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Background:
On August 12, 2025, U.S. Customs and Border Protection (CBP) will implement a new Automated Commercial Environment (ACE) enhancement concerning Section 321 (de minimis).
This follows a change made on May 2nd, 2025, for products manufactured in China and Hong Kong where they are not eligible for de minimis treatment and are subject to applicable duties, taxes, and fees.
Key changes
The ACE enhancement will automate the enforcement of the aggregate value of 800USD de minimis threshold per person per day. Shipments with a value exceeding the 800USD limit per person per day may require informal or formal entries, potentially incurring duties, taxes, fees and may be subject to delays
Automated enforcement aims for more consistent and comprehensive application of the de minimis regulation by CBP.
Practical Examples
To help clarify the "per person, per day" rule, here are a few practical examples:
Multiple Carriers, Same Day:
If the recipient imports a 500USD shipment from FedEx and a 500USD shipment from another carrier on the same day, the total value of 1000USD exceeds the 800USD limit. As a result, duties, taxes, and fees may be applicable to the full amount of the second and further shipments.
Different Shippers, Same Day:
If the recipient imports a 300USD shipment from shipper ABC and a 600USD package from shipper XYZ on the same day, the combined value is $900, exceeding the 800USD threshold. In this case, duties and taxes may apply to the full amount of the second and further shipments, regardless of who sent them.
What customers should do:
Vague descriptions can lead to clearance delays, so:
- Include detailed and precise product descriptions, monetary value and currency.
- Provide the recipient's name and contact details.
- Ensure HS codes are provided when available.
- Use the most updated version of FedEx shipping software.
Frequently Asked Questions:
It’s the threshold below which goods can enter a country duty-free and with minimal paperwork.
As of May 2, 2025, products manufactured in China and Hong Kong are not eligible for de minimis treatment and may be subject to all applicable duties, taxes, and fees.
Any shipment arriving with a value of up to 800USD, per person per day, is eligible for de minimis treatment. The shipment that exceeds the 800USD limit and any others after that, will not be eligible for the de minimis treatment.
Duty, tax or fees applicable will be charged according to the Incoterm. The sender should be aware the de minimis rule is based on the receivers per person per day limit and shipments exceeding the 800USD threshold may incur duties, taxes and fees applied.
Useful Resources:
- New 10% tariff started 5th April:
A blanket 10% tariff now applies to all countries, starting 5th April at 12:01 a.m. EDT. - De minimis ends:
Starting 2nd May 2025, products from China, Hong Kong and Macau will no longer qualify for duty-free treatment under the U.S. de minimis rule (that allowed goods valued below $800 to enter the U.S. duty-free). - Higher tariffs announced for 9th April:
Over 80 countries subject to increased tariffs (above 10%) from 9th April.- 90-Day suspension (Except for China, Hong Kong, and Macau):
These increased tariffs are on hold for most countries until July 9th—except China, Hong Kong, and Macau, as announced by the U.S. Administration.
- 90-Day suspension (Except for China, Hong Kong, and Macau):
- China tariffs raise:
China’s tariff rate went from 34% to 125% as of 9th April.
This will significantly impact costs for goods sourced or routed through China, Hong Kong, and Macau.
- Tariffs remain in place until further notice from the U.S. Administration
What to expect:
- Higher shipping duties and taxes, especially for goods involving China, Hong Kong, and Macau.
- Tariffs may affect demand and urgency.
- The previously announced suspensions and increases may shift quickly.
- Need to plan ahead with your customs brokers and trade compliance teams.
What FedEx is doing:
- We've reviewed the latest U.S. government actions and are closely tracking how they affect imports—especially in sectors like consumer electronics, automotive parts, and low-value shipments.
- If you're unsure whether your products qualify for tariff exclusions—especially for smartphones and electronics—official government guidance is available. Our teams can help you navigate it.
- We strongly encourage all customers to ensure their shipping paperwork is complete and includes accurate product descriptions and HTS codes. It's the best way to keep goods moving smoothly across borders.
- Tariffs are applied based on where a product is made, not where it's shipped from. So, if you're sourcing from China, Hong Kong, or Macau, even if shipping through another country, expect those goods to be impacted.
- As stated above, starting 2nd May, products from China, Hong Kong and Macau will no longer qualify for duty-free treatment under the U.S. de minimis rule. We’re actively advising customers on how this may impact smaller parcel flows through timely regulatory alerts on our website.
- For companies eligible for duty drawback, there’s an opportunity to recover costs on re-exported goods. We encourage affected clients to explore this with their trade compliance teams.
