- Shifting logistics from how a company routes their freight makes a significant difference when it comes to protecting it from paying the 7-25% 301 Chinese tariffs, for goods that are only transiting through the USA.
- Having timely and proper support is critical.
After July 2016, many companies were caught off guard when they started to pay the 301 China Tariffs for goods that had always been duty and tariff-free. While the duties did not change, the added tariff was being imposed for certain Chinese-origin goods.
It is important to note that, at this time, many goods were en route to the USA and moving fast. In some cases, it was not until after companies cleared, or otherwise made entry, that it was discovered the China 301 duties were applied and had to be paid or paid upon receipt of the bill.
Many of our clients came to us to learn why the 301 tariffs were being applied and what options they had to remedy them. We provided informational bulletins and started to meet with our clients individually to help give them options for compliance. We instructed our clients on how to route freight to protect it from paying the 301 tariffs in a compliant and efficient manner.
Some of the feedback we received:
“Thank you, CASAS, for helping us figure out these 301 Tariffs so that we can continue to be competitive and not pay what we don't need to legally.”
“In a 30-minute call with the CASAS folks, we figured this out and managed the impact that was already felt for two months, and now we have a viable solution. Move our China freight in-bond to the Tijuana manufacturing site.”
“The CASAS bulletin prompted our purchasing team to ask questions and alerted them to ask what was being paid—the 301 Chinese tariffs and how to re-route freight or budget for the tariff expenses that no one was monitoring to account for 25% increase in our expenses.”
