Update regarding US Section 301
The Office of the United States Trade Representative (USTR) announced a list of products imported from China that will be subject to an additional tariff of 25 percent starting July 6, 2018. Some packaging and processing machinery and parts coming into the U.S. from China will be subject to this change.
Above is an updated table that notes what food packaging and processing machinery/equipment will be subject to the additional 25 percent tariff as listed on the U.S. Section 301 list (as of June 15, 2018).
Impact to importers of packaging and processing machinery: U.S. most favored nation (MFN) (non-preferential) rates are very low – most are MFN duty-free, others not more than 2.8 percent. In 2017, imports from China were subject to $1.3 million in tariff costs on $346.8 million in imported value. If USTR were to apply the proposed 25 percent tariff on the current list of affected food packaging and processing equipment/machinery from China, U.S. importers will face an increase in tariff costs as high as $78.4 million.
More information can be found in the USTR’s June 15, 2018 press release.
Questions? Contact Paige Jarvi, global marketing coordinator, PMMI at [email protected].