What FedEx will keep doing to actively support its customers
We remain focused on supporting our customers in adapting to the latest regulatory requirements. It is important for customers to have paperwork completed correctly ahead of pick-up so shipments can continue to move seamlessly through our network to their final destinations. FedEx has an experienced team of clearance and compliance experts who are continuing to enable the movement of shipments across borders of the more than 220 countries and territories we serve. Tools like FedEx Shipping Channel are available to help shippers complete paperwork with step-by-step guides.
Regulatory alerts by region
Each alert is accompanied by the date it was posted, with regulations broken down into easy-to-understand bullets and links to additional, more comprehensive resources.
Background:
On February 10, President Donald Trump signed two proclamations to modify tariffs on steel and aluminium imports, which went into effect 12:01 a.m. ET on March 12 without exceptions or exemptions.
What’s happened?
Effective June 4, tariffs on steel and aluminium imports to the U.S. increased:
- Steel and Aluminium: tariffs increased from 25% to 50% for all countries.
Exceptions:- Steel and Aluminium goods manufactured in the UK: remain at 25%
- Aluminium goods manufactured in RU: remain at 200%
The proclamations terminate existing exemptions on imports from Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, and the UK.
Eligible steel and aluminium imports will continue to receive de minimis treatment.
These tariffs primarily target raw steel and aluminium imports, including semi-finished products such as slabs and ingots. However, some processed products may also be affected depending on the level of processing and their classification under the U.S. Harmonized Tariff Schedule (HTS).
In addition, the recent presidential proclamations on steel and aluminium identify new derivative steel and aluminium articles to be covered by the tariffs at a future date.
Please note that eligible steel and aluminium imports continue to receive de minimis treatment.
What does it mean to FedEx and customers?
When shipping to the U.S, please check your products and use the correct HTSUS codes as this will have an impact on the handling of the import and the duty rate applied.
To minimize any possible delays in clearance processing, customers should:
- Provide a strong description of the goods they are shipping (what is it? how many are there? what is it made from? what is the intended use? what is the country of manufacture?).
- Enter the HS code or US 10-digit HTS code on the commercial invoice (HTS code lookup tool).
- Make use of FedEx Electronic Trade Documents (ETD) if shipping with FedEx Ship Managertm.
Frequently Asked Questions:
Importers can find official updates in the Federal Register, on the Department of Commerce and CBP websites.
No. Effective immediately, the Department of Commerce will no longer process or approve any new product exclusions. Previously granted product exclusions will remain in effect until their expiration date or until the allocated import volume is met.
Upon review, if CBP discovers misclassification resulting in a failure to pay additional Section 232 tariffs, they are instructed by the proclamation to assess the maximum penalty permitted by law against the importer. The proclamation does not permit CBP to consider mitigating factors when making this determination and assessing a penalty.
Background
On June 16, 2025, the U.S.-UK Economic Prosperity Deal was announced by the respective countries. Both parties agreed to address certain tariff and non-tariff barriers to trade with specific implementation details to be announced later.
On June 23, 2025, Executive Order (EO) 14309 was published in the Federal Register. The EO includes specific implementation details from the U.S. for the EPD. The deal updates trade terms, especially for the automotive, aerospace and steel and aluminum segments.
Key Changes
Automobiles
- A new annual tariff-rate quota (TRQ) of 100,000 UK-origin automobiles is set.
- Vehicles within the TRQ face a 10% total tariff (7.5% + 2.5% MFN).
- Vehicles above the TRQ are subject to a full 25% tariff (Proclamation 10908).
- The TRQ is retroactive to May 8, 2025.
- Covered automobiles are in Classified in Heading 8703 and specified in note 33(b) to subchapter III of Chapter 99.
Effective June 30th.
Auto Parts
- UK-origin automobile parts intended for use in UK-origin automobiles will be subject to a reduced total tariff rate of 10%.
- Covered auto parts are those classified in Heading 8703 and specified in note 33(g) to subchapter III of Chapter 99.
Effective within 7 days of June 23rd.
Civil Aircraft and Civil Aircraft Parts
- UK-origin goods under the WTO Civil Aircraft Agreement are exempt from:
- Reciprocal tariffs (EO 14257)
- Aluminium articles and their derivatives (Proclamation 9704)
- Steel articles and their derivatives (Proclamation 9705)
In order for U.S. imports to qualify for treatment as civil aircraft parts, a statement on the shipment documentation must clearly identify the products as parts of civil aircraft.
Effective within 7 days of June 23rd.
Steel and Aluminium articles and their derivatives:
- A future announcement will introduce 2 TRQ: one for UK origin aluminium articles and their derivatives; and another for UK origin steel articles and their derivatives.
