US-EU Duties, MPF Increase and HK Origin Marking Status

USTR issued the attached Federal Register Notice (FRN) related to the Section 301 enforcement action related to the US-EU Large Civil Aircraft Dispute.

The administration did not change the rate of duty on $7.5 billion worth of European goods and only made minimal changes to the list of products subject to tariffs.

The latest changes become effective Sept. 1.Additional Background – The initial list was published in an October 2019 FRN. The aforementioned review was required by Section 407 of the Trade and Development Act of 2000, which directs the USTR to revise the list of items subject to duties within 120 days after the date the retaliation list was initially published and every 180 days thereafter.

US Customs & Border Protection (CBP) has increased the minimum and maximum Merchandise Processing Fees (MPF). The new fees will become effective on October 1, 2020. The ad valorem rate of 0.3464 percent remains the same.

The new FY 2021 MPF rates are:

Minimum Merchandise Processing Fee- $27.23

Maximum Merchandise Processing Fee- $528.33

Informal Entry Merchandise Processing Fee- $2.18

U.S. Customs and Border Protection (CBP) has issued CSMS #43633412 to provide guidance on the new country of origin marking rules for goods produced in Hong Kong based on the President’s Executive Order (EO) on Hong Kong Normalization (EO 13936, dated July 14, 2020). CBP confirmed in a list of frequently asked questions the changes in marking requirements does not affect the current entry process.

Country of Origin Marking of Products of Hong Kong (85 FR 48551, August 11, 2020)

The President’s Executive Order on Hong Kong Normalization (85 FR 43413, July 14, 2020)

1997 FR Hong Kong Customs 97-14662 (62 FR 30927, June 5, 1997)

Please contact your Western Overseas Corporation representative if you have any questions.