January 4, 2021
Tariff Exclusion Expiry: Which U.S. Duty Relief and Tariff Exclusion Programs Expired at the End of 2020
American companies will have to pay higher taxes on some of the products they import from China, as tariff exclusions expired at midnight on December 31, 2020.
The U.S. Governmet placed tariffs on more than $360 billion of Chinese goods beginning in 2018, prompting thousands of companies to ask the administration for temporary waivers excluding them from the levies. Companies that met certain requirements were given a pass on paying the taxes, which range from 7.5 to 25%.
The bulk of the exclusions, which could amount to billions in revenue for businesses based in the United States, were set to automatically expire at midnight December 31, 2020. After that, many companies will have to again pay a tax to the government to import a variety of goods from China, including textiles, industrial components, and other assorted products.
Some exclusions have been extend until March 31 for a small category of medical care products, including hand sanitizer, masks and medical devices, to help with the battle against the coronavirus pandemic.
Effective January 1, 2021, the following duty relief programs and temporary measures expired:
- Generalized System of Preferences (GSP) Renewal
- China 301 Tariff Exclusions
- Miscellaneous Tariff Bill (MTB) Suspensions
If you have any questions regarding the above duty relief programs and how their expiry impacts your business, please get in touch.
(Source: The New York Times)