Frequently Asked Questions:
No. The agreement is implemented based upon the country where the goods were manufactured, rather than the country from which the product was shipped. For example, a shipment of automobile parts sent from the U.K. but made in Germany would not be eligible for preferential treatment under the EPD, as the country of origin would be Germany.
No. The implementing text of EO 14309 specifically states that the parts must both be U.K.-origin and intended for use in a U.K.-origin automobile.
A statement identifying that the automobile parts are intended for use in U.K.-origin automobiles should be provided on the commercial invoice. Without the intended use identified on the shipment documentation, the reduced duty rate would not be applicable.
What’s happened?
The U.S. have announced the following changes for import entry submissions:
Reciprocal tariff
- Effective April 5, 2025 00.01EDT (U.S. Eastern Daylight Time) all products not produced or manufactured in the U.S. will be subject to an additional ad valorum duty of 10% *
- Effective April 9, 2025 00.01 EDT products produced or manufactured in the EU and other countries with the 10% additional tariff will be replaced by ad valorum duty listed in the Reciprocal tariff sheet.
De minimis update
- Effective May 2 at 00:01 EDT products originated or manufactured in China/Hong Kong will be removed from duty free de minimis treatment.
- Duty free de minimis treatment remains in place for countries other than China/Hong Kong until U.S. Authorities announce adequate systems are available to collect duties.
* Exclusions apply
Products excluded from the additional tariffs announced April 2 are:
- steel/aluminium articles and derivatives (remains at 25% tariff)
- automobiles and auto parts (remains at 25% tariff)
- copper, lumber, bullion articles subject to review
- pharmaceuticals
- semiconductors
- energy and specified minerals not available in the U.S.
- items of correspondence, postal documents, items for travel, baggage and donations 50 USC 1702: Presidential authorities
- Canada and Mexico origin remain covered by an earlier executive order
When do the tariffs apply
The tariffs will apply on the effective dates irrespective of shipping or arrival date. The tariff will apply when the goods are entered for release for consumption (home use).
What should you do now?
It is now even more important than ever to provide a clear and accurate description of your products along with the country where the goods were produced or manufactured.
In order for the U.S. Authorities to apply the correct duty rate it is critical to provide the description and country of origin. The tariffs vary greatly, depending on product, content and origin, without these details shipments may require further information.
Top Tips when shipping to the U.S.
- full and accurate product descriptions
- be specific about the country of manufacture or where they were produced
- using a 10-digit US HTS will validate the description
- MID (Manufacturer Identification Code) is often required for products such as textile, apparel, FDA (Food & Drug Administration) and wood products
- textile and apparel products requiring an MID code information found here
The situation is evolving, so stay tuned to fedex.com for further updates.
What’s happened?
An additional 10% tariff shall be imposed on products with country of origin from mainland China and Hong Kong (above $800 in customs value) from March 4, 2025 (US Eastern time); unless they are eligible for de minimis treatment. This makes the total additional tariff applicable to products with country of origin from mainland China and Hong Kong 20% on top of the existing duties and taxes before February 1, 2025.
Additionally, 25% additional tariff is imposed to the products with country of origin from Canada and Mexico, as well as a 10% tariff on Canada oil. The duty-free de minimis treatment for products with country of origin from mainland China, Hong Kong SAR China, Canada, and Mexico remains in place temporarily until “adequate systems are in place to fully and expeditiously process and collect tariff revenue,”. Therefore, we strongly recommend customers who ship products with country of origin from mainland China, Hong Kong SAR China, Canada, and Mexico to provide the 10-digit H.S. code and the Manufacturer Identification Code (MID) for the eligible shipments.
Money-back Guarantee for shipments to the U.S. is now reinstated for FedEx International Priority® services.
What should you do now?
For all shippers shipping to the U.S., we highly recommend:
- For all commodities: Provide the 10-digit H.S. code for all products with country of origin from mainland China and Hong Kong SAR China, Canada, and Mexico, regardless of where shipments are made
- Manufacturer Identification Code (MID) is required for commercial use as below:
- All shipments below $800 containing textile and apparel products need MID, except for #2 below. All other commodities below $800 do not need MID.
- H.S. codes of the textile and apparel products that need MID code information can be found here.
- For textile and apparel below $250 will not need MID if the shipment meets the personal use (non-commercial) shipment criteria.
- For personal use (non-commercial) shipments of textile and apparel products, it is acceptable to report the shipper as the manufacturer if the actual manufacturer’s information is unavailable.
Remarks: Specific H.S. code of commodities/items might still require an MID code even if it’s considered not required above. H.S. codes of the textile and apparel products that need MID code information can be found here.
