In a soon to be published Federal Register Notice, the United States Trade Representative (USTR) is modifying its May 9, 2019 notice increasing tariffs on Section 301 List 3 goods from 10 percent to 25 percent on May 10.

The May 9 notice included an “on water” exception for items exported to the United States that were in transit before May 10 (i.e., they are not subject to 25 percent tariffs).

The modification from USTR states all Section 301 List 3 items must enter the United States by June 1, 2019 in order to receive the 10 percent tariff. All goods entering the U.S. after that will be subject to the higher 25 percent rate.