China Tariffs Now at 25%…Sort of
On May 10, President Trump increased the punitive tariffs on U.S. imports of travel goods from China from 10% to 25%. However, according to the Federal Register notice and CSMS messages from U.S. Customs and Border Protection – 236 and 238:
- For goods entered (imported into the U.S.) before 12:01 AM (Eastern) on Friday, May 10, the punitive tariff remains at 10%.
- For goods that were exported from China before 12:01 AM (Eastern) on Friday, May 10, and entered (imported into the U.S.) before Saturday, June 1, the punitive tariff remains at 10%.
- To use this special duty rate, which is intended to provide relief from the duty increase for goods already on the water before May 10, the Trump administration has established a special temporary Harmonized Tariff System (HTS) number of HTS 9903.88.09.
- For goods entered (imported into the U.S.) on or after Saturday, June 1, regardless of when they are exported, the punitive tariff is 25%.
Remember that the punitive tariff on U.S. travel goods imports from China is on top of normal tariffs. Example: normal tariff on U.S. import textile luggage or backpacks is 17.6%. With the 25% punitive tariff, the total tariff on U.S. imports of textile luggage or backpacks from China goes up to 42.6% (17.6% normal tariff + 25% punitive tariff). Today, 82% of all travel goods sold in the U.S. are from China. We need you to raise your voices now in opposition to the new China Tariffs.
You can send a letter to your elected members of Congress and the President by clicking here to use TGA’s partner, the AAFA Legislative Action Center. If you want to speak to the media to share your stories about how tariffs have affected you, please contact TGA’s Nate Herman at firstname.lastname@example.org.
U.S. Travel Goods Industry Faces More California Prop 65 Notices; TGA Prop 65 Best Practices Guidance
May 9, 2019 – In the last two months, new California Proposition 65 (Prop 65) “60-day” notices have been issued alleging that brands and retailers sold totes (Notice 1, Notice 2, Notice 3, Notice 4), messenger/cross body bags (Notice 1), duffel bags (Notice 1), travel bottles (Notice 1), luggage tags (Notice 1, Notice 2), handbags (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6, Notice 7, Notice 8), wallets (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5), backpacks (Notice 1, Notice 2, Notice 3, Notice 4), cosmetic bags (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5), travel cases (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6), phone/tablet cases/holders/sleeves (Notice 1, Notice 2), fanny packs (Notice 1, Notice 2, Notice 3, Notice 4), and travel shoe cleaning kits (Notice 1) in California that contained di (2-ethylhexyl) phthalate (DEHP) and/or diisononyl phthalate (DINP) in violation of a California law known as Proposition 65 (Prop 65). The notices serve as intent to bring lawsuits against the recipients of the notices that sold these products. Check out TGA’s California Proposition 65 (Prop 65) Best Practices Guidance. This member-only guidance details best practices in developing your company’s Prop 65 testing and warning label protocol, including recommendations on which warning label text to use, where to place the warning label text, and how to test for Prop 65 listed chemicals in your products. For more information on Prop 65, please go to the Prop 65 page on the TGA website or contact TGA’s Nate Herman, email@example.com, (202) 853-9351.
U.S. Travel Goods Imports from India Could Lose GSP Status, Face Tariffs as Soon as May 4
President Trump could issue a proclamation as soon as May 4 to withdraw Generalized System of Preferences (GSP) benefits from India and Turkey and impose full tariffs on U.S. travel goods imports from those countries. Despite protests from TGA, the business community (April 12 and April 4 letters), multiple members of Congress, and India itself, President Trump seems prepared to follow through on his March 4 announcement to withdraw benefits. India is the 3rd-largest supplier of travel goods to the U.S. market. Under GSP, U.S. imports of travel goods can enter the U.S. duty-free from most developing countries, including India, Cambodia, Indonesia, Pakistan, and Thailand. TGA worked for many years to convince Congress and two Presidents to add travel goods to GSP back in 2016-2017 and will continue to fight to protect those benefits.