USTR Issues Tariffs on Chinese Products in Response to Unfair Trade Practices
United States will begin collecting 25 percent tariffs on 818 different classifications of goods made in China effective JULY 06 2018. This list includes boat motors, aircraft parts, dishwasher parts ball bearings, machinery, and manufacturing equipment, among other commodities.
We would also like to remind importers of customs bond requirements and the potential for quick saturation of existing bonds. Continuous bond amounts are calculated using 10% of the total duties, taxes, and fees paid for the previous 12 month period. The minimum continuous bond amount allowable is $50,000 USD, which covers up to $500,000 USD in duties, taxes, and fees to U.S. Customs and Border Protection (CBP).
The sharp increase in tariffs could result in rapid saturation of your customs bond. If your company’s bond becomes saturated and rendered insufficient by CBP, your company will not be permitted to import goods into the United States until a new bond with a higher limit of liability is established. Please be aware of the duties, taxes, and fees your company is paying and proactively monitor your bond saturation level.
If your bond begins to approach saturation, you will be notified by either CBP, the service provider that manages your bond, or the surety company. If your company is notified CBP , your firm will have only fifteen (15) days to increase the bond.
If your company has questions regarding bond sufficiency or the China 301 tariffs, you can contact the Willson U.S. Regulatory Team via email transitionus@willsonintl.044d949.netsolhost.com or by phone at 716-260-1580 Option 4.