Ask An Attorney - Trump IEEPA Duties
Trump IEEPA Duties - Federal Register Notices
Federal Register notices for Canada and China have been submitted by CBP to the Federal Register for publication on February 5th. As of this writing, enforcement against Mexico and Canada has been deferred for one month. The tariffs against China have not been delayed.
The highlights of the Canada and China Notices:
1) 25% duty applies to all "products of Canada" (even if currently duty free) except certain energy products, which will have a 10% duty rate;
2) 10 % duty applies to all "products of China" even if currently duty free;
3) before the one month deferral, the Executive Order and the draft Federal Register Notice state that the duties apply to goods entered or withdrawn from warehouse for consumption on or after February 4th at 12:01 AM;
4) on February 7th, President Trump reversed the "no-321" entry prohibition for de minimis shipments from China, pending a review by the Department of Commerce;
5) no drawback will be permitted for these duties;
6) the orders include the usual FTZ limitations precluding entry of goods into a FTZ, manufacturing them into a new product, then withdrawing the finished product at its duty rate;
7) the duties don't apply to goods loaded on a vessel before the effective time, or en route on shipment's final transport mode at that time, subject to certification requirements;
8) the duties don't apply to certain Chapter 98 provisions.
Canada unique materials in the Federal Register Notice:
1) Lists the energy products given 10% duty;
2) Confirms duty is applicable to USMCA preference goods;
3) Applies to goods deemed Canada origin under 19 CFR 102 as well as goods considered substantially transformed in Canada. We assume this origin rule would be applied to Mexico as well when/if that occurs.
China unique materials in the Federal Register Notice:
1) Applies to China and Hong Kong origin goods;
2) Section 301 goods eligible for 301 duty exclusions are still subject to this 10% China duty.
Courtesy of Meeks, Sheppard, Leo & Pillsbury LLP