Market Letters

CHB Update 05/04/20

To Our Valued Customers:

The Covid-19 situation is constantly evolving and we want to continue to advise what we are seeing and experiencing in the market. At Laufer, we are committed to providing you with information as quickly as possible, understanding, of course, that events are quite fluid and changing rapidly.

Here is a short list of what we are seeing this week:

Duty Deferral: On April 18 the President signed an Executive order allowing 90 day duty deferral to finally become a reality. The payment delay applied to goods which entered the US in the months of March and April for qualifying importers. On April 30, CBP noted that there are no plans to extend duty deferral in to May. They stated that no instructions have come from the White House to continue the duty deferral program.

Section 301 and 232 Tariffs: Section 301 and 232 tariffs are still being collected on all applicable imports. Exclusions to Section 301 tariffs, however, are continuing to be granted on a rolling basis which is providing importers some relief on particular products. On April 24, the USTR announced a list of new exclusions for products on List 3, which covered 157 separate requests. These exclusions will allow importers to file for retroactive refunds of duties already paid, and will remain in effect until August 7, 2020. To verify exclusion qualification, importers should check the list very carefully against their product details and work with their customs broker to prepare the associated filings.

Additionally, 8 exclusions issued in 2019 which were set to expire on April 18th, have been extended for another year. 13 others expired as planned and the additional tariff percentage is assessed on applicable imports once again.

We truly appreciate all your support as we navigate this event together. Should you need any additional information or guidance, please feel free to contact your Laufer sales or team member.