by Scott Frederick | Feb 6, 2025 | Global Logistics Alerts
Tariff on Canada, Mexico paused; China De Minimis Rule changes
As reported two days ago, U.S. Canada and Mexican Tariffs are Paused
On February 3, 2025, The White House issued official notices of the “Progress on the Situation at the Northern and Southern Borders” confirming the delay of the tariff actions against Canada and Mexico for 30 days due to immediate actions taken by both countries.
Both notices confirm the 25 percent ad valorem rate of duty will not be effective until March 4, 2025. Discussions with each country are expected to continue to address migration and drug enforcement.
Rules for China and Hong Kong
Foreign Trade Zones (FTZ) Rules:
Articles that are products of China and Hong Kong admitted into a U.S. foreign trade zone on or after 12:01 a.m. EST on February 4, 2025, must be admitted as “privileged foreign status”. Upon entry for consumption, such articles are subject to the 10 percent tariff imposed by the Executive Order as well as the duty rates related to the product at the time of the admission into the zone.
De Minimis Rules:
Traditionally, goods valued at USD 800 or less have been eligible for duty free de minimis treatment under 19 U.S.C. 1321 upon entry into the United States. When cargo moves by truck, the De minimis goods are entered on the carrier manifest under Section 321 entry or by the customs broker as Entry Type 86. Shipments by air and ocean are also entered by the customs broker as an Entry Type 86 filing. Previously under Section 301, de minimis goods have avoided additional tariffs and have entered duty free to the U.S. The Executive Order issued this week clarifies that Chinese origin goods are no longer eligible for the de minimis exemption. Further, all de minimis cargo will be impacted by the additional 10 percent tariff on China and Hong Kong as well as the general duty rate and other applicable duties. On February 4, 2025, U.S. Customs and Border Protection (CBP) will begin rejecting ineligible entries. The customs broker and importer have the option to issue an informal or formal entry in lieu of a de minimis entry to calculate the duties. On February 3, 2025, CBP issued in Cargo Systems Messaging Service CSMS # 63992482 with additional guidance on the clearance of de minimis shipments with various types of messaging per mode that could be received by the customs broker upon attempting an entry.
Drawback Rules:
Drawback is not available on the additional 10 percent duties imposed by the Executive Order on China and Hong Kong. There have been no changes to the ability to claim drawback on general duty and 301 duties for products from China and Hong Kong to date.
by Scott Frederick | Feb 4, 2025 | News
Logistics Plus Earns ‘Great Place to Work’ Certification for an Eighth Consecutive Year
In anonymous surveys since 2018, employees continue to rate Logistics Plus as a great workplace.
ERIE, PA (February 5, 2025) – Logistics Plus, Inc. (LP), a global leader in transportation, logistics, and unique supply chain solutions, is proud to be Certified™ by Great Place to Work® for the eighth year in a row. The prestigious award is based almost entirely on what the company’s employees say about their experience working at Logistics Plus. Close to 90% of employees say Logistics Plus continues to be a great place to work, an admirable achievement given the company’s significant growth over the past several years. That is 32 percentage points higher than the average U.S. company.
Additional facts from this year’s survey results:
- 97% of employees say they are treated fairly regardless of their race.
- 93% say they are proud to tell others they work here.
- 93% rate the service that Logistics Plus provides as “excellent.”
- 91% say management is competent at running the business.
- 90% feel good about the ways Logistics Plus contributes to the community.
Great Place To Work® is the global authority on workplace culture, employee experience, and the leadership behaviors proven to deliver market-leading revenue, employee retention, and increased innovation.
“Great Place To Work Certification is a highly coveted achievement that requires consistent and intentional dedication to the overall employee experience,” says Sarah Lewis-Kulin, the Vice President of Global Recognition at Great Place To Work. She emphasizes that Certification is the sole official recognition earned by the real-time feedback of employees regarding their company culture. “By successfully earning this recognition, it is evident that Logistics Plus stands out as one of the top companies to work for, providing a great workplace environment for its employees.”
“I do believe that what we’ve created here at Logistics Plus is special,” said Jim Berlin, Founder and CEO of Logistics Plus. ” Our younger folks may not realize that because they may not have worked elsewhere, but the ‘older’ folks know. And it’s only because of the wonderful people we’ve been able to bring together under the LP roof. As good as the last 28 years have been, I do believe the best is yet to come.”
