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While tempers are rising between the US and China over tariffs, Chinese products found no difficulty at the ports on Friday as no extra tariff was charged because there was a ‘technical’ glitch. CNBC reported that the glitch lasted for more than 10 hours.
US Customs and Border Protection reported that an entry code in the US system for American ships to use to have their freight exempted from tariffs was not working, and as a result, no tariffs were being collected by the US government for the time being.
Though Donald Trump said tariffs were already in effect, US shippers told CNBC they have not been charged higher tariff rates on their containers.
What was the glitch that affected tariff collection at ports?
The code that was to be used for products that are exempt from new tariffs because it was from a country where Trump paused his tariffs was not working. Customs said it deployed an immediate correction to the issue in which the Automated Commercial Environment did not accept the lower duty rate of 10% for entries that properly qualify as in-transit shipments filed since April 9.
Customs asserted that it would ensure that all tariff revenue due to the United States is collected.
When a US importer pays for their freight, they file both the cargo release forms and their financial papers, so they can pay for their cargo. To keep the cargo moving, Customs is advising importers to file the cargo release form now, and file the financial form later, once the glitch is corrected.
“The tariffs being paused on many nation’s trade, and the Chinese tariffs still in effect, are based on the sailing date, or the date the freight leaves the factory or warehouse. This is called an “on the water” clause and is in effect for all freight bound to the US that has been on the water before the April 5, 9, and 10 tariff announcements,” CNBC explained.
US-China tariff: Where does it stand?
After both countries announced several rounds of tariffs and counter-tariffs, the US’ tariff on China products stands at 145 per cent, and China’s tariff on US imports is 125 per cent. China has also decided to reduce the import of Hollywood movies while Trump hopes to crack a deal with ‘friend’ Xi Jinping.
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