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European Union Duty Increases 5%

The European Union duty increase went in effect March 1, and covers more than $4 billion worth of U.S. goods.

These additional duties start at 5% and increase 1% per month over the next 12 months to a projected additional duty rate of 17% by March 2005. The assessment of these additional duties, spread over 1,600 harmonized system (HS) classifications, was approved by the WTO after the U.S. failed to repeal tax breaks identified as illegal subsidies by the WTO in 2002.

This is not the only brawl developing between the U.S. and the EU. The two economic titans are scheduled to clash again on March 19 in Brussels when the WTO considers an EU request to open an investigation into the way the U.S. calculates anti-dumping rules.

The XPORTA Global Trade Intelligence database contains this updated information, and other daily changes to global sourcing cost factors.

For an immediate assessment on your specific exposure to this duty increase, XPORTA offers an 'Urgent Care' service. This service provides a review of the specific impact this duty increase may have on your product(s) and estimates the financial impingement of this additional duty to your firm.

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