Tariffs Added to French and German Wines and Certain Civil Aircraft Parts

Effective January 12, 2021, additional 15% tariffs are being imposed on US entries of French and German wine and certain civil aircraft parts, including fuselages and fuselage sections, wings and wing assemblies and horizontal vertical stabilizers. Although aircraft parts were previously considered in a published notice, the US Trade Representative (USTR) excluded these products from its prior action. USTR announced the action in a January 6, 2021 notice published in the Federal Register responding to the November 2020 tariffs implemented by the EU in the Large Civil Aircraft Matter. 
 
The USTR took this action to align the effects of the EU and US tariff measures previously implemented since the US and EU had used different methods to calculate trade values (the EU benchmark reference period incorporated the economic effects of COVID 19, whereas the US’s benchmark data tracked the period preceding the outbreak of COVID-19).

 

How BDO can help

Customs duties, VAT and trade policy present unique challenges that businesses face when conducting regulated cross-border transactions. BDO’s Customs and International Trade Services practice can help businesses navigate the complex rules governing cross-border product movements to minimize duty and tax payments and maximize import and export compliance.
 
Our services include: 

• Tariff classification reviews
• FTA qualification
• Customs valuation and transfer pricing analysis
• Import and export compliance assessments
• Supply chain planning
• Customs rulings, protests and other administrative filings
• VAT registration