OK, so it turns out I'm about to splash a generous helping of egg on my face.
My previous post about what we can expect to pay in tariffs for the tricorder, like the information I got from Grok before I looked up the statute, is wildly, hilariously wrong.
My main mistake was failing to notice that there were not one, but
two Executive Orders on tariffs, and the second one (the one I missed) is specific to Chinese-origin goods.
And the second one is where all the action is regarding the tricorder.
Reed Smith LLP, a big, white-shoe law firm, have on their website a "
Trade Compliance Resource Hub." And unlike me, these guys
do practice trade law.
According to Reed Smith:
First, the tariff on the tricorder will turn on
country of origin, not where it's being shipped from. So that is, unfortunately, China.
Second, the de minimis exemption for Chinese-origin goods isn't subject to when the Commerce Dept. can institute collection methods (like it says in the first EO), but rather a hard date of May 2, 2025 (which is in the second EO). And
third, just how much we pay will turn on the
shipping method!
Here's the relevant bit from the Reed Smith website:
End of the de minimis exemption for Chinese-origin goods
Effective at 12:01 a.m. (ET) on May 2, 2025, the United States will end the duty-free
de minimisexemption for imports of Chinese-origin goods (including goods originating in Hong Kong). The
de minimis exemption typically applies to goods imported by one person on one day having a fair retail value not exceeding $800.
For goods valued at or under $800 that would otherwise qualify for the
de minimis exemption, the
duty rates will vary depending on the shipping method:
- For goods sent through means other than the international postal network, all applicable duties and tariffs will be due upon import. [I think this means FedEx, DHL, Amazon Prime, etc.]
- For goods sent through the international post network, the import will be subject to duties of 30% ad valorem or $25 per item (at the transportation carrier’s discretion) in lieu of any other duties, including those previously imposed by executive order. The per item dollar amount will increase to $50 per item on June 1, 2025....
And here's the wrinkle: I can't tell from the Amazon UK website how they ship to the US!
And here's the
other wrinkle: The tariffs don't apply to goods that get shipped out from China before the deadline!
Exceptions
The new reciprocal tariffs will not apply in the following circumstances:
- Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before the reciprocal tariffs take effect will not be subject to the baseline or country-specific ad valorem tariffs (as applicable).
So, all of this could be irrelevant for any of the tricorders TWC manages to ship out of China before May 2! And that could be a lot, or even all of the first run!
Confused yet? Yeah, me too. Oy.
