JAS USA COMPLIANCE

News & Insights from JAS Worldwide Compliance

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Feds Seeking New Ideas

July 6, 2016

The Department of Homeland Security recently prolonged the deadline "for complying with a congressionally mandated requirement of 100 percent scanning of U.S.-bound maritime cargo containers," stated an article by the Sandler, Travis & Rosenberg Trade Report. However, DHS is also requesting new ideas on how to meet the requirement.

From the original article:

"The SAFE Port Act of 2006 requires all maritime cargo containers admitted into the U.S. to be scanned through non-intrusive inspection and radiation detection equipment in a foreign port prior to being loaded on a U.S.-bound ship. The original deadline for achieving this goal was July 1, 2012, but DHS has now invoked three successive two-year waivers, the latest running through 2018. Officials have said compliance is virtually impossible with available resources and technology and conflicts with the department’s general approach to risk management, which seeks to focus scarce inspection resources on the highest-risk containers. Most recently, DHS Secretary Jeh Johnson told Congress in May 2014 that the department’s 'ability to fully comply with this unfunded mandate of 100 per cent scanning, even in the long term, is highly improbable, hugely expensive and, in our judgment, not the best use of taxpayer resources to meet this country's port security and homeland security needs.'"

Read the Original Article

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Latest News

Reciprocal

The President has announced broad reciprocal tariffs.  The reciprocal tariffs will vary by country depending on existing tariffs for US goods exported to those countries.

The President shared a chart showing various rates applied to US goods to countries and the reciprocal tariff that will be applied to goods from those countries.  Examples included China with overall tariff percentage of 67% on US goods, which the US will be applying a reciprocal tariff of 34%.  Other examples include Japan charging 46% on US goods and the US now applying a 24% reciprocal tariff.  JAS will post the full list once it is officially published.

Other deveopments today include a list of specific HTS codes for automobiles subject to the 25% tariff effective April 3.  Auto parts will be implemented on May 3.  

Finally, aluminum containers under 7612.90.10 and beer under 2203.00.00 have been added to the aluminum derivatives list.

Additional updates will follow once they are available.

Updates 3/27/25

In an Executive Order published on March 24, 2025, the administration has announced 25% tariffs on countries that import oil from Venezuela.  The order states that “On or after April 2, 2025, a tariff of 25 percent may be imposed on all goods imported into the United States from any country that imports Venezuelan oil...”  These duties will be supplemental to duties already imposed such as IEEPA, Section 232, Section 301 China tariffs, etc.

Additionally the President signed an executive order on March 26 applying Section 232 duties to automobiles, light trucks and auto parts (such as transmissions/powertrain parts, engines and engine parts etc.).  The rate of duty will be 25% and this will go into effect starting April 3.  It will not apply to USMCA parts until a process has been established to account for the non-US content of auto parts.  If additional parts are to be tariffed, there will be a Federal Register notice as soon as practicable after the Commerce Secretary’s decision, and the tariffs will be collected one day after that notice.

Finally in response to a question yesterday, the President indicated that Lumber Tariffs may come starting on April 2.

Tariffs-Updates

Tariffs on Imports

Note this information is subject to change

Canada

• 25% IEEPA tariff on goods not meeting USMCA (U.S.-Mexico-Canada Agreement) rules of origin.

• 10% IEEPA tariff on potash not meeting USMCA (U.S.-Mexico-Canada Agreement) rules of origin.

• 10% IEEPA tariff on energy not meeting USMCA (U.S.-Mexico-Canada Agreement) rules of origin.

• IEEPA tariffs became effective March 4, 2025.

• March 7, 2025 the carve out for USMCA became effective.

• USMCA qualified goods can be entered without the additional IEEPA rate.

• There’s no mechanism to recover duties paid from March 4 through March 6 on USMCA goods.

• If eligible for USMCA based on USMCA rules of origin, then IEEPA tariff will not apply.

Mexico

• 25% IEEPA tariff on goods not meeting USMCA (U.S.-Mexico-Canada Agreement) rules of origin.

• IEEPA tariffs became effective March 4, 2025.

• March 7, 2025 the carve out for USMCA became effective.

• USMCA qualified goods can be entered without the additional IEEPA rate.

• There’s no mechanism to recover duties paid from March 4 through March 6 on USMCA goods.

• If eligible for USMCA based on USMCA rules of origin, then IEEPA tariff will not apply.

China

• IEEPA 20% tariff on all imports.

• Was initially 10% but was increased to 20% on March 4, 2025.

• Started on February 4, 2025.

• Goods on final leg destined to the US prior to February 1 and arriving before March 7, 2025 were eligible for an exemption on the IEEPA tariff.

• Existing Section 301 tariffs still in affect on top of IEEPA tariffs.

• Tariffs stack including IEEPA, 301 and 232 tariffs.

• Existing Section 301 exclusions are still in effect until their expiry date.

Section 232: Steel & Aluminum Tariffs

• All non-US steel and aluminum tariffs are 25% regardless of origin

• 25% tariffs expanded to include derivative products.

• No more exclusion process

• No Drawback allowed

• End of quota agreements with affected countries

• FTZ admissions must be in Privileged Foreign Status

• Listing of affected HTS codes and their corresponding chapter 99 program tariff can be found at the link below.

• Automobiles, aluminum containers and beer added to Section 232 25% tariffs

International Emergency Economic Powers Act (IEEPA)

• Grants the U.S. President authority to regulate commerce in response to national emergencies.

• Used to impose economic sanctions, restrict trade, or freeze assets of individuals, companies, or governments.

• Aims to protect U.S. national security and foreign policy interests.

• No drawback allowed

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