Federal Register Publication of USTR Notice Delaying Tariff Increase Necessary for CBP Implementation in ACE

CBP is awaiting Federal Register publication of the Office of the U.S. Trade Representative notice delaying increased Section 301 tariffs on $200 billion in Chinese goods (see 1809180016). While the USTR posted the coming notice (see 1812140034), CBP confirmed it would wait to make changes in ACE until the notice is formally published in the Federal Register. The National Customs Brokers & Forwarders Association of America noted in an email to members that there's been some confusion "when customs brokers who transmit entries early for shipments arriving after January 1 notice that CBP's system applies a 25% tariff rate for these products." Brokers should be aware that "10% will be the correct duty rate on January 1, but CBP's system will nevertheless show a duty rate of 25% until official notification is published," NCBFAA said.

The increase from 10 percent to 25 percent had been scheduled for Jan. 1, but the White House on Dec. 1 announced that it would hold off for 90 days while it holds talks with China on intellectual property issues and other areas of concern (see 1812010001). The increase to 25 percent is now set to take effect March 2, according to an updated annex published along with the notice.