- All shipments below $800 containing textile and apparel products need MID, except for #2 below. All other commodities below $800 do not need MID.
- We strongly recommend customers providing U.S. Tax ID of the recipient/consignee if it needs to be paid by the recipient/consignee.
We remain focused on supporting our customers and working with them to adapt to the substantial changes resulting from the recent tariff announcements. FedEx has an experienced team of clearance and compliance experts who are working around the clock to continue enabling the movement of shipments across borders of the more than 220 countries and territories we serve.
The situation is fluid. Please stay tuned at fedex.com for more updates.
Frequently Asked Questions:
MID code is one of the required information for import clearance into the U.S. It’s used as an alternative to the full name and address of a manufacturer, shipper or exporter and is always required for U.S. formal customs entries. MID code must be shown on the commercial invoice for import clearance into the U.S.
The MID code is used on paperwork presented to the U.S. Customs and Border Protection (CBP), the U.S. Food and Drug Administration (FDA), the U.S. Department of Agriculture (USDA) and the good's recipient.
H.S. codes of the textile and apparel products that need MID code information can be found here.
To generate a Manufacturers Identification code (MID code), you need to make sure your manufacturer has provided their full business name and postal address.
Here is the step-by-step guide for generating MID code.
Please provide the MID code together with the item in both the air waybill and the commercial invoice.
No. The tariffs are applied based upon the product’s country of origin rather than the country from which the product was shipped. For example, a $2,000 shipment of automotive parts sent from Brazil but made in China would be affected by the 20% tariff imposed by this action since the goods’ country of origin is China.
No. Goods with a country of origin of Taiwan or Macau are not impacted by these tariff actions.
No. The EOs make no accommodation for product exclusions.
The tariffs are applied based upon the product’s country of origin rather than the country from which the product was shipped. For example, in the case of a shipment of automotive parts with a country of origin of Mexico shipped from Brazil, the shipment would be affected by the 25% tariff imposed by this action since the goods’ country of origin is Mexico.
If your products qualify for special treatment under USMCA, be sure to include a completed USMCA Certification of Origin with your shipment documentation. Please visit the Resources section to find the linked USMCA Certification fillable form that includes completion instructions. For shipments valued at or under US$2,500, the following low value statement may be included on the shipment documentation and utilized in place of the more extensive USMCA Certification of Origin: “I hereby certify that the goods covered by this shipment qualifies as an originating good for the purposes of preferential tariff treatment under USMCA/T-MEC/CUSMA.”
Useful Resources:
Federal Register Notice 90 FR 11426: Further Amended Notice of Implementation of Additional Duties on Products of the People's Republic of China Pursuant to the President's Executive Order 14195, Imposing Duties to Address the Synthetic Opioid Supply Chain in the People's Republic of China.
https://www.govinfo.gov/content/pkg/FR-2025-03-06/pdf/2025-03677.pdf
CSMS # 64299816 - UPDATE – Additional Duties on Imports from China and Hong Kong
https://content.govdelivery.com/bulletins/gd/USDHSCBP-3d52328?wgt_ref=USDHSCBP_WIDGET_2
FedEx Regulatory Alert Update: US Implementation of Additional Duties on Products of China and Hong Kong
https://www.fedex.com/content/dam/fedex/us-united-states/International/upload/Update_US_Implementation_of_Additional_Duties_on_Products _of_China_and_Hong_Kong.pdf
19 CFR 143.21(a) “Merchandise eligible for informal entry
https://www.ecfr.gov/current/title-19/chapter-I/part-143/subpart-C/section-143.21
FedEx USMCA Certification Fillable Form
https://www.fedex.com/content/dam/fedex/us-united-states/International/upload/FedEx_USMCA_T-MEC_CUSMA_Fillable_Form.pdf
FedEx USMCA Landing Page
https://www.fedex.com/en-us/shipping/international/usmca-trade.html
What’s happened?
On February 1, 2025, President Trump issued three separate Executive Orders (EOs) announcing the planned imposition of tariffs on products of Canada, China, and Mexico. The effective date for these tariffs was planned as February 4, 2025.
On February 3, 2025, it was announced that the tariffs on products of Mexico and Canada would be delayed until no sooner than March 4, 2025. The actions taken with respect to products of China and Hong Kong remain in effect.
Useful Resources:
What’s happened?
On December 19 and 30, 2024, the Mexican government published regulations raising import duties for some textile and apparel goods, and modifying the simplified customs clearance process, adding restrictions, as well as adjusting and expanding information obligations on the clearance of express shipments arriving in Mexico. The increase in tariffs took effect on December 20, 2024, while those applicable to the simplified clearance of express shipments effective January 1, 2025.
