Trump hints at delay of additional duties originally set for March 1st.

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According to CNBC, President Trump says he will delay additional China tariffs originally scheduled to start on March 1. In a series of posts on Twitter, President Trump indicated a delay for the imposition of “List 3” of duties under Section 301 because of “substantial progress” in trade talks currently underway between the US and China.

While the tweets hint at a delay, there was no hint of a revised deadline to reach an agreement with China. Time will tell whether the US and China can reach an agreement on the key issues of intellectual property protection and forced technology transfer.

In other news, a late March meeting between President Trump and Chinese President Xi Jinping will likely occur at Trump’s Mar-a-Lago golf club in Palm Beach, Florida.

More updates will be posted as they became available.

How you can protect your company in light of the new China tariffs.

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Since “List 1” of the tariffs on Chinese goods became effective on July 6th, we’ve had many calls from importers, forwarders and brokers on the best practices moving forward. Here’s a quick summary of what any importer should do regarding their imports of Chinese goods –

  1. Apply for a company-specific exclusion from the tariffs. The U.S. Department of Commerce (Commerce) has published procedures for doing so on their website. The current approved exclusions are from steel tariffs with more exclusions to follow as Lists 2 and 3 take effect likely later this year.
  2. Review your classifications of imported merchandise. There may be more appropriate HTSUS numbers that your merchandise can be entered under and not subject to duties.
  3. Companies can also use the rules of origin to see if imported merchandise can be from another country other than China. This could result from moving the manufacture location, or moving the location of the “substantial transformation” of those goods.
  4. Adjust the valuation of the merchandise. See if the imported goods are properly valued.
  5. If merchandise is imported to the US for export out of the US, be sure property TIB, IT, T&E bonds are filed.
  6. No one likes surprises – it is best for importers, compliance, supply chain, sales and accounting to notify company management of potential tariff changes and the economic impact these new tariffs will have on profit and costs.

If you have any questions or want to know how your company can protect itself from these new duties, contact experienced trade attorney David Hsu at 832.896.6288 or by email at attorney.dave@yahoo.com.