.
There are several mitigation strategies that may help. Ask us about:
- Validating product classification
- Country of Origin assessment
- Customs valuation reduction strategies
- Duty deferral programs
- Drawback opportunities
- Product exclusion submissions
This is a very fluid situation that we are watching closely and will continue to provide updates on. Subscribe to TradeLane to ensure you never miss an update.