CBP Issues Guidance on Decrease of China Reciprocal Tariff to 10% at 12:01 a.m. ET
CBP released guidance on the decrease of the reciprocal tariff rate on China to 10% beginning at 12:01 a.m. EDT on May 14. As provided in the executive order issued by President Donald Trump the previous day, the guidance says filers of entries from China, Hong Kong and Macau after the effective date should report subheading 9903.01.25, which is the subheading for the 10% universal tariff applicable to almost all countries.
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“Filers will discontinue the use of heading 9903.01.63,” CBP said in the CSMS message.
The agency also reminded filers that products from China and Hong Kong are still covered by the 20% tariff on China meant to address fentanyl, unless they qualify for an exception.
CBP’s guidance didn’t mention the executive order’s 90-day time limit for the tariff reduction, nor changes to the reciprocal tariff rate after the 90-day reciprocal tariff reduction is over. According to the executive order, the tariff rate applicable to subheading 9903.01.63 will go back to its original 34% -- additional tariffs that increased it to 125% will be removed -- but that subheading will be suspended for 90 days.
A subsequent update to CBP's CSMS message noted that the executive order also modified tariff treatment for postal packages under $800. Effective May 14, the ad valorem rate that carriers may pay per package will drop to 54%. While the $100 that carriers may pay per package in lieu of the ad valorem rate won’t change, the planned increase to $200 to June 1 no longer will take place, according to the order.
The updated guidance said "all other restrictions on de minimis shipments remain in effect.'
China’s finance ministry also announced a reduction in their tariff on U.S. goods to 10% effective 12:01 a.m. May 14, according to an unofficial translation.