China Tariffs: Freight Forwarding & Customs

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U.S. tariffs on Chinese goods can significantly impact the customs clearance process, especially if you're importing products from China. Here’s how:

1. Increased Costs Due to Tariffs

• If your goods fall under the Section 301 tariffs imposed by the U.S. government on Chinese imports, you may have to pay additional duties, which can range from 7.5% to 25% or more.

• Higher tariffs mean higher landed costs, affecting profit margins.

  
  

2. Longer Clearance Process

• Additional Scrutiny: Customs may take longer to process shipments due to increased inspections and compliance checks.

• Tariff Exemptions & Exclusions: If you're applying for an exclusion from tariffs, the clearance process can be delayed until the exemption is verified.

  
  

3. Changes in HS Codes & Reclassification

• Customs may reclassify products under different Harmonized System (HS) codes to determine if they fall under tariffed categories.

• Importers need to ensure accurate product classification to avoid unexpected duty charges or penalties.

  
  

4. Customs Bond & Increased Costs

• If your import value increases due to tariffs, you may need a higher-value customs bond.

• Some importers choose to work with customs brokers to navigate changing regulations, adding to costs.

  
  

5. Risk of Retaliatory Measures

• China may impose retaliatory tariffs on U.S. exports, affecting businesses relying on China as a re-export hub.

How to Mitigate These Impacts

• Re-evaluate suppliers – Consider alternative sourcing from countries like Vietnam, India, or Mexico.

  
  

• Use Foreign Trade Zones (FTZs) – Store goods in an FTZ to defer duty payments.✅ Seek tariff exemptions – Check if your products qualify for tariff exclusions or reclassification.

  
  

• Plan for longer lead times – Account for potential customs delays in your supply chain.

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