Who does it affect?
Anyone sending shipments to Mexico will need to comply with the new regulations.
What should you do now?
Click here to familiarize yourself with the details. The information is available in English.
What’s happened?
U.S. Customs and Border Protection (CBP) is rolling out an automated capability to enforce the de minimis threshold that allows for the duty- and tax-free entry of shipments with an aggregate value of $800 or less per person, per day. FedEx customers are reminded that if a recipient’s aggregated imported shipments exceed the $800 de minimis daily threshold, then informal or formal entries may be required—including payment of all applicable duties, taxes, and fees—and may be subject to delays as a result.
Who does it affect?
De minimis rules are applicable to all U.S. inbound shipments from around the world.
What should you do now?
While the “per person, per day” de minimis provision is already actively enforced by CBP, we anticipate that automated enforcement of this provision will lead to more consistent and comprehensive treatment by CBP. To avoid potential clearance delays, FedEx encourages customers to follow these best practices to remain in compliance with CBP guidelines:
- Provide precise cargo descriptions when creating shipments with FedEx. These guidelines include a precise product description, specific monetary value and currency, shipper and recipient details, as well as a Harmonized System (HS) code (where required). Vague merchandise descriptions violate CBP guidelines and may delay clearance.
- Ensure you are using the most updated version of FedEx shipping software.
- If inbound shipments are heading to fulfilment centres, follow CBP’s guidance during shipment creation, including listing the consignee´s name as “[Merchandise Owner Name] c/o [fulfilment centre name]”.
Please note that descriptions such as “parts,” “accessories”, or “personal use” do not provide the required clarity for customs brokers to submit a customs entry or for CBP to review. These types of descriptions will result in unnecessary delays, as we will need to clarify what the goods are before submitting the customs declaration. Strong descriptions accurately describe what the goods are made of and their intended use. Examples include “children’s toys made of plastic” and “women’s dresses made of 60% cotton and 40% polyester”. Vague or incomplete descriptions on the commercial invoice are a primary reason for international shipment delays across the globe. For more information on how to provide an accurate goods description, visit Shipping Channel.
Transmitting your customs documentation electronically via FedEx® Electronic Trade Documents (ETD) can help you avoid delays at customs. Getting started takes just a few simple steps.
Useful Resources:
What’s happened?
U.S. Customs and Border Protection (CBP) have introduced enhanced Air Cargo Advanced Screening (ACAS), targeting inbound packages with ambiguous or unclear descriptions. This means that any inbound shipments to the United States with a vague goods descriptions may be rejected by CBP for ACAS screening. If CBP rejects a cargo description, FedEx may decline the shipment at origin or hold the shipment at origin until updated information is filed.
What should you do now?
It is essential that you provide an accurate goods description on the commercial invoice.
Descriptions such as ‘parts’ ‘accessories’ or ‘personal use’ do not provide the required clarity for customs brokers to submit a customs entry or for CBP to review. Strong descriptions accurately describe what the goods are made of and their intended use. Examples include ‘children’s toys made of plastic’ and ‘women’s dresses made of 60% cotton 40% polyester’. Vague or incomplete descriptions on the commercial invoice are a primary reason for international shipment delays across the globe. CBP have issued a list of vague descriptions that are not acceptable, and this list will evolve over time, see Unacceptable vs Acceptable Cargo Descriptions.
As a reminder, it is incredibly important for importers to follow CBP’s regulations. Any mistakes in documentation, reporting, type of goods, etc. could result in delays, fines, and even seizures of the shipment.
For more information on how to provide an accurate goods description visit Shipping Channel.
We also strongly recommend that you submit your customs documentation electronically via FedEx® Electronic Trade Documents (ETD) as this can help you avoid delays at customs.
For additional support visit How to ship to U.S.
What’s happened?
The Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) initiative is transforming how it will manage the import of commercial goods into Canada, including the requirement for importers to create a CARM Client Portal (CCP) business account. The CARM Client Portal is a self-service tool that facilitates accounting and revenue management processes with the CBSA. It was launched in May 2021 and is a multi-year initiative, structured in a series of releases.
Timings:
Commercial importers are not mandated to register for the portal until Release 2 (date to be announced by CBSA), when all interactions with the CBSA will be done through the portal. However, affected businesses are encouraged to register already now to be prepared on time.
Who does it affect?
Canadian businesses residing in Europe: If you’re importing commercial goods into Canada and are responsible for the payment of any duties and taxes as the Importer of Record (IOR), it´s important to take certain steps to help prevent your shipments from getting delayed at the border or returned to you as the sender when CARM is fully implemented.
