Expeditors International Of Washington, Inc. · NYSE:EXPD
Expeditors International Of Washington — US Customs Market Update Webinar (March 2025)
32 slides from Expeditors International Of Washington's conference presentation, Mar 25, 2025
Slide 1: US Customs Market Update
25 March 2025 US CUSTOMS MARKET UPDATE
Slide 2: Expeditors Webinar
2 EXPEDITORS WEBINAR 45 Mins of Content Submit questions How do I receive the How do I get in the Q&A window slides? information on future webinars? Q&A to follow We will answer them at After the webinar, you will Subscribe to receive the end of the webinar be emailed a short webinar invites, local
Slide 3: Speakers
3 SPEAKERS Stephanie Matthew Holloway Springate Regional Manager Customs, Principal, The Americas Tradewin Ted Henderson Senior Advisor, Customs Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
Slide 4: Disclaimer
4 DISCLAIMER The contents of this presentation are made available for informational purposes only and should not be relied upon for any legal, business, or financial decisions. Expeditors does not guarantee, represent or warrant any of the contents of this presentation. The contents are based on inf
Slide 5: Agenda
AGENDA 5 This Month • IEEPA • Section 232: Steel & Aluminum International Response • Canada • Mexico • European Union (EU) • China Mitigation Strategies • Qualifying for USMCA • Reducing your Entered Value What is on the Horizon? • Reciprocal Tariffs Key Takeaways Property of Expeditors Internationa
Slide 6: FDA: Intended Use Code
6 FDA: INTENDED USE CODE Requirements Changing - 29 March 2025 Intended use codes for these commodities used to be optional and is now moving to required data element. The options of what is available to submit are listed below: Cosmetics Food: CCW Drugs: PNH Animal Devices Ceramicware and Food Phar
Slide 7: Most Recent US Trade Actions: What Happened This Month?
MOST RECENT US TRADE ACTIONS WHAT HAPPENED THIS MONTH?
Slide 8: Things Are Shifting Quickly
8 THINGS ARE SHIFTING QUICKLY With no end in sight IEEPA: CANADA, CHINA, HONG SECTION 232: STEEL & ALUMINUM RECIPROCAL TARIFFS KONG & MEXICO Effective date: February 4, 2025 Effective date: March 12, 2025 Anticipated Effective date: April 2, 2025 • 10% tariff on goods from China and Hong • Restorati
Slide 9: IEEPA Timeline
9 IEEPA TIMELINE IEEPA DUTY OWED 10% FOR ALL GOODS FROM CN/HK 20% FOR ALL GOODS FROM CN/HK Executive CHINA / Order issued HONG KONG CSMS issued 28 Feb 01 Mar 02 Mar 03 Mar 04 Mar 05 Mar 06 Mar 07 Mar 08 Mar… Executive CSMS issued Executive CANADA & Orders issued Orders issued MEXICO reinstating allo
Slide 10: Current Challenges
10 CURRENT CHALLENGES IEEPA and USMCA entries • There is a question whether importers, with certain entries of goods that qualify for USMCA but were not initially entered with a USMCA treatment claim, will be able to recover IEEPA tariffs as part of filing a post-entry USMCA claim. • Typically, USMC
Slide 11: Things Are Shifting Quickly
11 THINGS ARE SHIFTING QUICKLY With no end in sight FOUR MAJOR TARIFF ACTIONS WITHIN 36 DAYS IEEPA: CANADA, CHINA, HONG SECTION 232: STEEL & ALUMINUM RECIPROCAL TARIFFS KONG & MEXICO Effective date: February 4, 2025 Effective date: March 12, 2025 Anticipated Effective date: April 2, 2025 • 10% tarif
Slide 12: Updated Section 232 FAQ Posted
12 UPDATED SECTION 232 FAQ POSTED Link “I don’t know the melt and pour Okay to use ‘OTH’ country” 1 “I don’t know the smelt and cast Temporarily report "RU" for Russia and pay a 200% duty. Importers country” 2 can later correct this information once they know the actual country. CBP is working on lo
Slide 13: Entries Are Getting More Complex
13 ENTRIES ARE GETTING MORE COMPLEX % of prepared entry lines and the number of HTS sent US Customs and Border Protection (CBP) 1 HTS 2 HTS 3 HTS 4+ HTS is implementing the additional duties by on a 7501 line on a 7501 line on a 7501 line on a 7501 line adding more HTS numbers Prior to 80% 19% <1% n
Slide 14: Understanding Stacked Tariffs
14 UNDERSTANDING STACKED TARIFFS Aluminum Widget EXAMPLE Country of Origin = China Value = $68 Duty Rate Duty Paid Chapter 99 HTS: 25% $17 Section 301: China Chapter 99 HTS: 20% $13.60 IEEPA: China Chapter 99 HTS: 25% $17 Section 232: Aluminum Chapter 1-97 HTS: 2.5% $1.70 General Classification TOTA
Slide 15: International Response
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Slide 16: Canada
16 CANADA Effective 07 March: Canada lodged a complaint with the WTO Planned Next – No Date: $155 billion worth of US imports. This includes electric vehicles, fruits Effective 04 March: and vegetables, beef, pork, dairy, 25% tariffs on $30 billion worth of electronics, steel, aluminum, US goods, in
