CBP Releases Guidance for Additional Duties on Canada and China (Including Hong Kong)

CANADA

• The additional duties apply to goods of Canada under the rules of origin set forth in part 102, title 19 of the Code of Federal Regulations, as well as goods that are considered to be substantially transformed in Canada.

Applicable HTS Numbers:

• 9903.01.10 – Assigned to assess 25%, except when 9903.01.11, 9901.01.12, 9901.01.13, or 9901.01.14 are applicable.
• 9903.01.13 – Assigned to assess 10% on imports of energy or energy resources.
• 9903.01.11 – Certain donations such as food, clothing, and medicine, intended to be used to relieve human suffering.
• 9903.01.12 – Certain informational materials such as publications, films, posters, and media.
• 9903.01.14 – This is the exception HTS number for products that were:
  1. Loaded on a vessel at the port of lading, or in transit on the final mode of transport prior to entry into the U.S. before 12:01 a.m. EST on February 1, 2025
  2. Entered for consumption, or withdrawn from warehouse for consumption
  3. Entry is between 12:01 a.m. EST on February 4, 2025 and 12:01 a.m. EST on February 7, 2025
      

USMCA Claims:

• Products eligible for USMCA claims are subject to the payment of the new duty.

CHINA/HONG KONG

• Not only will the 10% duty be assessed on products made in China, but it will also be assessed on products from Hong Kong. This duty is in addition to all other applicable duties.

Applicable HTS Numbers:

• 9903.01.20 – Assigned to assess 10%, except when 9903.01.21, 9901.01.22, or 9901.01.23 are applicable.
• 9903.01.21 – Certain donations such as food, clothing, and medicine, intended to be used to relieve human suffering.
• 9903.01.22 – Certain informational materials such as publications, films, posters, and media.
• 9903.01.23 – This is the exception HTS number for products that were:
  • 4. Loaded on a vessel at the port of lading, or in transit on the final mode of transport prior to entry into the U.S. before 12:01 a.m. EST on February 1, 2025
  • 5. Entered for consumption, or withdrawn from warehouse for consumption
  • 6. Entry is between 12:01 a.m. EST on February 4, 2025 and 12:01 a.m. EST on March 7, 2025
     

Current Section 301 Exclusions:

• Products eligible for temporary duty exemptions are subject to the payment of the new duty.

BOTH CANADA AND CHINA/HONG KONG

Chapter 98:

• The additional duties will not apply to goods for which entry is properly claimed under most provisions of chapter 98 of the HTSUS. Goods claiming repairs, alterations, processing, or assembly will have the duties applied to the values of the repairs, alterations, processing, or assembly. These are under HTSUS 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80.

FTZ:

• Goods must be admitted in privileged foreign status, unless eligible to admitted under domestic status. Upon entry for consumption, goods will be assessed the duty in accordance with the order.

Drawback:

• No drawback may be claimed on these duties.

De minimis:

• Section 321 / de minimis treatment is not allowed. Duty and fees are applicable to low value shipments.

Mail:

• All shipments arriving by international mail will require formal entry, regardless of value.

We will continue to share updates as they become available. Please reach out to your Schenker contact with any questions in the meantime.