Frequently Asked Questions: New US Tariffs – Business Implications Table of Contents 1. Tariff Scope and Rates ............................................................................................................ 3 • What products are affected by the new US tariffs? Does the 10% tariff apply to all UK exports, or only certain sectors? ...........................................................................................................................3 • Will the 10% tariff be added on top of existing duties (e.g. 8.1% becoming 18.1%) or just replace lower rates? ........................................................................................................................................3 •
Are there other tariff rates beyond the 10%? For example, 25%, 84% or 104% for certain goods? ....3
• How are products made of multiple materials (e.g. 75% wood, 25% aluminium) treated under the new tariffs? .........................................................................................................................................3 •
Are derivative products (e.g. items made from steel or aluminium) included in the higher tariffs? ..4
2. Rules of Origin & Substantial Transformation .......................................................................... 4 •
How do US non-preferential rules of origin work, and how do we prove UK origin? .........................4
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How is substantial transformation defined and documented? ......................................................4
• If a product is made from non-UK parts but is substantially changed in the UK, can it qualify as UK origin? ................................................................................................................................................4 • What about items where the packaging shows EU origin, even if transformation took place in the UK? 4 • Are there differences in treatment based on where the goods are exported from versus where they were manufactured? ...........................................................................................................................5
3. Harmonised System (HS) and Commodity Codes ................................................................... 5 •
Will we need to list two HS codes (main and tariff) on commercial invoices? .................................5
• Is there a central place to check HS code-specific tariffs or whether a product falls into a tariffexempt category? ...............................................................................................................................5 •
How do we classify components that may attract different tariff levels? .......................................5
4. Documentation & Customs Procedures .................................................................................. 6 •
Do exporters need to confirm compliance with rules of origin on customs invoices? .....................6
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Will US Customs require UK Certificates of Origin or mill certificates for steel goods? ..................6
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Will CBP accept UK-issued certificates to prove origin? ................................................................6
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How do we ensure couriers (e.g. FedEx) apply the correct tariff rate? ............................................6
5. De Minimis and Low-Value Shipments .................................................................................... 6