Tariff Resources Are Now Available

New tariffs are active and anyone engaged in importing goods needs to be aware of the new tariffs and how they may affect your business. This can be difficult because if you pull up the HTSUS today, it is not yet updated with these tariffs. We’ve summarized the upcoming tariffs imposing duties on goods from Canada, China (including Hong Kong) and Mexico.

The new tariffs went into effect on March 4 (today) at 12:01 am. They amount to a 25% tariff on products from Mexico or Canada, and a 20% tariff on products of China. The 20% tariff on Chinese products is a 10% increase from the tariff imposed a month ago, and is imposed in addition to the pre-existing 25% tariff on certain products (including most aircraft parts) that was imposed during the first Trump Administration (e.g. the additional China tariffs applied to most aircraft parts will be 45%).

There are some exceptions, but their applicability to the aviation industry will be tenuous. For Canada and Mexico, the exceptions include:

• donations of articles intended to be used to relieve human suffering, such as food, clothing, and medicine
• informational materials (like service bulletins)

The additional duties imposed by these tariffs generally will not apply if you are importing goods under a provision of chapter 98 of the HTSUS, except that some of the provisions most likely to be used by our community ARE subject to duty under the new tariffs. In particular goods entered under subheadings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80 are subject to the new tariffs.

The first three subheadings apply to goods sent abroad for repair or processing and then returned to the United States. The importer will need to pay a duty on the value of the repairs. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed in Canada, China (including Hong Kong), and Mexico. Note that subheading 9802.00.40 is for warranty repairs – the rules specify that the advancement in value will be subject to tariff even though the warranty repairs might be performed for free. Subheading 9802.00.60 is for processing of metal goods that are made in the U.S., exported for processing (e.g. a coating or plating or any other process), and then returned to the U.S. for further processing (the return is the import subject to a duty). In each case, the value of the repair or processing will be subject to the additional tariffs imposed on Canada, China and Mexico.

9802.00.80 is used when someone produces parts in the United States and then they are assembled abroad before being returned to the U.S. The dutiable value of the returned article is based on the value of the assembly minus the value of the individual parts from the U.S. This dutiable value will still be subject to the additional tariffs imposed on Canada, China and Mexico.

If you are importing aircraft parts from China, then check to see whether the additional 25% duty on certain products of China applies – it is under tariff code 9903.88.01.

You can click below to find the DRAFT Federal Register notices. These tariffs are expected to be published in the Federal Register on Thursday the 6th, but copies are currently available for public inspection:

• Canada Tariff (25%)
• China Tariff (increasing to 20%, in addition to other duties)
• Mexico Tariff (25%)