Chinese Products Hit with 10% Tariffs

On February 1, 2025, President Trump signed Executive Order Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China.

On February 3, 2025, U.S. Customs and Border Protection (CBP) issued a Federal Register notice and CSMS# 63988468 – GUIDANCE: Additional Duties on Imports from China following the Executive Order signed by President Trump on February 1, 2025. Both documents provide critical details that importers will need to make customs entries for products made in China and Hong Kong starting February 4.

All goods that are products of China, including Hong Kong, will be subject to additional duties of 10% with a few exceptions. Excluded from the tariffs are donations, informational materials, accompanied baggage, some goods claiming Chapter 98, and products that qualify as in-transit according to the details of Harmonized Tariff Schedule of the United States (HTSUS) 9903.01.23 (see below).

The new tariffs will be applied using HTSUS 9903.01.20 and are in addition to all other duties, taxes, and fees, including the General Rate of Duty, Section 301 China, antidumping, and/or countervailing duties.

What We Know

Effective Date

Tariffs are effective at 12:01 am ET on February 4, 2025, for goods entered for consumption or withdrawn from warehouse for consumption.

Country of Origin

This applies to articles that are products of China, including products of Hong Kong.

Additional HTSUS

An additional tariff classification number is required to be used in conjunction with the primary HTSUS to properly assess the additional 10% duty rate.

• 9903.01.20:  All imports of articles that are products of China and Hong Kong, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, and other than products for personal use included in accompanied baggage of persons arriving in the United States – an additional ad valorem rate of duty of 10%.

Excluded Products

• 9903.01.21:  Articles the product of China and Hong Kong that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering.
• 9903.01.22:  Articles the product of China and Hong Kong that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.
• 9903.01.23:  Except for products described in headings 9903.01.21 and 9903.01.22, and other than products for personal use included in accompanied baggage of persons arriving in the United States, articles the product of China and Hong Kong that: (1) were loaded onto a vessel at the port of loading, or in transit on the final mode of transport prior to entry into the United States, before 12:01 a.m. eastern standard time on February 1, 2025; and (2) are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on February 4, 2025, and before 12:01 a.m. eastern standard time on March 7, 2025. 

Miscellaneous

• De Minimis: Products of China and Hong Kong are no longer eligible for de minimis ‘duty and tax-free’ treatment.  The filer/importer has the option of filing an appropriate formal or other informal entry and paying all applicable duties, taxes and fees.  This includes postal shipments.
• Drawback: No drawback is available with respect to the additional duties imposed pursuant to the Executive Order, as implemented in the Federal Register Notice.
• Chapter 98 – The additional duties imposed by heading 9903.01.20 shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule pursuant to applicable regulations of CBP, and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60.  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 China and Hong Kong), as described in the applicable subheading.  For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in China and Hong Kong), less the cost or value of such products of the United States, as described.

Actions Importers Should Take

De Minimis Shipments

An exceptional amount of low-value and small package shipments to the U.S. use a De Minimis type clearance, often with little importer involvement. You will need a Customs Broker like NNR Global Logistics to clear these shipments as a formal or informal entry. Communicate with your transportation providers and suppliers so that documents are turned over to your broker seamlessly.  

Customs Bonds

Continuous bonds can quickly max out with extensive additional duties and catch importers off guard. Be proactive by evaluating your goods and new annual duty outlay, including shipments previously cleared under De Minimis.

Paying Duties, Taxes, and Fees to U.S. Customs

For importers paying duties, taxes, and fees through their customs broker, evaluate if it is time to pay Customs directly through the Customs’ Importer ACH Debit program.  More duties and taxes could quickly eat away at your credit limit.

What’s Next?

It’s uncertain if the necessary Customs programming will be in place to apply these tariffs in time for the February 4 effective date. If that’s the case, our team will work to make timely corrections before the payment date. Otherwise, a Post Summary Correction may be required to add additional duties or exclusion codes to an entry. Our team will be communicating with affected Importers if additional information is needed to process an entry.

We will continue to update you as information becomes available.