Updated Guidance on Additional Duties for Imports from China and Hong Kong

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Feb. 26, 2025
By: Austin J. Eighan

Following President Trump’s Executive Order imposing additional 10 percent ad valorem duties on merchandise originating from China and Hong Kong (as discussed previously), U.S. Customs and Border Protection (CBP) has issued updated guidance outlining the procedural requirements for applying the additional duties, as well as the consequences for non-compliance.

Importers and customs entry filers were put on notice that CBP will reject entry summaries that fail to comply with the Executive Order. CBP’s instructions emphasize that non-compliance includes filing entry summaries without the additional duties for merchandise of China and Hong Kong under Harmonized Tariff Schedule (HTS) heading 9903.01.20 when applicable. Upon rejection, entry summaries must be resubmitted within two business days with payment. Otherwise, the importer of record may face liquidated damages, such as those provided for under 19 C.F.R. § 142.15 that could range up to the full bond amount for the applicable single entry bond or an equivalent amount for a continuous bond.

CBP’s guidance also verifies the reporting requirements applicable when filing an entry summary for merchandise subject to the additional duties. Reflecting the complexities of the current trade environment, when merchandise is entered under multiple HTS classifications, the following sequence is required:

1. Chapter 98 (if applicable)

2.     Chapter 99 number(s) for additional duties (if applicable)

3.     For trade remedies,

•        first report the Chapter 99 HTS for Section 301,
•        followed by the Chapter 99 HTS for IEEPA (i.e., the recently introduced additional duties on products of China and Hong Kong),
•        followed by the Chapter 99 HTS for Section 232 or 201 duties (if applicable),
•        followed by the Chapter 99 HTS for Section 201 or 232 quota (if applicable).

4.     Chapter 99 number(s) for REPLACEMENT duty or other use (i.e., MTB or other provisions)

5.     Chapter 99 number for other quota (not covered by #3) (if applicable)

6.     Chapter 1 to 97 Commodity Tariff

The merchandise’s entered value should be reported on the Chapter 1-97 HTS classification, unless Chapter 98 reporting provisions require differently.

CBP's guidance underscores the need for the trade community to stay vigilant and compliant with reporting requirements to avoid penalties and costly customs clearance delays. If you have questions on how to implement this guidance and ensure compliance with CBP’s instructions, please contact one of our attorneys at Barnes, Richardson & Colburn.