A few weeks back, some Type 86 shipments coming into Los Angeles were stopped for inspection and found to contain illegal drugs. As a result, some major customs brokers were suspended from processing Type 86 shipments. This has caused delays in inbound shipments, but it’s also expected to have a ripple effect throughout the industry, with increasing bond requirements for industry professionals. Importers bringing in significant amounts of inventory will be impacted, with surety companies asking higher rates.
In addition, back in May, the US Trade Representative conducted the required four-year review of threat-related Section 301 tariffs and determined that there was not only still a threat, but that the threat level was higher than it was during the last review. Time will tell how this plays out, but it’s expected that some tariffs currently at 25% may increase to 50% or even 60%.
With all this going on, it’s a great time to recheck your tariff classifications to ensure you’re using the right codes.
Want some assistance? Give us a call – we’re always happy to review your classifications and see if there may be exclusions or other classifications that would be more beneficial for your business.
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