Puerto Rico-Origin Goods Treated as Separate From US by China Customs, Compliance Expert Says
Exporters that produce and send goods from Puerto Rico to China may be able to avoid some of the tariffs on U.S. goods by using the U.S. territory as the origin, said Susie Hoeger, director of Global Trade Compliance and…
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Policy at Abbott Laboratories. Hoeger mentioned the tip while speaking at the American Association of Exporters and Importers Annual Conference in Washington on June 27. "Chinese Customs has chosen to treat Puerto Rico differently than the U.S.," she said. "So if you don't know this and make things in Puerto Rico, declaring that as Puerto Rico origin instead of U.S., which is all the same for us, the tariffs don't hit. They've chosen to carve that out for some reason." Census Bureau statistics seem to show a recent uptick in exports to China from Puerto Rico. According to Census, the value of goods exported from the territory to China increased by 53.6 percent from 2017 to 2018.