TARIFFS: The White House issued a long Executive Order last night (July 31) outlining the new structure for reciprocal tariff rates. The new rates will go into effect on August 7, allowing for CBP/US Customs to make the appropriate changes in the Customs system. There is a "goods on water" exemption provision as noted here:
"Sec 2: Tariff Modifications. (a) The Harmonized Tariff Schedule of the United States (HTSUS) shall be modified as provided in Annex II to this order. These modifications shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 7 days after the date of this order, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time 7 days after the date of this order, and entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on October 5, 2025, shall not be subject to such additional duty and shall instead remain subject to the additional ad valorem duties previously imposed in Executive Order 14257, as amended."
This language is similar to the previous "on water" exemption, and it is key to note that it is the "final leg" of the journey on the water that is the qualifying date for the exemption.
Changes in tariff levels from the current 10% for key beverage alcohol producing countries include:
EU: 15%
New Zealand: 15%
Japan: 15%
South Africa: 30%
Most of the other key production countries remain at the 10% level. For products from the EU, there is language that prevents stacking of the tariff amounts should they exceed 15%. We will be further defining this for beverage alcohol due to the "normal" duty rate being based on the volume of the products not the value, but the intention of the order indicates that the total duty paid on EU products should not exceed the 15% level.
Canada and Mexico are treated separately and Mexico has received a 90-day pause on any change in the tariff structure. Goods of Canada origin will be hit with a 35% tariff rate as of today (12:01 EDT on August 1).
CHILE: Ports in Chile remained closed yesterday due to bad weather despite the cancellation of the tsunami threat, but are expected to reopen today; some containers have been moved to offsite depots for safety. Meanwhile, the Argentina–Chile pass is also closed and likely to remain so until Sunday, with ongoing winter weather expected to cause intermittent delays—plan accordingly.
ALBATRANS LCL REEFER SERVICE:
