Newsflash: United States and China Reach Phase One Trade Agreement

December 13, 2019

Dear Valued Customer,

The United States and China have reached an agreement on a Phase One trade deal to de-escalate the ongoing trade war between the countries. The agreement, announced on December 13, by the United States Trade Representative (“USTR”), includes agreements from China to purchase American goods and reform certain trade practices deemed harmful to the U.S.

In exchange, the U.S. will cancel plans to impose new tariffs of 15% on $156 billion in annual imports from China (List 4B), which was planned to go into effect December 15, 2019. Additionally, the U.S. will reduce the tariff rate on List 4A products from 15% to 7.5%. According to the USTR, the 25% tariffs currently in effect for Lists 1, List 2, and List 3 will remain in effect pending future phases of the agreement.

Details as to when and how the tariff rate reductions will go into effect will be available when the agreement is finalized and published in the Federal Register.

Link to USTR statement.

Thank You,

Tariff Updates & Trade Compliance Updates

CBP (U.S. Customs and Border Protection) is moving fully electronic: After nearly 28 years of issuing paper checks, CBP will transition all refunds to electronic payments beginning February 6, 2026, with only limited exceptions.
Act Now to Avoid Delays: With a short window to prepare, importers should act now to prevent disruptions to duty drawback claims, Post Summary Corrections (PSC), and other post-entry refunds. Importers already enrolled in the electronic refund program should review their setup to ensure payments are received without interruption.
Supreme Court Update – Value of Services (VOS) Selections: While no decision has been issued, importers may want to prepare for potential changes. If favorable, IEEPA tariffs could no longer apply, though refunds would require documentation and follow-up. Keeping detailed records and ensuring electronic refund information is current can help you stay ready.

Helpful U.S. Customs and Border Protection (CBP) Resources to Get Started:

CBP Trade Portal Account: Use this portal to manage your trade account, update company information, and oversee electronic transactions with CBP. This is the primary platform for maintaining refund eligibility.
Modernized Automated Commercial Environment (ACE) Importer Account Application: This application allows importers to establish or update their trade account, a required step for enrolling in electronic refund payments.
Automated Clearing House (ACH) Refund Enrollment Guidance: U.S. Customs and Border Protection’s official guidance explains how to enroll in ACH for electronic refunds, including key requirements, timelines, and system updates importers should be aware of.

How Imperative Logistics Can Support You:

Electronic Refund Readiness: We provide guidance to help ensure your trade portal access and ACH electronic payment setup are ready for CBP’s new electronic refund process. The trade portal is U.S. Customs and Border Protection’s online system for managing import and export activity, while ACH is the banking network used to receive refunds electronically.
Refund & Post-Entry Guidance: Our team can help clarify how to track refunds and manage post-entry processes under CBP’s updated electronic-only refund requirements.
Third-Party Authorization Support: For importers who work with brokers or other third parties, we provide guidance on properly designating authorized parties under CBP rules.
Keeping You Informed: We monitor CBP notices, Federal Register updates, and regulatory trends, turning complex information into clear, actionable guidance so your business can stay compliant and prepared.

Have questions about how these tariff changes affect your shipments? Our team of experts is ready to provide guidance, please Contact Us anytime. For further details, please consult the latest Tariff Update and Reciprocal Tariff List for comprehensive information.

View the latest Tariff Information: