On August 13, 2019, it was announced that the US is delaying
imposing tariffs on over $300 billion dollars of imports from China until Dec
15th because of “health, safety, national security and other
factors” according to The Washington Post and other news sources.
The products include mobile phones, laptops, video game consoles, some
toys, computer monitors, and certain footwear and clothing. The Trump administration say’s this delay was
in part to avoid hitting US shoppers this Christmas.
The USTR released additional information and has split the list of goods into List 4A: https://ustr.gov/sites/default/files/enforcement/301Investigations/List_4A_%28Effective_September_1%2C_2019%29.pdf
and list 4B: https://ustr.gov/sites/default/files/enforcement/301Investigations/List_4B_%28Effective_December_15%2C_2019%29.pdf
Mr. Trump hinted that he was expecting something in return, suggesting
that China’s failure to “buy big” from the US farmers could be about to change.
It would be beneficial to review the items on both lists to determine if
any of your products will be subject to the tariffs and what the effective date
For more information on this issue click here: https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/august/ustr-announces-next-steps-proposed
were manufactured in the United States (US) and returned to the US are eligible
for free entry back into the country only if:
- They have not undergone
any advancement in value due to upgrades, repairs, improvements in condition or
any other processing which would elevate the value of the item.
- If the goods were subjected to
changes which improved the condition then you would be responsible for paying
duty on the fair market value of the labor or the item as it has
been changed. Chapter 9802 would cover
the repairs, changes value.
- **NOTE**, duty is only assessed on
the actual repair or improvement not on the entire value of the goods.
If the goods have not been subjected to any of the outlined processes above then you would file a CBP Form 3311, Declaration for Free Entry of American Goods Returned here. This would entitle you to free entry under HTS 9801.00.10 as duty free.
GOODS FOR WHICH DUTY HAS ALREADY BEEN
PAID RETURNING TO THE US
question which arises is “what if I have goods on which duty has already been
paid returning to the US”, for example a product sold that is defective,
damaged, doesn’t conform to a certain specification outlines by the buyer etc..
9801.00.26, HTS provides for articles, previously imported, with respect to
which the duty was paid, if
- They were exported within 3 years
after the date of such previous importation.
- Sold for exportation and exported to
individuals for their personal use, re-imported for the reason hat such
articles do not conform to sample or specifications
- Re-imported without having been
advance in value or improved in condition by any process of manufacture or
other means while abroad.
- Re-imported as personal returns from
those individuals; and re-imported by and for the account of the person who
exported the goods from the United States within one year of the exportation.
If all of
these conditions are satisfied, the goods are eligible to be re-imported duty
free. Also, if the goods are imported
under HTS 9801.00.26 they are not subject to visa or quota requirements as
the goods were originally exported with the benefit of drawback, the goods will
not be eligible for duty-free treatment upon re-import. The reason being, U.S. Note 1(a), Subchapter
I, Chapter98, HTS, states that subheading 9801.00.26 would not apply to an
article exported with the benefit of drawback.
CBP has the right to request proof from the exporting party that duty was paid
upon the previous import of the items.