NCBFAA Alerts Members of Potential Improper Duty Calculations for China Tariff
In a Feb. 14 email alert to members, the National Customs Brokers & Forwarders Association of America warned that CBP has accepted some entries made by members even though those entries don't have proper duty calculations or new import duties on China that were mandated under President Donald Trump's executive order last week.
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The NCBFAA recommended that brokers take two steps: Ensure that the correct duty is being paid to CBP and be mindful of the Harmonized Tariff Schedule subheading 9903.01.20 duty rate of 10%. "Some entries may have incorrectly sent zero duty in the Chapter 1-97 ordinal line where duty is due, and the 9903.01.20 line may have been sent without the 10% duty," NCBFAA said in the email alert.
The trade association noted that ACE has several system limitations, including that ACE "does not verify duty computations when a line includes more than two HTS codes." The NCBFAA also said that "CBP does not validate the export date against the correct HTS codes (9903.01.20 or 9903.01.23). Therefore, it is recommended to closely review the HTS codes used based on the export date."
Trump used his powers under the International Emergency Economic Powers Act to enact the additional 10% tariff on goods made in China and Hong Kong.