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ST&R Trade Advisory: USMCA Qualifying Goods Exempt from 25% IEEPA Tariffs
The following analysis was provided by NCBFAA Legislative Advisor Nicole Bivens Collinson of Sandler, Travis & Rosenberg, P.A.
Sandler, Travis & Rosenberg, P.A. (ST&R) notes that today the President amended his IEEPA tariffs of 25% on Mexico and Canada.
For Mexico:
- The effective date is 12:01 a.m. ET, March 7.
- Any Mexican origin goods that qualify for free entry under the USMCA will NOT be subject to the additional 25% duties.
- Potash that does not qualify for duty free treatment under the USMCA will be subject to a 10% duty (in lieu of the 25% duty).
- There is no end date for this exemption for FTA qualifying goods.
For Canada:
- The effective date is 12:01 a.m. ET, March 7.
- Any Canadian origin goods that qualify for free entry under the USMCA will NOT be subject to the additional 25% duties.
- Potash that does not qualify for duty free treatment under the USMCA will be subject to a 10% duty (in lieu of the 25% duty).
- There is no end date for this exemption for FTA qualifying goods.
So net effect is, we had tariffs for three days on all Mexican and Canadian goods.
The exemption is NOT retroactive, thus those goods imported during the 3-day period are stuck, subject to tariffs.
While reports had said the exemptions would only be until April 2, there is no end date on the amendments.
Note: We have not yet seen the Federal Register notice which may contain additional clarifying information.
As you can tell, these tariffs are a very fluid issue. We will continue to update you as it develops.
If you have any questions, please send them to tariffs@strtrade.com.
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The NCBFAA Customs Committee and Counsel, meanwhile, expect CBP to issue a CSMS shortly that will provide guidance to the trade on the implementation of these recent IEEPA tariff changes.
Meanwhile, NCBFAA will continue to keep our members updated about the U.S. tariffs through the Monday Morning eBriefing and eblasts, and a dedicated IEEPA Tariffs webpage on our website.
Attention: The Monday Morning eBriefing (MMeB) and other communications of the NCBFAA are the exclusive property of the Association. Unauthorized use by any person or firm which is not a member in good standing is strictly prohibited.
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