CBP Issues Guidance for Higher Canada Tariffs
CBP on July 31 provided guidance on new tariffs on Canadian imports, which were raised from 25% to 35% Aug. 1 (see 2507310082).
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For Canadian products entered for consumption or withdrawn from warehouse for consumption, the following Harmonized Tariff Schedule of the U.S. classifications and additional duty rates now apply:
"9903.01.10: All imports of articles that are products of Canada, other than products classifiable under headings 9903.01.11, 9903.01.12, 9903.01.13, 9903.01.14 or 9903.01.15 and other than products for personal use included in accompanied baggage of persons arriving in the United States, will be assessed an additional ad valorem rate of duty of 35%."
"All articles that were subject to the additional ad valorem rate of duty of 25% under Executive Order 14193, as amended, shall instead be subject to an additional ad valorem rate of duty of 35%," CBP said.
The CSMS message also reiterated plans to levy a transshipment penalty. For this, the HTSUS classification code is 9903.01.16. Canadian goods that are determined by CBP to have been transshipped to evade duties will be assessed a 40% rate "in lieu of the rates that would otherwise be applicable under 9903.01.10, 9903.01.13 and 9903.01.15." Exempt from this tariff are products described in 9903.01.11, 9903.01.12, and 9903.01.14.