Tariff update on CULTURED pearls?

acp-pearls said:

I'm wondering what the Tucson Gem Show will look like if tariffs don't ease soon.

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• CBP relies on the importer's diligence. While some high-end labs use X-rays to distinguish between natural and cultured pearls, CBP relies on the importer to exercise "reasonable care" in certifying the product's description. The importer files a claim for preferential tariff treatment and provides the necessary documentation.
• Isotopic testing is a tool, not a universal practice. As a verification tool, CBP may conduct isotopic testing on some imports. However, this is primarily used for targeted enforcement in high-risk supply chains and is not feasible for every single import.
• CBP can perform an origin verification. If there is doubt about the legitimacy of a claim, CBP has the authority to conduct a formal origin verification of the exporter to ensure they meet the rules of the trade agreement.
• Misclassification is an importer's risk. Importers face penalties if they misrepresent the nature of a product to avoid paying tariffs. These penalties can be severe, so it is in the importer's best interest to provide accurate information.

jshepherd said:

I had a call with John Ford of AGTA on Tuesday about the tariff situation. There are some countries that may eventually see relief (China not likely being one of them), but there is a process each needs to go through and it is time consuming. As for now, cultured pearls are not exempt.

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Effective Tariff Rate for HTS 7101.22.3000​

1. Normal Column 1 Rate (Base Rate):
   
   The standard HTSUS rate for 7101.22.3000 is Free (0%).2 This is the rate for products not subject to trade action tariffs.
2. Trade Action Tariffs (Additional Duties):
   
   Since the pearls are from China, they are subject to at least two key tariffs, which have been modified by the summit agreement:
   
   • The Fentanyl-related Tariff (Executive Order 14256/14266): This tariff was originally 20% on all Chinese goods and was halved to 10% as part of the Busan agreement.3
     
     
     
     
   • The Baseline Reciprocal Tariff (Executive Order 14257/14334): This general tariff on Chinese goods was 10% for many products.
3. Estimated Total Effective Rate:
   
   The trade actions are stacked on top of the base rate.4
   
   $$\text{Total Effective Tariff Rate} = \text{Base Rate} + \text{Fentanyl-related Tariff} + \text{Baseline Reciprocal Tariff}$$
   $$\text{Total Effective Tariff Rate} = 0\% + 10\% + 10\% = \mathbf{20\%}$$