FTZ Processing for China Tariffs
Date of Publication: February 6th, 2025
FTZ processing information
Regarding the China 10% tariffs that went into effect on February 4, 2025, your ONESOURCE Global Trade FTZ product team is working on the development of validations to help you apply the correct tariffs at the right time.
Our priority as we learn about these new IEEPA tariffs is to ensure you can file what you need. As we are getting more guidance on these tariffs, we are developing validations for efficient processing. These new tariffs are not part of 301, so the validations that captured missing 301 HTS numbers do not apply to these IEEPA tariffs.
We will get the new validation updates out to the product as soon as possible, but in the meantime be aware that if you are importing foreign status goods from China, you need to be adding one of the new Chapter 99 HTS to your products, in Privileged status, utilizing the Item Master Custom Rules during your preparation steps.
IEEPA (Products for China and Hong Kong)
Chapter 99 | Brief Description | Duty Impact |
|---|---|---|
9903.01.20 | This heading applies to most articles that are products of China and Hong Kong, and it imposes an additional 10% ad valorem duty on these products. This additional duty is in addition to any other applicable duties | Additional 10% |
9903.01.21 | This heading covers articles that are products of China and Hong Kong that are donated by people under US jurisdiction for humanitarian reasons, such as food, clothing and medicine. These items will still have to pay the regular duties, but not the additional 10% | Excluded, no additional duties |
9903.01.22 | This heading applies to informational materials from China and Hong Kong, including publications, films, posters, and other media. These will still have to pay regular duties, but not the additional 10% | Excluded, no additional duties |
9903.01.23 | This heading provides an exception for certain goods that were already in transit before February 1, 2025. To qualify for this exception, the goods must have been loaded onto a vessel or in transit before 12:01 a.m. eastern standard time on February 1, 2025, and entered for consumption before 12:01 a.m. eastern standard time on March 7, 2025. These goods will still have to pay the regular duties, but not the additional 10% | Excluded, no additional duties |
You can find guidance on how to utilize Item Master Custom Rules for 2 or more HTS numbers needed on a tariff line in the
Item Master Custom Rules
article.If you are not already set-up to process Item Master Custom Rules, please contact your support team so that functionality can be made available.
CSMS guidance on reporting of multiple Harmonized Tariff System (HTS)
CSMS 64018403 was published on February 5, 2025, that outlines how CBP expects the HTS Sequence of the various Tariff numbers:
HTS sequence
- Chapter 98 (if applicable)
- Chapter 99 number(s) for additional duties (if applicable)
- For trade remedies,
- first report the Chapter 99 HTS for Section 301,
- followed by the Chapter 99 HTS for IEEPA (i.e., 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).
- Chapter 99 number(s) for REPLACEMENT duty or other use (i.e., MTB or other provisions)
- Chapter 99 number for other quota (not covered by #3) (if applicable)
- Chapter 1 to 97 Commodity Tariff