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Lawyers: 301 notice gives leeway for goods already exported
Source
American Shipper
Post Date
05/17/2019

The Section 301 tariff increase across $200 billion worth of goods from China announced Wednesday will take effect for goods exported and entered for consumption after 12:01 a.m. Friday, and it appears that the increased rate will apply only to goods on which the export and entry take place after that time, customs lawyers reported after the notice was released.

“It appears that in order for the 25% duty rate to apply, the imported merchandise must be entered for consumption after 12:01 a.m. ET Friday morning AND have been exported to the United States on or after Friday, May 10th,” Baker & McKenzie customs lawyer Ted Murphy wrote in a blog post. “So an entry of merchandise included on List 3 exported from China prior to May 10th would not be subject to the 25% duty rate even if it was entered after 12:01 a.m. Friday (it would still be subject to the 10% rate).”

Unlike previous Federal Register notices imposing Section 301 duties, the latest tariff notice includes two correlated conditions for the tariff increase to take effect, Murphy noted.

Specifically, the notice states the increase is “effective with respect to goods (i) entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Saylight Time on May 10, 2019, and (ii) exported to the United States on or after May 10, 2019.”

Further, USTR verbally confirmed to a Sandler Travis trade attorney that the use of “and” in the notice is intentional and would provide a brief respite from the tariff increase for goods exported before 12:01 a.m. Friday, Sandler Travis reported Thursday.

“However, [Sandler Travis] will continue to monitor government notices and instructions for consistency with this intent,” the law firm report said.


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