Slide 17: Mexico
17 MEXICO 1. Consultations: Mexico is currently consulting with representatives from 1. Fitch Ratings: "Predicts Recession in RESPONSE TO its steel, aluminum, and auto Canada and Mexico" IEEPA TARIFFS industries to assess the impact of US tariffs 2. OECD: Recession at the end of 2025 2. April 2 Deci
Slide 18: European Union
18 EUROPEAN UNION Anastase RESPONSE TO Effective 01 April: Bouet SECTION 232: Delay and Adjustment: The EU originally announced it STEEL & would impose retaliatory tariffs The EU has decided to delay the ALUMINUM implementation of these tariffs until mid-April worth $28 billion on US industrial 2025
Slide 19: China
19 Announced 04 February: CHINA 15% tariffs on US imports of coal and liquefied natural gas (LNG), and 10% tariffs on crude oil, Announced 04 March: agricultural machinery, and large-engine vehicles – effective 10 February 15% tariffs on US imports of chicken, wheat, corn, and cotton, and 10% tariff
Slide 20: Mitigation Strategies
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Slide 21: What Is and Isn't Available
21 WHAT IS AND ISN’T AVAILABLE Before we get to Mitigation Strategies, let’s What Duty Mitigation Strategies are not avoid penalties available under IEEPA Section 232 • Exclusions “CBP shall prioritize reviews of the classification • Duty Drawback of imported steel articles and derivative steel arti
Slide 22: USMCA Solicitation & Qualification
22 USMCA SOLICITATION & QUALIFICATION Qualifying Product Soliciting Certificates Products Qualify for USMCA based on the The Importer, Producer, or Manufacturer can change process or amount of value added in the certify the goods as originating US, Canada, or Mexico A USMCA Certificate of Origin is
Slide 23: First Sale for Export
23 FIRST SALE FOR EXPORT Qualification Requirements 1. Bona Fide Sale 2. Arms Length 3. Sold for Export to the United States 4. All Costs Incurred Getting Started 1. Feasibility Review 2. Vendor-Manufacturer Case Studies 3. Vendor Training and Document Management 4. Activating Manufacturers by MID 5
Slide 24: What Is on the Horizon?
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Slide 25: Things Are Shifting Quickly
THINGS ARE SHIFTING QUICKLY With no end in sight IEEPA: CANADA, CHINA, HONG SECTION 232: STEEL & ALUMINUM RECIPROCAL TARIFFS KONG & MEXICO Effective date: February 4, 2025 Effective date: March 12, 2025 Anticipated Effective date: April 2, 2025 • 10% tariff on goods from China and Hong • Restoration
Slide 26: Treasury Secretary Bessent quote on tariffs
26 "We are going to go to them and say, ‘Look, here is where we think the tariff levels are, nontariff barriers, currency manipulation, unfair funding, labor suppression, and if you will stop this, we will not put up the tariff wall.’ If a country doesn’t change those policies, then we will put up t
Slide 27: Framework for Reciprocal Tariffs
27 FRAMEWORK FOR RECIPROCAL TARIFFS Non-Tariff Barriers and Tariff Differential Taxes Discriminatory Trade Practices The Administration will likely Two tax barriers often cited by Examples are: look at the overall tariff rate in the Trump Administration are: effect for a country, not by • Currency m
Slide 28: Policy tools for reciprocal tariffs abound
Policy tools for reciprocal tariffs abound IEEPA provides broadest powers, but relatively untested Roadblocks Low to High Tool Process Presidential powers Speed Public oversight Legality Congress needs IEEPA Broad powers 2/3rds majority Immediate ≤50%, product specific, Potential ITC 338 Days or wee
Slide 29: Recent Statements on Tariffs
29 RECENT STATEMENTS ON TARIFFS 24 March 2025 New Tariffs: Trump announced upcoming 24 March 2025 tariffs on automobiles, pharmaceuticals, Posted on Truth Social: Therefore, any Country lumber, and semiconductors. that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to
Slide 30: Key Takeaways
30 KEY TAKEAWAYS Potential Impact to Your Supply Chains Open Comment Periods ❑Assess any strategies that can be used to reduce value ❑National Security Investigation of Imports of paid on US Imports Copper – Due 01 April ❑Qualify parts for USMCA and other FTA’s ❑National Security Investigation of Im
Slide 31: Certificate of Completion
31 CERTIFICATE OF COMPLETION Continuing Education Credit to Support Your US Customs Broker License & Your NEI CCS/MCS, CES/MES Certifications This webinar has been approved for 1.0 credits by the NCBFAA Educational Institute Completion code for webinar NEI-032025-6-AQJI Code Expires: 21 March 2026 O
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