Urgent Updates on New 10% Tariff for Imports from China Effective February 2025

As of February 5, 2025, the U.S. Customs and Border Protection (CBP) has released detailed guidelines regarding the 10% tariff on goods imported from China and Hong Kong. This new tariff will take effect starting 12:01 AM EST on February 4, 2025.

Any goods that are entered for consumption or withdrawn from a warehouse for consumption will incur this additional charge, marked with the code 9903.01.20. Importers should note that goods already in transit will not be subject to the extra tariff if they were shipped before 12:00 AM EST on February 1, 2025, and the importer can prove compliance with the necessary conditions.

However, this exemption is time-sensitive and only applies to goods entered for consumption between 12:00 AM EST on February 4 and 12:00 AM EST on March 7, 2025.

Certain products are also exempt from the new tariff, including personal items in luggage, donated goods from China and Hong Kong, and informational products like publications and films, marked with codes 9903.01.21 and 9903.01.22 respectively.

Additionally, companies like UPS and FedEx have updated their shipping requirements. Starting now, all shipments to the U.S. valued between $250 and $800 must include a Manufacturer Identification Code (MID Code) on the commercial invoice. This code is crucial for customs declarations and must accurately reflect the manufacturer’s details.

The MID Code generation rules include using the country’s ISO code, the first three letters of the first two words of the company name, the largest number from the address, and the first three letters of the city name.

For instance, if a manufacturer’s name is ABC Company located at 236 Wendell Ford Blvd, Erlanger, US, the MID Code would be USABC236ERL.

Moreover, UPS has informed clients of new requirements for shipments from China to the U.S. After February 4, 2025, products from China and Hong Kong will face additional tariffs, and shipments valued under $800 will no longer qualify for tax exemptions. Effective February 6, a 2% tariff prepayment service fee will be charged, with a minimum fee of $14.

All shipments to the U.S. must provide complete and accurate commercial invoice data, including detailed descriptions, HTSUS classification, and origin details. For packages valued over $250, the final recipient's Tax ID or Social Security Number (SSN) must be included for customs clearance.