Tariffs and Their Impact on International Shipping

How will the new U.S. tariffs for China and Hong Kong SAR be applied?

Tariffs are applied to all goods originating from China and Hong Kong SAR per the Federal Register Notice.

What are Rules of Origin and how are they applied?

Rules of Origin are the criteria used to determine a product's country of origin for trade and customs purposes. They are essential in applying tariffs, trade agreements and import restrictions. In this case, the Rules of Origin will ensure that all products from targeted countries are subject to tariffs, regardless of their routing to the US.

With the new U.S. tariffs, can I still claim de minimis (below $800 USD per day)?

No. Goods of China, Hong Kong SAR and Macau SAR origin remain ineligible for de minimis treatment and do not qualify for duty-free entry, regardless of how they are routed into the U.S. The de minimis exemption remains in effect for U.S. imports originating in other countries.

Are there exceptions to the 20% additional duties for China and Hong Kong SAR?

Some exemptions may exist for specific commodities as noted in the Cargo Systems Messaging Service (CSMS) bulletin #  63988468. Customers should seek guidance from a qualified professional to confirm if these apply to their products.

Can I claim duty drawback on new U.S. tariffs for China, Mexico or Canada?

No. The additional duties imposed by the Executive Order are not eligible for duty drawback.

How are shipments subject to formal entry handled vs. informal entry?

Non-de minimis shipments will be subjected to formal entry or informal entry depending on various circumstances.

The following will be billed to the shipper or consignee depending on the shipment’s bill term:

Formal entry:

• Merchandise Processing Fee (MPF)
• Duties and taxes as imposed by customs
• UPS customs brokerage fees

Informal entry:

• Duties and taxes as imposed by customs
• UPS customs brokerage fees

Additional tariff resources to help prepare your shipment:

Harmonized Codes (HS codes), also known as tariff codes

• These codes are used internationally to classify traded products and determine the tariffs, duties and taxes due
• Identify the HS code for your goods here

Electronic Export Information (EEI) forms

• If you are shipping a single commodity that is valued over $2,500 you will be required to fill out an EEI form
• EEIs are filed electronically with Automated Commercial Environment (ACE) either by you or UPS on your behalf
• ACE is the U.S. Customs and Border Protection's (CBP) online platform
• ACE connects businesses with CBP and other federal agencies

As a shipper, how should I prepare my clearance documents to be compliant with the new regulations?

All shippers are urged to ensure that all information on the commercial invoice is accurate and detailed to facilitate a more efficient customs clearance process and avoid potential delays.

Please click here to learn more about the respective entry type based on shipment value, requirements and applicable fees for goods originating from China or Hong Kong SAR origins.