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New US rules impose 10% surcharge + strict checks on China-origin goods rerouted via Canada/Mexico. Learn how this impacts cross-border shipping strategies.
US Cracks Down on Chinese Imports Rerouted Through Neighboring Countries
On April 9, 2025, the White House issued Executive Order: Restoring America’s Maritime Dominance, introducing sweeping new measures targeting Chinese imports – including those rerouted through Canada and Mexico to avoid tariffs.
Key Changes Affecting Cross-Border Shipping:
1️⃣ New 10% Processing Surcharge
- Applies to all foreign-origin goods first arriving in Canada/Mexico by sea, then entering the US by land
- Implemented to cover CBP’s additional inspection costs
2️⃣ Strict “Substantial Transformation” Rule
- Goods must undergo significant modification in transit countries to avoid original Chinese tariffs
- CBP has full discretion to reject claims of transformation
3️⃣ Targeted Tariffs on Chinese Equipment
- New duties on:
- Ship-to-shore cranes (made with Chinese components or by China-influenced companies)
- Other cargo handling machinery
Why This Matters for Importers
🔴 Higher Costs: The 10% surcharge + existing tariffs could erase cost savings from rerouting
🟠 Delays: Mandatory CBP checks at US ports will slow logistics
🟡 Compliance Risks: Misclassified shipments may face penalties
Official Source: White House Executive Order
3 Strategies to Adapt
1️⃣ Verify HS Codes Early
- Ensure proper classification of “substantially transformed” goods
2️⃣ Factor in the 10% Surcharge
- Update cost models for Canada/Mexico transit routes
3️⃣ Explore Alternative Suppliers
- Vietnam, India, and Malaysia offer tariff-friendly options
Disclaimer: Regulations change frequently. Consult a customs broker before altering supply chains.
US customs checks Canada Mexico imports
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