By:  Brian Walczyk, Compliance Manager, TradeInsights, LCB, CCS

The Federal Register has now published the notice covering the 90-day pause on IEEPA Reciprocal tariffs for China that went into effect on May 14, 2025, at 12:01 AM EST.

A summary of information regarding both 90-day pauses on the IEEPA Reciprocal rates can be found below, most notably the “end” dates of each pause.

• July 9, 2025 (90 FR 15625):  End of the 90-day pause on Annex I rate increases for specific countries, except for China.
  • Goods entered for consumption or withdrawn from warehouse for consumption on or after this date will have the original Annex I rates applied (11-50%).  This is subject to change based on trade negotiations.

• Aug 12, 2025 (90 FR 21831):  End of the 90-day pause on Annex I rate increase for China.
  • China’s rate was reduced on May 14, 2025, from 125% to 10%, with the 10% carrying through Aug 11, 2025. 
  • Goods entered for consumption or withdrawn from warehouse for consumption on or after Aug 12, 2025, will be subject to the Annex I China rate of 34%.  This is subject to change ahead of this date based on trade negotiations.

• Concept:  Entered for consumption is a pairing of the manifest arrival of the cargo at the port of entry, often by the carrier, and the presentation of the entry summary, prepared and submitted often by the broker.  The date utilized by US CBP is the last occurring of the two.  Therefore, a pre-filed entry will have its consumption date updated once the cargo actually arrives at the port of entry.

• How does entered for consumption interact with Immediate Transportation (IT) bonded cargo?  Per 19 CFR 141.69(b), the applicable rate of duty will be set on the date in which the IT is issued “cut” for transportation to the port of entry, so long as the entry summary is presented ahead of the actual arrival at the port of entry.

• Example:  Cargo arrives in LA on July 4, 2025, and the carrier cut the IT the same day.  The broker then files the entry on July 6, 2025, solidifying the “entered for consumption” lock-in of the duty rate ahead of the July 9^th IEEPA Reciprocal increase cut-off.  The cargo then arrived on July 15^th, but the IEEPA Reciprocal rate calculates at 10%, rather than the increased rate had the entry been presented on or after July 9^th.

In short, so long as the carrier issues the IT and the broker files the entry, both of which occur before the cut-off periods of the 90-day pauses, the duty rate for the IEEPA Reciprocal will still be enforced at the lower 10% rate.  Should the IT fail to be cut, the cargo be subject to quota, or the cargo move into GO, the consumption date will be as normally handled, and could much more easily miss the cut-off for the lower IEEPA Reciprocal rate.

We will continue to monitor and provide updates as they become available.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions, and you can always follow us on our website www.valexander.com for updates on this and other topics.