After announcing this morning a 30-day delay in implementation of tariffs on Mexico, and announcing late this afternoon a similar 30-day delay in implementation of tariffs on Canada, the U.S. government continues to move forward with implementation plans for an additional 10% tariff of products of China, beginning at midnight, even as Reuters is reporting that President Trump and Chinese President Xi Jinping are making plans to speak as soon as this week.
While the tariffs take effect for goods entered or released for consumption after that time, there is a small time-based exception for goods that were already loaded onto a vessel at the port of loading, or in transit on the final mode of transport prior to entry into the United States, as of 12:01 a.m. on February 1, if they are entered before 12:01 a.m. on March 7.
U.S. Customs and Border Protection (CBP) released a Draft Federal Register notice today with implementation instructions for collection of the tariffs, and CBP later published an accompanying guidance document.
According to these notices, the tariffs will apply to products of China and Hong Kong. De minimis entry without the tariffs will be prohibited, as will be drawback of these additional tariffs. Any FTZ admission for goods subject to the tariffs must be in privileged foreign status. Use of 9802 will still be permitted, but with the additional duty on the value added in China or Hong Kong.