Hello Customers, Colleagues, and Friends…
We are writing to inform you of the additional duties on imports from Canada and China, which will take effect at 12:01 a.m. ET on February 4, 2025. U.S. Customs and Border Protection (CBP) has issued guidance detailing the affected goods, applicable tariff classifications, and key compliance considerations.
Please note additional tariffs on C/O Mexico goods has been temporarily halted. Keep in mind, “in-transit” goods has a very specific definition. Please view the sources at the bottom of this notice to view CBPs guidance on these changes to importing procedures.
Canada
Under Executive Order 14156, the U.S. has imposed additional duties on imports from Canada:
- 25% Tariff: Applies to most Canadian imports classified under HTSUS 9903.01.10.
- 10% Tariff: Applies to energy and energy resources from Canada (HTSUS 9903.01.13), including crude oil, natural gas, refined petroleum products, and critical minerals.
- Exemptions: Donations (HTSUS 9903.01.11), informational materials (HTSUS 9903.01.12), and certain in-transit goods loaded before February 1, 2025 (HTSUS 9903.01.14).
China
Pursuant to Executive Order 13936, the U.S. has implemented new duties on imports from China and Hong Kong:
- 10% Tariff: Applies to most Chinese and Hong Kong imports under HTSUS 9903.01.20.
- Exemptions: Donations (HTSUS 9903.01.21), informational materials (HTSUS 9903.01.22), and certain in-transit shipments loaded before February 1, 2025 (HTSUS 9903.01.23).
Key Considerations for Importers
No De Minimis Exemptions: Goods from Canada, China, and Hong Kong are no longer eligible for duty-free entry under 19 U.S.C. § 1321(a)(2)(C).
- No Duty Drawback: Refunds of duties on re-exported goods will not be available.
- Foreign Trade Zones: Goods admitted on or after February 4, 2025, must enter under “privileged foreign status” and will be subject to duties upon withdrawal.
- Chapter 98 Exclusions: Additional duties do not apply to most Chapter 98 tariff provisions, except for specific subheadings related to repairs and assembly in Canada and China.
- In-Transit Shipments: Limited exemptions exist for goods that were in transit before February 1, 2025, with entry required before February 7, 2025, for Canada and March 7, 2025, for China.
WHAT THIS MEANS FOR YOU
- Increased tariffs on imported goods from Canada, Mexico, and China.
- No duty-free de minimis treatment for affected products.-No exclusion process or duty drawback available for these tariffs at this time.
- Additional retaliatory tariffs may be introduced by US depending on countermeasures by the subject countries (MX, CA, & CN)
- Uncertainty in compliance procedures due to lack of CBP guidance.
- Additional compliance requirements for Foreign Trade Zones.
Please continue to plan accordingly for your import, export, and domestic transportation needs.
Sincerely, Your friends at Krenz and Hannan International
SOURCES
CSMS # 63988468 – GUIDANCE: Additional Duties on Imports from China
CSMS # 63988467 – GUIDANCE: Additional Duties on Imports from Canada