What if the tariffs go into effect April 2?

As we get closer to April 2, learn how Chit Chats can help you transition smoothly should tariffs go into place and what you can do to prepare.

While we have no firm confirmation on what will happen on April 2, we want to keep you informed on how you can prepare in the event that tariffs are imposed. 

Our team is working on a DDP (Delivered Duty Paid) U.S. postage option that will use USPS as the carrier. This postage will require any customs duties and taxes be paid at the time of purchasing your postage. The benefit of this is that the recipient of the package will not be required to pay any fees. If the tariffs are announced to go into effect Wed, Apr 2, then any USPS postage purchased (Chit Chats U.S. Select, Edge, USPS Priority Mail) would need to be reworked with our DDP solution or the DDU option currently available. 

The DDU option (duties paid by the receiver) is currently available via Canada Post Tracked Packet USA and if the tariffs do go into place, there would be no workflow changes if you are using this postage type. The main difference would be that duties would now be charged at the time of delivery. 

How should I prepare?

To prepare for the potential U.S. DDP postage option, we highly recommend gathering some mandatory requirements that will be required so that you’re ready should tariffs go live. To access the DDP postage shippers will need to provide:

• HTS code
• Manufacturer business name
• Manufacturer contact name
• Manufacturer address 

It is also important to ensure accurate labeling and product descriptions are provided to comply with stricter border inspections. Reference CBP labelling requirements.

While what we have heard is that tariffs are likely going to be implemented on goods with the country of origin Canada, Mexico and China/Hong Kong, we won’t know until further notice from the White House. We have learned that should tariffs be implemented on goods from China/Hong Kong there will also be a secondary requirement if using the DDP postage option to ship these goods. The limit per HTS code per shipment with products of a country of origin being China/Hong Kong will be $250 USD. 

Common questions

How tariffs & duties would be calculated? I don’t know my HTS, so I’m just going to guess?

Tariffs and duties are calculated based on the country of origin and the HTS code associated with the product. It is the shipper’s responsibility to provide accurate information as U.S. Customs can have heavy fines if this is misrepresented. 

We have multiple resources that can help:

• Chit Chats HTS Lookup Tool 
• Official Harmonized Tariff Schedule Code Resource
• Tariff Finder 
  • You may need to expand the subheader in order to see the 10 digit HTS code.
• Canada Post – Find a Harmonized System Code
  • You will have to add the country of origin in order to find the HTS code after obtaining the HS code.
• Webinars
• HTS Support Article
• Manufacturer Details Support Article

What if the duties are under or over paid? Will I be refunded?

Similar to postage adjustments, any duties that are over or under paid will be adjusted to your Chit Chats account. 

I don’t know my country of origin or manufacturer info so how can I buy the DDP postage option?

Unfortunately, both of these are mandatory in order to use DDP postage. If you are unable to provide this, the only available option would be the DDU option, and a COO is required as well.