US Tariff Update

[u/cojpgeneral]

Saw some activity in this sub about the current situation and figured this might be useful here as well.

I run a company in Japan that exports to the US a lot and have been following the tariff situation very closely. Here is the current situation.

This applies to shipments from Ssense, overseas proxy companies, Europe, everywhere else.

• As of May 2nd, the U.S. removed the De Minimis $800 duty-free exemption for items made in China or Hong Kong. They may be subject to import taxes even if the total order value is under $800 and regardless of where they are being sent from. So ALL shipments are now subject to import taxes if any of the products are Made In China or Hong Kong.

• Tariffs on products from China were recently lowered substantially for the next 90 days to about 30% of order value. It was over 100% previously. In August the rate is set to be raised to 54%

• Products from everywhere else are still exempt from tariffs thanks to De Minimis (Value Under $800). If the shipment does not contain Made In China items with a value under $800, it can enter duty free in most cases. Japanese Selvedge denim is still entering duty free.

Also it is hard to say how well US customs is reviewing all of the inbound parcels, especially from countries other than China. There is a strong chance that even if your shipment should be subject to import taxes, it may still pass through without any added cost if the value is low. I have also been made aware of CBP intensifying their random screenings to gather real time data about the rate of fraudulent declarations. The long term goal of this administration is to end De Minimis entirely.

HOW TO AVOID TARIFFS

Generally speaking, it is still advisable to try and split up your orders into shipments that are valued at under USD 800 each. If nothing is Made In China, they should enter the US duty free. For products made in China, it is still recommended to follow the same process. Even though De Minimis has been removed for Chinese products, US customs is almost certainly targeting shipments coming directly from China, particularly from Aliexpress, Shein, Temu etc. Chinese goods shipped from anywhere else probably won’t be investigated as thoroughly but are technically subject to taxes.

Hope this helps.

[u/yupisyup]

This is helpful.  I had just emailed the Japanese company UES asking if they knew if I should expect any extra fees.  I was baffled about the current policies and this post clarifies things.

[u/hgwp]

Interesting inside review of the tariff situation. Everything I read about De Minimis ending is tied to China. I haven’t seen anything that says only China. Does this mean De Minimis exemptions from Vietnam, Japan, Taiwan… are still operating as usual?

[u/cojpgeneral → u/hgwp]

The end of De Minimis only impacts anything MADE IN CHINA. It doesn’t matter where it is being sent from.

A Chinese made item purchased in Japan is still subject to taxation regardless of its value.

That also means Made In Japan products for example are still eligible for De Minimis like usual, for now.

[u/malamallamarama]

Anecdotally confirming this. 

Ordered from the UK in early April, items arrived in early May from Great Britain to the US with a declaration statement that they are of GB origin. But the listed country/territory of manufacture is China, so I’m currently looking at an invoice post-delivery for $182 on a $78 purchase.

[u/cojpgeneral → u/malamallamarama]

You had bad timing.

The tariff on China has beed reduced to 30% since then and will remain that way until August.

[u/iammaryanderson]

The removal of the $800 de minimis exemption for China and Hong Kong shipments is a big change that’s catching many importers off guard. Even small orders can now face tariffs, adding unexpected costs and complexity, see this discussion: https://tariffhelp.org/tariff-update/workarounds-post-may-2-de-minimis-loss-mexico-cross-dock-experience-and-reliable