What should you do now?
Canadian businesses residing in Europe:
Register for the CARM Client Portal (CCP) now before the regulation takes effect. Once registered, delegate authority to your customs brokers (e.g. FedEx Express or FedEx Trade Networks) so they can continue to manage your commercial imports to Canada under CARM. You must also ensure your customs broker has your current company and contact information.
Detailed information, next steps, and helpful resources are available at fedex.ca/carm. To access this page, please type in the vanity manually.
Consider bookmarking this page: We will update the steps once additional requirements for Release 2 are further clarified.
European businesses selling commercial goods to customers in Canada:
Consider confirming at the time of sale that your Canadian business partner has taken the required steps to prepare for CARM.
What’s happened?
The National Customs Service (Servicio Nacional de Aduanas) has stated that as of February 1, 2022 the Rol Único Tributario – RUT (Unique Taxpayer ID) must be included for all shipments to Chile, regardless of the type and value of the shipment.
All shipments arriving to Chile from abroad must include the RUT of the consignee to avoid being held by Chile’s Customs authority. Shipments arriving without RUT may be rejected and will not be allowed to clear until the RUT is provided. In addition, the carrier, may be subject to fines.
Shipments must include the RUT, and the first name, last name, and/or company name, of the consignee.
Who does it affect?
Anyone sending shipments to Chile will need to comply with the new regulations.
What should you do now?
As of February 1, 2022, you must include the Rol Único Tributario – RUT (Unique Taxpayer ID) number on the commercial invoice for all shipments to Chile.
What's happened?
Canada, along with over 200 countries and customs territories, accept the World Customs Organization (WCO) Harmonized System (HS) nomenclature as the foundation for their tariff legislation and the collection of international trade statistics. The HS code is updated every 5 years to keep current with new and evolving changes in technology, trade patterns, and global issues. For HS 2022, the WCO made significant amendments that came into effect on January 1, 2022.
The 2022 Canadian Customs Tariff has been updated to reflect the 351 sets of amendments made to the WCO HS nomenclature. The amendments include changes to HS classification codes, but duty rates have not been affected.
The Canadian Border Service Agency (CBSA) has prepared a Table of Concordance and this table reflects that around 1,194 tariff items at the 8-digit level and 1,534 tariff items at the 10-digit level are impacted. This encompasses a wide range of goods.
If your products fall under the following customs chapters, it’s a good idea to double-check their classifications:
Chapter 29: Organic chemicals
Chapter 30: Pharmaceutical products
Chapter 44: Wood, articles of wood, charcoal
Chapter 70: Glass and glassware
Chapter 73: Articles of iron or steel
Chapter 84: Nuclear reactors, boilers, machinery
Chapter 85: Electrical machinery and equipment
Chapter 87: Vehicles (non-railway, non-rolling stock)
Chapter 88: Aircraft and spacecraft
Chapter 90: Medical or surgical instruments and apparatus
Chapter 95: Toys, games and sports accessories
Chapter 97: Works of art, collectors’ pieces and antiques
Who does it affect?
All businesses that ship packages and goods to and from Canada will need to comply with the new HS classification codes. Given the wide scope of changes, there are many important ones not mentioned here so it is therefore essential that you fully review to see if your goods are impacted.
What should you do now?
Businesses who ship goods to Canada should review their product/commodity databases to ensure their HS classification codes remain valid in accordance to the 2022 Canadian Customs Tariff. Using invalid HS classification codes could result in customs entry errors and potential clearance delays.
Useful Links:
Additional tips and customs resources
Trade agreements
Find out more about the agreements in place with countries worldwide.
Document preparation
Everything you need to know about the essential documentation required to satisfy customs authorities.
Customs tools
Additional resources to help you prepare your shipment so that it successfully clears customs.
Regulatory alerts by region
Each alert is accompanied by the date it was posted, with regulations broken down into easy-to-understand bullets and links to additional, more comprehensive resources
What’s happened?
The World Custom Organisation’s (WCO) Harmonized System (HS) is used for the international classification of goods when they are being traded across borders. It is applied in more than 200 states, countries and territories worldwide, meaning 98% of the world's trade is classified using the HS nomenclature. It is revised every 5 years, and HS 2022, the seventh edition of the Harmonized System nomenclature, will come into effect from January 1, 2022.
Commodity codes are a key requirement for the completion of customs processes such as completing declarations and are used to determine what duties and other taxes may be payable when goods are traded across borders. It is essential they are correct as product misclassification could lead to customs delays or payment of higher duties and taxes.
What’s in the new HS 2022?
