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Jun
4
2019
Potential 5% Additional tariff for products coming from Mexico and ACH Recommendation

Dear Friends and Customers,

 

As you are all aware, President Trump issued on May 30 an official statement announcing the Administration’s intention to impose, effective on June 10, an additional 5% tariff on all imports from Mexico, unless Mexico takes enforcement measures on immigration into the US crossing from Mexico. If the immigration enforcement efforts by Mexico are determined to be effective, the tariffs will be removed at the Administration’s discretion. If not, the proposed tariffs will increase to 10% on July 1st, 15% on August 1st, 20% on September 1st and 25% on October 1st.  Although a top level meeting between Mexican Foreign Minister Marcelo Ebrard and United States Secretary of State Mike Pompeo is scheduled for Wednesday in order to negotiate the implementation of said tariffs, we have no certainty on the outcome this or any other meetings might have.

In order to better serve our client base in the possible scenario of having to pay this added tariff, we recommend that importers of record apply to Customs and Border Protection’s Automated Clearinghouse (ACH). ACH allows for electronic payment of customs fees, duties and taxes directly by the importer of record. Additional information on how this payment option works is available at: https://www.cbp.gov/trade/automated/ach

Imports may also opt to setup a Periodical Monthly Statement (PMS) with Customs and Border Protection that allows users to consolidate the payment of duties and fees on a monthly basis instead of day-by-day payment process. Information pertaining to this program is available at: https://www.cbp.gov/document/guidance/periodic-monthly-statement. Please note that setting up each of these payment options may take several weeks. We would be more than happy to assist you during your application process.

 For those customers that elect not to apply for these electronic and periodic payment options. RL Jones may ask for tariff advances or a deposit. We ask that you please calculate the 5% tariff on the value of products imported into the US so that you may forecast the financial impact. We will work closely with our client base in order to provide tariff payment options.

If you are already on ACH, please disregard this notice.

 Please feel free to reach out to us at Compliance.clx@rljones.com if you have any questions or comments. 

 Sincerely,

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R.L. Jones has offices across all major U.S Southern ports on both sides of the border. Select a location to view more details