We have just learned that the programming issues that we reported on yesterday have now been corrected. The programming revolved around the implementation of a new Chapter 99 Harmonized Tariff Schedule (HTS) number to capture a 10% duty rate for shipments entered for consumption after 5/10, but exported before 5/10.

The CSMS notice also indicated that a mysterious end date has been added to the programming—a date not captured in the published Federal Notice. It reads as follows:

  • For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and before June 1, 2019, and exported to the United States before May 10, 2019, HTS 9903.88.09 should be reported. This captures 10% duty.
  • The subject imports of China that are entered into the United States on or after June 1, 2019 are subject to the 25 percent rate of additional duty under HTS 9903.88.03 and 9903.88.04.

We suspect an end date was necessary to simplify the programming.

This change means the following:

  • Anything that exports BEFORE 5/10 and arrives BEFORE 6/1 at the port of unlading is dutiable at 10%
  • Anything that exports BEFORE 5/10 and arrives AFTER 6/1  at the port of unlading is dutiable at 25%
  • Anything that exports AFTER 5/10 is dutiable at 25%

From Customs’ perspective, the date of exportation means the actual date the merchandise finally leaves the country of exportation for the U.S.

Shapiro will continue to monitor and provide status updates on our Section 301 Tariff News page as they become available.