There have been a lot of rumors circulating regarding the EU Tariffs after the USTR press release from yesterday and we want to take this opportunity to clear the air with what knowledge we have up to date. Firstly, the WTO has approved $7.5 Billion in retaliatory tariffs against the EU.  This is better than it could have been as the US was seeking $20 Billion.   The US will put these tariffs into place starting October 18th.  This means that all shipments arriving on or after October 18th or customs cleared on or after October 18th will be subject to the tariffs outlined in the prior mail.  According to our sources, this is 100% going to go in effect on October 18th.  If and when negotiation between the EU and the US will begin to reduce or eliminate these taxes is not known.

While we realize this is horrible news for our industry, the good news is the tariffs will only be effecting the following categories of items related to wines and spirits:

Section 2 – Products of the United Kingdom described below are subject to additional import duties of 25 percent ad valorem:

HTS Subheading Product Description
2208.30.30** Single-malt (or straight) Irish and Scotch Whiskies (described in 2208.30.30)

Section 6 – Products of Germany, Ireland, Italy, Spain, or the United Kingdom described below are subject to additional import duties of 25 percent ad valorem:

HTS Subheading Product Description
2208.70.00 Liqueurs and cordials

Section 7 – Products of France, Germany, Spain or the United Kingdom described below are subject to additional import duties of 25 percent ad valorem:

2204.21.50 Wine other than Tokay (not carbonated), not over 14% alcohol, in containers not over 2 liters

The following items will not be effected at all and will continue to pay the regular duty and tax rates:

Wines from Italy and Portugal are exempt.  All Sparkling wines are exempt. Liqueurs and Cordials from France are exempt. All Grappa’s and Cognacs (grape brandy) are exempt. All wines over 14% alcohol are exempt. All wines in containers over 2 liters are exempt.

We want to add that entering your products into a customs bonded facility is not a way around these tariffs.  If you enter the product into a bonded warehouse while the tariff is in place you will need to pay that tax upon withdrawal from the bonded warehouse even if the tariff has since expired.