Late Friday, May 31, 2019, the Office of the U.S. Trade Representative (“USTR”) announced that they would extend the time frame for the application of increased tariffs on shipments of goods exported from China prior to May 10, 2019. The increase from 10% to 25% in duties was announced on May 8th and was set to be applicable on all imports starting on June 1, 2019. The USTR has now revised its earlier announcement and has stated that shipments must be entered before midnight on June 15, 2019 in order to remain subject to the 10% duty rate. Any entries after midnight on June 15, 2019 will be subject to the increased rate of 25% announced on May 8, 2019.
The sudden tariff increase on the third tranche from 10% to 25% was announced after negotiations with China on a potential trade deal fell through.
The rate increase to 25% means that entries of goods:
(i) entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 10, 2019, and
(ii) exported to the United States on or after May 10, 2019,
will be subject to an additional tariff of 25%. Entries must be subject to both qualifiers-meaning that if a shipment has been exported prior to May 10, 2019 it will still be subject to the 10% duty rate until June 15, 2019. However, if the shipment was exported after 12:01am ET on May 10 the 25% duty rate will apply.