USTR announced an increase of special tariffs to 25% on $200 billion of U.S. imports from China on May 10 (“3rd List”), and then, on May 13, announced a “4th List” of $300 billion of imports from China subject to special tariffs, so the tariffs will cover all U.S. imports from China. Contact CTRMS for help moving sourcing from China to Vietnam, including “Advance Rulings” from U.S. Customs and Border Protection.
What comes next?
Reneging on the reneging: On the U.S. side, outside advisers are urging Trump to get some assurances from Chinese President Xi Jinping that Beijing could reverse some of its backtracking initially blamed for the breakdown of negotiations. Trump and Xi have yet to speak following the 11th round of talks in Washington earlier this month.
“Lighthizer was only going to go back to Beijing if there was a Trump-Xi call,” said Derek Scissors, a China expert at the American Enterprise Institute.
China 2020: But there is a growing sense that the president might like how things are now, viewing his tough approach to China as an issue that will resonate with voters as election season nears.
“There is a sense the president thinks this is a winning issue and kind of wants to run with it and see where it goes,” said a source briefed on the state of play last week.
Growing trade tensions and disputes between the U.S. and China have added to concerns by U.S. importers, and are likely to continue for years. In the meantime, Vietnam is moving forward for sound reasons of national interest, led by able leaders at an accelerating pace. As far as can be foreseen, the progress being made provides more confidence to business and investment planners to bet on Vietnam – it’s the “right time.”
All information provided is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.
No one should act upon such information without appropriate professional advice after a thorough examination of the facts of their particular situation. Liability claims regarding damage caused by the use or disuse of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected.
NOTE: The U.S. Customs and Border Protection (CBP) requires that importers use “reasonable care“ when importing.
“For example, under Section 484 of the Tariff Act, as amended (19 U.S.C. § 1484), the importer of record is responsible for using reasonable care to enter, classify and determine the value of imported merchandise and to provide any other information necessary to enable CBP to properly assess duties, collect accurate statistics, and determine whether other applicable legal requirements, if any, have been met. CBP is then responsible for fixing the final classification and value of the merchandise. An importer of record’s failure to exercise reasonable care could delay release of the merchandise and, in some cases, could result in the imposition of penalties or, in certain instances, referral for criminal enforcement.”
“Have you consulted with a customs ‘expert’ (e.g., an attorney, licensed customs broker, or a customs consultant) to assist in the description and/or classification of the merchandise?”
For assistance, please contact the author, Nestor Scherbey, Licensed U.S. Customs Broker, at:
CTRMS Viet Nam
Ho Chi Minh City, Vietnam
Tel: +84 (0) 9 7772 2979
USTR Announcement, May 10, 2019
“Earlier today, at the direction of the President, the United States increased the level of tariffs from 10 percent to 25 percent on approximately $200 billion worth of Chinese imports. The President also ordered us to begin the process of raising tariffs on essentially all remaining imports from China, which are valued at approximately $300 billion.”
USTR Announcement, May 13, 2019, with List of items on “4th List” (click the link for the Notice, scroll to page 7 to see the Annex – “Proposed Product List”)
Posted: May 20, 2019 (Nestor Scherbey)