In recent developments, the U.S. government has made a significant announcement regarding China tariff exemption policies that affect imports from China and Hong Kong. Initially, there were plans to revoke the T86 exemption for goods valued under $800 and impose a 10% additional tariff. However, as of February 7, the government has decided to temporarily suspend these changes. This decision brings relief to many cross-border sellers and freight forwarders who have been under immense pressure due to these proposed tariffs.
Overview of the New U.S. Policy
The U.S. Customs and Border Protection (CBP) had initially planned the following:
- Cancellation of the T86 Exemption: This policy would have required that even goods valued under $800 be subject to normal customs declaration and duties.
- 10% Additional Tariff: All products from China (including Hong Kong) would incur an additional 10% tariff on top of existing duties, significantly increasing customs costs.
However, the recent announcement means:
- The T86 exemption remains in place, allowing for tax-free imports of goods valued under $800.
- There will be no immediate additional 10% tariff applied to these goods.
This temporary reversal offers much-needed breathing room for sellers facing high customs and tariff pressures.
Refunds for Handling Fees and Tariff Deposits
In light of these policy changes, we at Shipbear are committed to supporting our clients by taking decisive action:
- Cancellation of Handling Fees: Effective immediately, we will no longer charge any handling fee for customs clearance on packages exported from China to the U.S.
- Elimination of Tariff Deposits: We will also stop requiring the 30% tariff deposit, now executing customs procedures based on the latest U.S. regulations.
Staying Vigilant: What This Means for Sellers
While the T86 exemption remains intact for now, sellers must remain vigilant. Here are some key points to consider:
1. Ensure Accurate Customs Declarations
It’s crucial to maintain the accuracy of your customs data. Make sure that:
- Product names, HTS codes, declared values, and sales links are complete and correct to avoid delays or penalties.
2. Monitor Policy Updates
U.S. customs policies can change rapidly. Sellers should regularly check for updates from the CBP and stay informed through logistics providers.
3. Adapt Logistics and Pricing Strategies
Given the uncertainty surrounding tariff policies, sellers should assess logistics costs and pricing strategies carefully. Being proactive will help mitigate risks associated with future changes.
Conclusion
The temporary pause on the T86 exemption policy is a significant relief for sellers navigating the complexities of U.S. import tariffs. While this decision grants valuable time for adjustment, it’s imperative to enhance compliance capabilities in preparation for potential future changes.
At Shipbear, we’re here to help you navigate these challenges. Our all-in-one dropshipping solution is designed to streamline your logistics and minimize duty-related costs, allowing you to focus on growing your business. Let’s work together to ensure your operations remain smooth and successful!
Stay informed and prepared as the situation evolves, and feel free to reach out to us for any assistance you may need.
