Implementation of the IEEPA (International Emergency Economic Powers Act) 25% tariffs on Mexico and Canada were released. Effective 12:01 a.m. ET, March 4, tariffs of 25% will be assessed on products of Canada or Mexico entering the U.S.; except for energy products from Canada which will be assessed a 10% duty.
Note that the tariffs apply to “products of Mexico/Canada”.
Products Excluded from Additional Tariff :
The additional duty will not apply to:
- 1. Goods that are for personal use.
- Goods entered under Chapter 98 HTSUS including:
9802.00.40 or 9802.00.50 (repairs/alterations) tariffs apply on value added in Mexico/Canada
9802.00.60 (metal articles processed abroad) tariffs apply on value added in Mexico/Canada
9802.00.80 (assembly of US components) tariffs apply on value added in Mexico/Canada
9801 goods exported from the US and returned from Mexico/Canada not subject (even if Mexico/Canada origin)
Other Chapter 98 goods are excluded
- 3. Donations of food, clothing and medicine intended to relieve human
suffering (claim HTSUS 9903.01.02 for the exemption for Mexico and 9903.01.11
for the exemption for Canada)
- 4. Merely informational materials (claim HTSUS 9903.01.03 for
the exemption for Mexico and 9903.01.12 for the exemption for Canada)
No drawback is allowed for these tariffs. Duty drawback is allowed for other eligible duties paid.
There is no grace period for goods in transit.
Section 321 de minimize goods are not impacted until such time as Commerce establishes a system to collect the tariffs.
FTZ Goods
Products of Mexico/Canada admitted to an FTZ after 12:01 a.m. ET on March 4
must be admitted in privileged foreign status. Upon entry for consumption into
the U.S., they will be subject to the rate of duty in effect at the time of admission
into the zone. Goods eligible for admission to an FTZ under domestic status are
exempt from the tariffs