According to Great Place To Work research, job seekers are 4.5 times more likely to find a great boss at a Certified great workplace. Additionally, employees at Certified workplaces are 93% more likely to look forward to coming to work, and are twice as likely to be paid fairly, earn a fair share of the company’s profits, and have a fair chance at promotion.
Brief Audio Comments
WE’RE HIRING!
Are you looking to grow your career at a company that puts its people first? Visit our careers page at logisticsplus.com/careers.
About Great Place to Work Certification™
Great Place To Work® Certification™ is the most definitive “employer-of-choice” recognition that companies aspire to achieve. It is the only recognition based entirely on what employees report about their workplace experience – specifically, how consistently they experience a high-trust workplace. Great Place to Work Certification is recognized worldwide by employees and employers alike and is the global benchmark for identifying and recognizing outstanding employee experience. Every year, more than 10,000 companies across 60 countries apply to get Great Place To Work-Certified.
About Great Place To Work®
As the global authority on workplace culture, Great Place To Work® brings 30 years of groundbreaking research and data to help every place become a great place to work for all. Their proprietary platform and For All™ Model helps companies evaluate every employee’s experience, with exemplary workplaces becoming Great Place To Work Certified™ or receiving recognition on a coveted Best Workplaces™ List.
About Logistics Plus, Inc.
Logistics Plus, Inc. (LP) is a 21st Century Logistics Company™ and a leading worldwide provider of transportation, warehousing, fulfillment, global logistics, business intelligence, technology, and unique supply chain solutions. When the world changes, Logistics Plus® delivers. Founded in 1996, today LP has annual global sales of over $600M with more than 1,200 employees located in 50+ countries worldwide. LP is recognized as one of the fastest-growing privately-owned logistics companies, a top 3PL provider, a top 100 logistics company, a top freight brokerage and warehousing provider, and a great place to work. With a Passion For Excellence™, its employees put the PLUS in LOGISTICS by doing the big things properly, plus the countless little things that together ensure complete customer satisfaction and success. Learn more at logisticsplus.com or download our media & press kit.
by Scott Frederick | Feb 3, 2025 | Global Logistics Alerts
Trump Delaying Mexico Tariffs on Imports for a Month
U.S. President Donald Trump will pause new tariffs on Mexico for one month after Mexico agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal drugs, particularly fentanyl, he said on Monday on social media. Mexican President Claudia Sheinbaum said the agreement also includes a U.S. commitment to act to prevent trafficking of high-powered weapons to Mexico. The two leaders spoke by phone on Monday, just hours before U.S. tariffs on Mexico, China and Canada were set to take effect. The two counties will use the month-long pause to engage in further negotiations, Trump said.
Read more at:
https://www.reuters.com/world/us/trump-says-americans-may-feel-pain-trade-war-with-mexico-canada-china-2025-02-03/
by Scott Frederick | Feb 2, 2025 | Global Logistics Alerts
New Tariffs on Canada, Mexico, and China Begin Tuesday, February 4, 2025
President Trump signed three executive orders that impose tariffs on imports from Canada, Mexico, and China, effective on 12:01 AM EST on Tuesday, February 4, 2025. Per the White House fact sheet, these tariffs are being implemented due to “The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA).” Duty drawbacks will not be allowed on goods subject to these tariffs, nor will they qualify for duty-free treatment under de minimis. Additionally, goods in transit as of 12:01 AM EST on February 1 will not be subject to these duties.
The key provisions of the President’s actions as known or expected to date include:
- All products imported from Canada and Mexico will bear a 25% duty for entry into the United States. Energy and energy resources from Canada will bear a lower 10% duty. All products imported from China will bear an additional 10% duty for entry into the United States.
- Application of the duties is expected will begin on February 4, 2025. Goods in transit prior to February 1, 2025, are excluded from the new tariffs together with a few other operational exceptions.
- DeMinimis treatment of low-value shipments will be unavailable for goods covered by these duties.
- No exclusion process will be available for domestic importers.
- No drawback will be available for duties paid under these actions.
- Any retaliation from our trading partners will be met with higher duty rates or expanded scope at the President’s discretion.
Read more at:
https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-president-donald-j-trump-imposes-tariffs-on-imports-from-canada-mexico-and-china/
https://www.whitehouse.gov/presidential-actions/2025/02/imposing-duties-to-address-the-flow-of-illicit-drugs-across-our-national-border/
