Duties Delayed on Goods from MX and CA That Qualify Under USMCA

2) China Tariff Increases and Canada and Mexico Tariffs Effective March 4, 2025 – Previously Published in Geodis Market Advisory on March 4, 2025

President Trump announces increased duties on goods from China and implementation of duties on goods from Mexico and Canada.

Shortly before 5 p.m., on March 3, 2025, President Donald Trump issued an Executive Order (EO) raising emergency fentanyl tariffs on China and Hong Kong from 10% to 20%, citing insufficient efforts to curb drug smuggling.

In addition, on March 3, 2025, U.S Customs and Border Protection (CBP) issued notices regarding the implementation of 25% tariffs on most goods from Canada and all goods from Mexico.

Section Title: China / Hong Kong IEEPA Increase - Update to tariffs, increase from 10%-20% 

• As directed by the EO, CBP is updating the additional duties from 10% to 20% and implementing a new Chapter 99 HTSUS number.
• 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, will be assessed an additional ad valorem rate of duty of 10%. This applies to products of China and Hong Kong, loaded on vessel at port of loading or in transit on final mode of transit to US on or after February 1, 2025, and entered for consumption, or withdrawn from warehouse for consumption before March 4, 2025.
• 9903.01.24: 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, will be assessed an additional ad valorem rate of duty of 20%. This will now apply to goods that are the products of China and Hong Kong, loaded on vessel at port of loading or in transit on final mode of transit to US on or after February 1, 2025, and entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time March 4, 2025. Tariff available in ACE. 
  • Exclusions:
    • 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.
  • Foreign-Trade Zone – Goods that “are admitted into a United States foreign trade zone on or after 12:01 a.m. eastern standard time on February 4, 2025, must be admitted as "privileged foreign status" as defined in 19 CFR 146.41. Such articles will be subject, upon entry for consumption, to the duties imposed by this order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission into the United States foreign trade zone. 
  • Drawback not available for IEEPA tariffs. 
  • De-minimis continues to be available until further notice.

Section Title: Canada IEEPA Tariffs

• Effective on or after 12:01 a.m. eastern standard time on March 4, 2025, with respect to goods that are the product of Canada entered for consumption, or withdrawn from warehouse for consumption, the following HTSUS classifications and additional duty rates apply:
• 9903.01.10:  All imports of articles that are products of Canada, other than products classifiable under headings 9903.01.11, 9903.01.12, and 9903.01.13, and other than products for personal use included in accompanied baggage of persons arriving in the United States, will be assessed an additional ad valorem rate of duty of 25%. Tariff available in ACE.
• 9903.01.13:  Imports of energy or energy resources of Canada, as defined in section 8 of Executive Order 14156 of January 20, 2025 (Declaring a National Energy Emergency) as: 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, as defined by 30 U.S.C. 1606 (a)(3) will be assessed an additional ad valorem rate of duty of 10%. Tariff available in ACE.
  • Exclusions:
    • 9903.01.11:  Articles the product of Canada 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. Tariff available in ACE.
    • 9903.01.12:  Articles the product of Canada 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. Tariff available in ACE.
  • Free Trade Agreement - Products of Canada that are eligible for special tariff treatment under general note 3(c)(i) to the tariff schedule (e.g., the United States-Mexico-Canada Agreement), or that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99, are subject to the additional ad valorem rate of duty imposed by headings 9903.01.10 and 9903.01.13. 
    • The additional duties imposed by headings 9903.01.10 and 9903.01.13 that apply to products of Canada include both goods of Canada under the rules of origin set forth in part 102 (with a Country of Origin CA,) title 19 of the Code of Federal Regulations, as applicable, as well as goods for which Canada was the last country of substantial transformation prior to importation into the United States. 
    • (Update – as of March 7, 2025, goods that qualify under USMCA are exempt from duties)
    • (Update - A lower 10% tariff on any potash imported from Canada that falls outside the USMCA preference).
  • Foreign-Trade Zone - Goods that “are admitted into a United States foreign trade zone on or after 12:01 a.m. eastern standard time on March 4, 2025, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41.  Such articles will be subject, upon entry for consumption, to the duties imposed by this order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission into the United States foreign trade zone.”
  • Drawback not available for IEEPA tariffs. 
  • De-minimis continues to be available until further notice. 
  • Chapter 98 exemptions with exclusions.

Section Title: Mexico IEEPA Tariffs

• Effective on or after 12:01 a.m. eastern standard time on March 4, 2025, with respect to goods that are the product of Mexico entered for consumption, or withdrawn from warehouse for consumption, the following HTSUS classification and additional duty rate apply:
• 9903.01.01: All imports of articles that are products of Mexico, other than products classifiable under headings 9903.01.02 and 9903.01.03 and other than products for personal use included in accompanied baggage of persons arriving in the United States will be assessed an additional ad valorem rate of duty of 25%. Tariff available in ACE.
  • Exclusions:
    • 9903.01.02:  Articles the product of Mexico 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. Tariff available in ACE.
    • 9903.01.03:  Articles the product of Mexico 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. Tariff available in ACE.
• Free Trade Agreement- Products of Mexico that are eligible for special tariff treatment under general note 3(c)(i) to the tariff schedule (e.g., the United States-Mexico-Canada Agreement), or that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99, are subject to the additional ad valorem rate of duty imposed by headings 9903.01.01. 
  • (Update – as of March 7, 2025, goods that qualify under USMCA are exempt from duties).
  • (Update - A lower 10% tariff on any potash imported from Mexico that falls outside the USMCA preference).
  • The additional duties imposed by headings 9903.01.01 that apply to products of Mexico include both goods of Mexico under the rules of origin set forth in part 102, title 19 of the Code of Federal Regulations, as applicable, as well as goods for which Mexico was the last country of substantial transformation prior to importation into the United States. 
• Drawback not available for IEEPA tariffs. 
• De-minimis continues to be available until further notice. 
• Chapter 98 exemptions with exclusions. 

References:

Federal Register :: Notice of Implementation of Additional Duties on Products of Canada Pursuant to the President's Executive Order 14193, Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border

Federal Register :: Notice of Implementation of Additional Duties on Products of Mexico Pursuant to the President's Executive Order 14194, Imposing Duties To Address the Situation at Our Southern Border

Federal Register :: Further Amended Notice of Implementation of Additional Duties on Products of the People's Republic of China Pursuant to the President's Executive Order 14195, Imposing Duties To Address the Synthetic Opioid Supply Chain in the People's Republic of China

CSMS # 64299816 - UPDATE – Additional Duties on Imports from China and Hong Kong

CSMS # 64297292 - GUIDANCE: Additional Duties on Imports from Mexico

CSMS # 64297449 - GUIDANCE: Additional Duties on Imports from Canada