The new HS 2022 edition has a total of 351 amendments covering a wide range of goods.
HS 2022 recognises new product streams and addresses environmental and social issues of global concern. Some examples include:
- Electrical and electronic waste (e-waste): HS 2022 includes specific provisions for its classification to assist countries in their work under the Basel Convention.
- Nicotine-based products and unmanned aerial vehicles (UAVs, also known as drones): New provisions simplify the classification of these products.
- Smartphones: Gain their own subheadings.
- Glass fibres and metal-forming machinery: Major reconfigurations have been undertaken because the current subheadings do not effectively represent technological advances in these sectors.
- Multi-purpose intermediate assemblies: there will be more products classified in their own right, such as flat panel display modules.
Goods specifically controlled under various Conventions have also been updated and many new subheadings have been created for dual-use goods.
Changes have also been made to put a greater focus on health and safety. The recognition of the dangers of delays in the deployment of tools for the rapid diagnosis of infectious diseases in outbreaks has led to changes to the provisions for such diagnostic kits to simplify classification. New provisions for placebos and clinical trial kits for medical research to enable classification without information on the ingredients in a placebo will assist in facilitating cross-border medical research. Cell cultures and cell therapy are among the product classes that have gained new and specific provisions.
Who does this affect?
Given the wide scope of the changes, there are many important changes not mentioned here so it is therefore essential that any business shipping goods across borders review the changes to see if their goods are impacted.
What should you do now?
You should review the HS 2022 changes to determine if any of these changes impact your product classifications. Additionally, importers should perform a complete product database review to confirm their existing product classifications are valid for when HS 2022 goes into effect.
The WCO has published 2017 to 2022 correlation tables that can be used to check if the current HS code will change and, if so, where the relevant goods will be classified.
And remember:
The WCO standardizes HS codes at the six-digit level. That six-digit code is the international standard for all participating countries. The first two digits indicate the HS chapter heading, the second two identify the product heading, and third two identify the specific subheading or subcategory of a given product.
Most countries accept at the six-digit level but there are exceptions and some countries require additional digits. For example, the United States uses a 10-digit code to classify products for export, known as a Schedule B number. In India, 8 digits are used, called the ITC number (Indian Tariff Code number).
It is essential to check the country you are shipping to and from to see what is required.
Useful links:
What’s happened?
Use of the import VAT reverse charge is compulsory for businesses importing into France with effect January 1, 2022. In addition, the management and collection of VAT on imports has been transferred from French Customs to the French Tax Authority - Directorate of Public Finance (DGFiP).
The declaration and payment of import VAT will be made in the French VAT return instead of the customs declaration. This deferral to the VAT return is known as a ‘reverse charge’. This reverse charge means that the import VAT is no longer paid at the point of importation.
As of January 1, 2022, if a business will act as the importer of record for an import of goods into France, then it is mandatory for that business to be registered for French VAT and to submit a French VAT return.
VAT registration in France can be done directly by businesses established in France or by businesses located in the EU or UK. Businesses not established in the EU or UK that wish to act as the importer of record for their goods will have to appoint a French tax representative to file the VAT registration application on their behalf.
FedEx customers shipping goods from outside of the EU to business customers in France should provide the French VAT registration number for the importer of record for the customs documentation.
Please note:
- The online French VAT return will be pre-filled automatically with the amount of import VAT based on the information previously declared to French Customs on the customs declaration.
- A web portal will be set up by French Customs to allow businesses to download monthly details of all their imports into France.
- The pre-filled VAT return will be available on the 14th day of each month via French Customs’ online tax portal.
- The deadline for filing the VAT return will become the 24th day of each month for all businesses liable for import VAT.
Who does this affect?
The change applies to businesses that will be importer of record for goods entering France.
What should you do now?
The customs declaration will now have to include the importer's French VAT number so you must include this information on the commercial invoice. If a business will be an importer and does not have a French VAT number, it should contact the French tax authority to register for VAT. For businesses based outside the EU, a fiscal representative may need to be appointed.
For importers that are businesses and do not possess a French VAT number or for private individuals, the import VAT will be collected at the time of import via the import declaration, as was the case before January 1, 2022.
The information provided does not, and is not intended to, constitute legal and/or tax advice; instead, this information is for general informational purposes only. This information may not constitute the most up-to-date legal or other information. Readers of this information should contact their own advisor to obtain advice with respect to any particular legal and/or tax matter. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is”; no representations are made that the content is error-free.
What’s happened?
There will be changes coming into effect on January 1, 2022 with regards to imports of specified Sanitary and Phytosanitary (SPS) goods from the EU27 and European Economic Area (EEA) to GB.
Who does it affect?
