USPTI Market Update Aug 21, 2019
Trans-pacific Import trading conditions are being impacted by uncertainty in duties and in general a concern over general economic conditions.
Although volume is not anticipated to peak as substantially as in the past, carriers are voiding sailing which impacts supply and demand on a weekly base. Although void sailing could be considered an artificial mechanism to impact short term capacity one should note that the new emission standards for ships will be implemented Jan 1,2020. The need to retrofit vessels to meet these standard will dictate that vessels be taken out of service for the needed maintenance. Each carrier will establish individual plans to deal with the new regulations.
Albeit trading conditions are not as strong as we would like due to above noted reason space maybe an issue from/to certain location on certain weeks, thus please allow as much lead time as possible for booking to insure we can secure the services that meets or exceeds your individual requirements
Since the concern over duties seems to be driving many purchasing decisions please note the below update on import tariffs.
According to the official notice from The US Trade Representative (USTR), they posed an explanation of the effective date below;
DATES: Additional duties at a rate of 10 percent ad valorem on the tariff subheadings set out in Annex A to this notice are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after September 1, 2019. Additional duties at a rate of 10 percent ad valorem on the tariff subheadings set out in Annex C to this notice are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after December 15, 2019.
The date should be the fully released date when the imported goods must be actually arrived at the port AND customs are also released without further hold. So the goods are legitimately entered into the US Territories for consumption.
If goods actually arrived on 08/31/2019, customs entry filed on 08/27/2019 and customs released on 08/29/2019. No additional 10% duty in this case.
If goods actually arrived on 08/31/2019, customs filed on 08/27/2019 but customs put on hold for review or exam until 09/04/2019. It still have an additional 10% duty.
Making Customs entry before 9/1/2019 will not avoid the chance of getting the additional 10% duty.
Please review the below links for specific information.