02/03/2025
Market Advisory: Appendix, February 3, 2025
On February 1, 2025, President Trump announced major changes to U.S. tariff policies affecting trade with Canada, Mexico, and China. This is an advisory related to details of customs changes.
Technical Details and HTS Classifications
For detailed information about HTS classifications, Chapter 98 provisions, and specific entry requirements, please see the appendix below.
Appendix: Detailed Entry Requirements
Goods of Canada Origin:
- Please note that tariffs have been suspended for a month between Canada and the U.S.
- Under the Order, de minimis has been revoked. A formal entry will be required.
- Drawback is not allowed on CA goods subject to the duties imposed in the Executive Orders
- The duties within the Orders applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on February 4, 2025.
- Goods from Canada entered for consumption, or withdrawn from warehouse for consumption, that were loaded on a vessel at the port of loading or in transit on the final mode of transport before 12:01 a.m. eastern time on February 1, 2025 will not be subject to the tariffs if they are entered on or after February 4, 2025 and prior to February 7, 2025.
- CA goods subject to 25% tariffs will enter under 9903.01.10
- CA energy goods and resources (crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals), subject to the 10% tariffs, will enter under 9903.01.13
- CA goods that are exempt because they were in transit prior to February 1, 2025 and arrived on or after February 4, 2025 and prior to February 7, 2025 will enter under 9903.01.14
- CA donations and articles of food, clothing, and medicine, intended to be used to relieve human suffering will enter under 9903.01.11
- CA 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 will enter under 9903.01.12
- Tariffs will not apply for goods that qualify under duty-free provisions of Chapter 98 except for goods of 9802.00.40, 9802.00.50, 9802.00.60 and 9802.00.80. 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), as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in Canada), less the cost or value of such products of the United States, as described
- Goods eligible for USMCA under General Note 3 and goods eligible for temporary duty exemptions/reductions under Subchapter II to Chapter 99 will be subject to the 25% and 10% tariffs under 9903.01.10 and 9903.01.13
Goods of China and Hong Kong Origin:
- Under the Order, de minimis has been revoked. A formal entry will be required.
- Drawback is not allowed on CN or HK goods subject to the duties imposed in the Executive Orders
- The duties within the Orders applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on February 4, 2025.
- Goods from China and Hong Kong entered for consumption, or withdrawn from warehouse for consumption, that were loaded on a vessel at the port of loading or in transit on the final mode of transport before 12:01 a.m. eastern time on February 1, 2025 will not be subject to the tariffs if they are entered on or after February 4, 2025 and prior to March 7, 2025.
- CN and HK goods subject to 10% tariffs will enter under 9903.01.20
- CN and HK goods that are exempt because they were in transmit prior to February 1, 2025 and arrived on or after February 4, 2025 and prior to March 7, 2025 will enter under 9903.01.23
- CN and HK donations and articles of food, clothing, and medicine, intended to be used to relieve human suffering will enter under 9903.01.21
- CN and HK 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 will enter under 9903.01.22
- Tariffs will not apply for goods that qualify under duty-free provisions of Chapter 98 except for goods of 9802.00.40, 9802.00.50, 9802.00.60 and 9802.00.80. 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
- Goods eligible for temporary duty exemptions/reductions under Subchapter II to Chapter 99 will be subject to the 10% tariffs under 9903.01.20
Appendix: Canadian Surtax / Tariffs Order 2025 in Response to U.S. Tariffs
If the US raises tariffs on Canada, the Canadian government is likely to increase surtax / tariffs on U.S. goods in response to the U.S. increasing tariffs:
- 25% tariffs / surtax on $30 billion of U.S.-origin goods
- Calculated on the value for duty (VFD) in Canadian funds
- Applies only to goods of U.S. origin; proof of origin required
- Affected products include orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper.
- There are plans to expand surtax to additional $125 billion in U.S. goods pending public comment
- Effective from February 4, 2025
- Applies to both high and low value commercial and personal importations
- Transit goods: Canadian surtax will not apply to U.S. goods in transit on the implementation date
- A full list of affected goods is available here
This information is for general informational purposes only, and does not constitute, and should not be considered, to be legal advice or customs advice specific to your company’s circumstances. The information herein is presented without any representation or warranty, including as to the accuracy or completeness of the information presented.
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