Customers in the EU27 and EEA who send the following SPS goods to GB:
- Live animals;
- Germinal products;
- Products of animal origin (POAO) under safeguard measures;
- High risk animal by-products (ABP);
- High Risk Food or Feed not of animal origin (HRFNAO)
- All regulated plants and plant products.
What will change?
From January 1, 2022:
From January 1, 2022, pre-notification of the import of products, animals, food, and feed system (IPAFFS) will be required. Our UK Import Clearance teams will complete the pre-notifications on behalf of GB importers.
For now, documentary checks have been postponed, and there will be no requirement for the goods to enter GB via an established point of entry as there will be no physical identity inspections. However, these checks will be introduced from July 1, 2022, together with the requirement for Export Health Certificates (EHCs). The EU exporter will have to provide a copy of the EHC to their UK importer prior to sending the goods.
Further changes in 2022:
In addition to IPAFFS pre-notification requirements, from July 1, 2022, all of the above mentioned types of goods will require a valid EHC or SPS Certificate in order to undergo documentary checks.
Beginning on July 1, 2022, all POAO and ABPs and all regulated plants and plant products will also have to enter GB via a point of entry with a specialized Border Control Post (BCP), even if the product is not subject to documentary checks, as per the following timetable:
- 1 July 2022 - All remaining regulated ABP and all meat and meat products;
- 1 September 2022 - All dairy products;
- 1 November 2022 - All remaining regulated products of animal origin, including composite products and fish products.
What should you do now?
If you are an EU exporter to GB, you must classify your goods correctly and provide specific goods descriptions on all commercial paperwork.
Please ensure that you provide the following information on your commercial documents or create an IPAFFS summary page:
- What type of animal product or goods you’re sending (i.e., POAO, ABP, HRFNAO etc.);
- Origin of the animal product or goods (which country it was produced, originated in);
- Commodity code;
- Commodity type;
- Species of the commodity;
- Commodity weight (kg);
- Reason for exporting consignment (i.e. internal market, transit, research, etc.);
- Consignment’s place of destination;
- Addresses and contact details for place of origin, importer and place of destination.
You should also start preparing for July 1, 2022 when you will be required to provide Export Health Certificates (EHC) for your goods before you ship them.
If you are sending marine-caught fish and some shellfish in addition you must ensure you include a validated Catch Certificate with your commercial paperwork.
If you are the GB importer and we contact you for clearance instructions, please provide all requested information in a timely manner.
If you decide to complete your IPAFFS pre-notification yourself, please ensure you inform us about your authorization number before the goods arrive in GB. In order to do so, please email us stating your air waybill (AWB) number in the subject field of the email and your authorization number in the email body. The email addresses to use are as follows:
- For FedEx shipments: mailto:stncustomsadmin@corp.ds.fedex.com
- For TNT shipments: GBTNTIPAFFS@fedex.com
Useful Resources
Import of products, animals, food and feed system (IPAFFS) – GOV.UK (www.gov.uk)
What’s happened?
The EU-Vietnam Free Trade Agreement (EVFTA) came into force on August 1, 2020. It will replace the EU’s Generalised System of Preferences (GSP) scheme for Vietnam.
Who does it affect?
Anyone importing or exporting between the EU and Vietnam, with goods of EU or Vietnam origin.
What will change?
The EVFTA will:
- Eliminate the majority of customs duties immediately
- Phase out tariffs on the remainder of goods covering up to 99% of all trade by 2030
- Simplify and modernise customs and rules of origin procedures, cutting red tape and reducing costs for businesses
- Streamline technical and non-tariff barriers to trade which unnecessarily restrict business
- Establish a legal framework for trade through the EU-Vietnam Investment Protection Agreement (EVIPA), which guarantees the rights of businesses and consumers on both sides. This will come into effect at a later date.
Collectively, the agreements aim to promote sustainable development on both sides, for stronger employment, environmental, and human rights protection.
What should you do now?
Vietnam is currently part of the EU’s GSP scheme and this will remain in place for up to two years. You can decide if you prefer to use the GSP or FTA for this period, but you should be aware that the conditions for GSP may vary from the FTA.
EU exporters must complete a statement of origin made out on the commercial invoice to qualify for the FTA. For shipments above €6,000, EU exporters will also need to register in the REX system.
Vietnam exporters must complete a statement of origin made out on the commercial invoice to qualify for the FTA. For shipments above €6,000, Vietnam exporters will also require a certificate of origin.
To find out more about the EVFTA you can read this comprehensive guide, while information on the FTA’s rules of origin requirements are available in the EU’s guidance document.
Additional tips and customs resources
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