Important Update: New Reciprocal Tariffs Effective April 9th
April 4, 2025
Important Update: Reciprocal Tariffs Effective April 5, 2025
April 4, 2025
New 25% Import Duty on Passenger Vehicles & Light Trucks – Here’s What You Need to Know
CSMS # 64624801 – GUIDANCE: Import Duties on Certain Automobiles
The purpose of this message is to provide guidance on the 25% duty on imports of passenger vehicles and light trucks from all countries effective as of 12:01 Eastern Daylight Time on April 3, 2025.
BACKGROUND
On March 26, 2025, the President issued Proclamation 10908 on Adjusting Imports of Automobiles and Automobile Parts into the United States, imposing a 25 percent ad valorem tariffs on certain imports of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks from all countries, under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862) (Section 232), effective April 3, 2025. See Presidential Proclamation 10908 and annex published in the Federal Register on April 3, 2025.
ENTRY FILING INSTRUCTIONS
This guidance provides instructions for importers, brokers, and filers on submitting entries to U.S. Customs and Border Protection (CBP) pertaining to tariffs on passenger vehicles and light trucks from all countries that are provided for in headings 9903.94.01, 9903.94.02, 9903.94.03 and 9903.94.04 listed in subdivisions (a), (b), (c), (d), and (e) of U.S. note 33 to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS).
The 25 percent tariff will take effect with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time on April 3, 2025. See Presidential Proclamation 10908 and annex published in the Federal Register on April 3, 2025.
The Section 232 automobile measures apply to all imported products classifiable in the provisions of the HTSUS listed here, as described under headings 9903.94.01, 9903.94.02, 9903.94.03 and 9903.94.04:
8703.22.01 8703.23.
8703.31.01 8703.32.
8703.40.00 8703.50.
8703.70.00 8703.80.
8704.21.01 8704.31.
8704.51.00 8704.60.
9903.94.01: Applies to imports of passenger vehicles and light trucks from all countries except as provided for in headings 9903.94.02, 9903.94.03, and 9903.94.04.
25% additional ad valorem rate of duty
9903.94.02: Applies to imports classifiable under the Chapter 87 HTSUS classifications listed above,
1) that are not passenger vehicles and light trucks; or
2) the U.S. content of passenger vehicles and light trucks that have received approval from the Secretary of Commerce as noted under HTSUS 9903.94.03.
0% additional ad valorem rate of duty
Contact the U.S. Commerce Department for details on the process to request such approval from the Secretary of Commerce to apply the 25% ad valorem rates of duty exclusively to the value of the non-U.S. content of the passenger vehicles and light trucks.
DO NOT REPORT ANY DUTIES BASED ON U.S. CONTENT UNDER THIS HTSUS CLASSIFICATION UNTIL FURTHER GUIDANCE IS PROVIDED.
9903.94.03: Applies to the non-U.S. content of passenger vehicles and light trucks eligible for special tariff treatment under the United States-Mexico-Canada Agreement (USMCA), upon approval from the Secretary of Commerce to apply the 25% ad valorem rates of duty exclusively to the value of the non-U.S. content of the automobile.
25% additional ad valorem rate of duty
Contact the U.S. Commerce Department for details on the process to receive approval from the Secretary of Commerce.
DO NOT REPORT ANY DUTIES BASED ON NON-U.S. CONTENT UNDER THIS HTSUS CLASSIFICATION UNTIL FURTHER GUIDANCE IS PROVIDED
9903.94.04: Applies to all entries of passenger vehicles and light trucks from all countries classifiable in the headings or subheadings listed above that were manufactured in a year at least 25 years prior to the year of the date of entry.
0% additional ad valorem rate of duty
Any importer entering the passenger vehicle or light truck covered shall provide any information that may be required, and in such form, as is deemed necessary by CBP in order to permit the administration of this heading.
FOREIGN TRADE ZONE
Any passenger vehicles or light trucks, except those that are eligible for admission to a foreign trade zone under “domestic status” as defined in 19 CFR 146.43 and are admitted into a United States foreign trade zone on or after 12:01 a.m. daylight standard time on April 3, 2025, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41. Such articles will be subject, upon entry for consumption, to the duties imposed by this order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission into the United States foreign trade zone.
DRAWBACK
No drawback is available with respect to the additional duties imposed pursuant to the Executive Order, as implemented in the Federal Register Notice.
CHAPTER 98 PROVISION
Goods for which entry is claimed under a provision of chapter 98, and which are subject to the additional duties prescribed herein shall be eligible for and subject to the terms of such provision and applicable CBP regulations, except that duties under subheading 9802.00.60 shall be assessed based upon the full value of the imported article.
No claim for entry or for any duty exemption or reduction shall be allowed for the passenger vehicles or light trucks that are subject to the additional duties prescribed herein under a provision of chapter 99 that may set forth a lower rate of duty or provide duty-free treatment, taking into account information supplied by CBP, but any additional duty prescribed in any provision of this subchapter or subchapter IV of chapter 99 shall be imposed in addition to the duty in headings 9903.94.01 and 9903.94.03.
All antidumping, countervailing, or other duties and charges applicable to such goods shall continue to be imposed in addition to the duty in headings 9903.94.01 and 9903.94.03.
Reminder: Importers, brokers, and/or filers should refer to CSMS # 64018403 (Updated Entry Summary Order of Reporting For Multiple Harmonized Tariff System (HTSUS) in the Automated Commercial Environment (ACE) for guidance when filing an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise.
Questions from the importing community concerning ACE entry rejections involving automobile filings should be referred to their Western Overseas Representative.
