Special Edition - New China Tariffs Announced
NEW CHINA TARIFFS = NEW THREAT OF BOND INSUFFICIENCIES
Recently, on May 13, 2024, the Biden Administration announced new or increased tariffs on goods manufactured in China. The updated Section 301 tariffs are likely to be implemented before the end of 2024, although could be as early as this September.
As a result, an increase in bond insufficiencies from Customs, forcing Customs bonds to be terminated prematurely, is highly likely.
Below are the products impacted by the new tariffs along with the expected additional duty rate.
|
Commodity Description
|
Section 301 Duty Rate
|
|
Electric vehicles
|
100%
|
|
Semiconductors
|
50%
|
|
Solar cells
|
50%
|
|
Syringes and
needles
|
50%
|
|
Battery parts
(non-lithium-ion batteries)
|
25%
|
|
Facemasks
|
25%
|
|
Lithium-ion
electrical vehicle batteries
|
25%
|
|
Lithium-ion
non-electrical vehicle batteries
|
25%
|
|
Medical
gloves
|
25%
|
|
Natural
graphite
|
25%
|
|
Other
critical minerals
|
25%
|
|
Permanent ma
nets
|
25%
|
|
Ship to shore
cranes
|
25%
|
|
Steel and
aluminum products
|
25%
|
Importers of these products are encouraged to forecast their upcoming duties, taxes and fees and discuss with their Customs Broker to ensure their bond is sufficient to avoid bond termination by Customs. This proactive approach will reduce the risk of an untimely bond termination, which can disrupt the supply chain. For information on how to properly calculate the necessary Customs bond limit, please contact IB&M at bond@intlbondmarine.com.