Will Cargo Will Beat The 25% January 1 Deadline?


With November just around the corner, importers are arranging departures that will be starting to approach late December ETA into the States. East Coast shipments being booked out through November are in the ‘danger zone’ for late December ETA and the question on many importer’s minds is “will I beat the new tariff?”

This concern, a valid consideration may be illusive. We want to provide a clear answer according to our CBP entry experts.

When is a tariff applied to my goods? The short answer is when the goods are available for commerce.
What does this mean? Well, it means that the determination on whether your cargo that is scheduled to arrive at the end of December will be hit with a 10% or a 25% tariff (assuming you are subject to section 301) depends on several factors.

Cargo is available for commerce when it is officially ‘Arrived’ to The United States. This means the steamship carrier has flagged the cargo as Arrived, after discharge from the vessel. Arrived status cannot happen if there are any holds on your product. Flagged for customs exam? Agricultural Hold? Freight Hold? These holds would spell disaster for products arriving in late December as it could mean full release would be delayed until January.

Customs Brokers can pre-clear cargo before the vessel ETA also, however the final tariff is still directly determined by the ‘Arrived’ date of the cargo.

Chain Logic will continue to monitor this and other topics. Check back for updates!