On February 11, 2025, the President issued a proclamation regarding the importation of steel and aluminum articles, increasing tariff rates to 25% from all countries. As part of that proclamation, it was announced that there would be expanded 25% tariffs to include key downstream products (derivatives) for both steel and aluminum. The Annex containing those products has been drafted and is expected to be officially published in the Federal Register on February 18, 2025.

Key Points:

• There are 167 new codes for steel downstream products (derivatives) subject to the 25% tariff referenced in this proclamation (covering 4 different chapters of the HTSUS).

• There are 123 new codes for aluminum downstream products (derivatives) subject to the 25% tariff referenced in this proclamation (covering 11 different chapters of the HTSUS).

To read the draft Federal Register, and access our Excel listing of HTS affected, click the links below:

‍

For February, we are highlighting Jacquelyn Bakker, our CHB Manager in the JAS Chicago office.  Jacqulyn started her career in the industry in 2012 in an accounting role before moving into the brokerage side in 2014.  In her words, that’s when she “found my niche.”  Jacquelyn joined JAS in 2018.  After being named as the Brokerage Supervisor, Jacquelyn decided to take on the “daunting task” of obtaining her broker’s license.  After 3 months of studying, Jacquelyn was able to pass on the first try!  Jacquelyn manages a team of 6 entry writers in our Chicago branch and CHB manager.  Jacquelyn is detail oriented and attentive to the needs of her clients internally and externally!

Jacquelyn has a 19-year old daughter, loving fiance and 2 dogs at home.  She enjoys family time BBQing in the summer, taking the dogs for longs walks, playing Pokemon Go with family and seeing movies in the theater.

Jacquelyn is yet another great example that People Make the Difference!

‍

CBP is leading global efforts in combating forced labor by imposing import bans on goods produced with forced labor.  This has inspired international action, including the European Union’s adoption of similar measures and the inclusion of forced labor prohibitions in the USMCA.  CBP’s actions have also driven labor reforms, notably in Malaysia, which launched a National Action Plan on Forced Labor and ratified an international protocol to combat forced labor.  These advancements demonstrate CBP’s significant influence in shaping global supply chain accountability and driving positive change.

‍

Read more about it by checking out the link below:

‍

CBP announced on January 16, 2025 an NPRM (Notice of Proposed Rulemaking) related to “illicit low-value shipments.”  Section 321 (a)(2) of the Tariff Act of 1930 allows for duty and tax exemptions on low-value shipments entering the U.S., such as gifts, personal goods, and other merchandise valued at $800 or less.  The exemption, first introduced in 1938, aimed to reduce the burden of collecting duties on minimal-value imports.  However, the surge in e-commerce and the increase in low-value shipments has made it difficult for CBP to effectively manage and target high-risk shipments, such as illicit drugs.  To address this, CBP is proposing enhanced data requirements for low-value shipments to improve enforcement and targeting.

Read more by checking out the link below:

‍

CBP (Customs and Border Protection) published an interim final rule (IFR on January 17, 2025, to update regulations under 19 CFR 182, related to USMCA.  This IFR addresses various areas, including automotive goods, textile and apparel, duty-deferral programs, and recordkeeping.  Specific regulations are introduced for vehicle certifications, requiring producers to meet labor value content, steel, and aluminum purchasing requirements.  It also updates textile and apparel goods provisions and expands USMCA drawback rules. This IFR takes effect on March 18, 2025, with a 120-day compliance delay for vehicle certifications.

To read more details check out the link below:

‍

Are you leaving money on the table?  If your company imports goods that are later exported, you could be eligible for significant refunds on customs duties, taxes and fees through the Duty Drawback Program.

Join our free webinar to learn how to navigate the complexities of duty drawback and maximize your savings opportunities!

The webinar will be on March 6, 2025 at 2pm Eastern.  To register, click the link below.

‍

On February 1, 2025, under the International Emergency Economic Powers Act (IEEPA), the administration is implementing 10% additional tariff on imports from China.  

Originally, Canada and Mexico were to have 25% tariffs imposed, however after late meetings between the President of Mexico and the Canadian Prime Minister, news outlets are reporting there will be a 30 day pause on these potential tariffs.

More details include that goods admitted to FTZs must be admitted under privileged foreign status, no duty drawback will be allowed, and there will be no section 321, or de minimis shipments allowed for products of China.

Additional details will be shared as soon as available.  As this is a fast-changing situation, all details are subject to change.

‍

‍

Check out our Client Advisory: