As the United States seeks to establish and ensure ‘fair and equitable’ trade, the present landscape is one in which tariffs are playing a major role as a key device in encouraging and securing a positive change in the United States’ trade imbalance.

The Administration’s use of IEEPA, Section 232 Duties, Section 301 Duties, and tariffs in general has resulted not only in an increase in Customs Duties but also in an increase in the entry data required for submission and review by CBP and Other Government Agencies. The additional tariff requirements have resulted in a tiered (layered) system of Duty Assessment for a great many products entering the United States that require the submission of multiple HTS No.’s per line item to process a Customs entry.

To properly adhere to the increasing tariff requirements, import Customs Entries for shipments subject to IEEPA, Section 232 duties, and Section 301 duties MUST report numerous additional HTS No.’s for each appropriate tranche of Duties that may be applicable. As a result, many tariff lines have increased from one line, one tariff no. (one HTS No. reported) to up to 4 total HTS No.’s for one commodity / line item on a Commercial Invoice.

In the following example, a total of 4 individual HTS No.’s are required to be submitted to CBP for Customs entry and clearance on a per line-item basis. As a result of the additional data elements required, internal entry processing times have steadily increased proportionate to the added data elements requiring preparation and submission.

Following is an example of the HTS Entry data required for entries subject to goods of China origin that are also subject to Section 232 Duties.

HTS No. 9903.01.24

• Applies an additional 20% ad valorem duty to imports from China and Hong Kong

HTS No. 9903.88.01 (25%) / 9903.88.03 (25%) / 9903.88.15 (7.50%), etc.

• Applies additional Section 301 duties to imports from countries with unfair trading practices
• 9903.88.01 (25%) / 9903.88.03 (25%) – Applies to Section 301 duties levied at 25% for goods entered into the U.S. on or after June 01, 2019

HTS No. 9903.81.90

• Section 232 Duties applicable to steel products
• Applies an additional 25% duty to steel and derivative steel products; Import duty is based on the value of the Steel content

HTS No. 9903.85.08

• Applies an additional 25% duty to aluminum and derivative aluminum products; Import duty is based on the value of the Aluminum content
• Derivative aluminum products listed in subdivision (k) (new aluminum derivative articles not classified in Chapter 76 subject to Section 232). Import duty is based on aluminum content value.

HTS No. XXXX.XX.XXXX

• The actual HTS No. for the commodity itself is now reported. The commodity is subject to the duties as applicable to the respective HTS No.

J.W. Allen will be assessing a $5.00 per HTS No. fee (per line) for all entry line items requiring the reporting of multiple HTS No.‘s. Based on the example noted above requiring a total of 4 HTS No.’s to be submitted, the 3 additional 9903 HTS No.’s will each be assessed a $5.00 fee for a total of $15.00 additional for this line item.

These additional processing fees will be assessed per line based on the no. of each additional HTS No. that is required to be submitted.

For more information on IEEPA, Section 232 Duties and Responsibilities, Section 301 Duties and Responsibilities, please select the following links:

IEEPA

Section 232 Tariffs on Steel & Aluminum

Section 301 Tariffs

The Trump Administration is preparing to announce additional sweeping tariffs on U.S. imports on Wednesday April 2nd; a day President Trump calls “liberation day”.

J.W. Allen & Company will be closely monitoring the Administration’s announcement and will follow up soonest with a summary of the anticipated tariff revisions and trade implications.