Updated Guidance from CBP on Japan Agreement and Modification of Duties

Updated Guidance from CBP on Japan Agreement and Modification of Duties

On September 15th, CBP sent out CSMS# 66242844 with additional information on how to proceed with imports from Japan specifically regarding EO 14345.

This is affecting all general reciprocal tariffs for Japan and there are separate guidelines for civil aircraft, automobile and automobile parts, along with products subject to section 232.

Here’s a summary of what the CSMS clarified for imports from Japan:

1. General Reciprocal Tariff (Japan)

• Rule: Depends on Column 1 duty rate (ad valorem or equivalent).
  • ≥ 15% duty: No reciprocal tariff (use 9903.02.72).
  • < 15% duty: Combined rate = 15% (use 9903.02.73).
• Specific/Compound duties: Convert to ad valorem equivalent by dividing the duty owed by customs value.
  • Example: $0.50 per kg duty ÷ $10/kg customs value = 5%.
• Key Dates:
  • Applies to entries on/after Aug 7, 2025.
• Corrections/Refunds:
  • Update within 10 days of release before duty deposit.
    • This will automatically be done by Western Overseas if it falls under this criteria.  We will notify you of the change in duty with a corrected 7501 so you have it for your records.
  • If duties already deposited → request refund via liquidation (PSC or protest under 19 U.S.C. 1514).

2. Civil Aircraft (Japan)

• Tariffs Removed: No longer subject to reciprocal or Section 232 (aluminum, steel, copper, auto) tariffs.
• Coverage: Civil aircraft, parts, engines, simulators (except military and unmanned aircraft).
• Note: Still must meet General Note 6 (Civil Aircraft Agreement).

3. Automobiles & Automobile Parts (Japan)

• Effective Date: Sept 16, 2025.
• Section 232 Duties:
  • Automobiles:
    • Column 1 ≥ 15% → duty = Column 1 (no extra). Use 9903.94.40.
    • Column 1 < 15% → total = 15%. Use 9903.94.41.
  • Auto Parts:
    • Column 1 ≥ 15% → duty = Column 1. Use 9903.94.42.
    • Column 1 < 15% → total = 15%. Use 9903.94.43.
• Stacking Tariffs: Section 232 auto tariffs may stack with other tariffs unless specifically exempt.
• Important: Autos/parts at 0% Section 232 duty (9903.94.40 / 9903.94.42) are not considered subject to 232 auto duties.

4. Products Subject to Section 232 (Japan)

• Continue to be exempt from Reciprocal tariffs.
• Citations: Aluminum (9704), Steel (9705), Copper (10962), Autos/Parts (10908).
• Stacking Provision: EO 14289 and Proclamation 10947 govern tariff stacking.

5. Exemptions

• Other Reciprocal tariff exemptions remain:
  9903.01.25, 9903.01.30–.33, and 9903.01.34.

✅ Key Takeaway:

• For Japan goods, the reciprocal tariff now ties to whether Column 1 duty is above or below 15%.
• Civil aircraft are carved out entirely.
• Automobiles and parts now follow their own Section 232-based 15% rule.
• Section 232 duties still override reciprocal tariffs in most cases.

Here is the link for the complete CSMS issued by CBP.  CSMS # 66242844 – Updated Guidance – Implementation of the United States-Japan Agreement and Modification of Duties on Imports from Japan

If you have any further questions, please contact your Western Overseas Representative.