U.S. Customs and Border Protection (CBP) published a reminder, which provides updated guidance regarding import duties on certain automobile parts.
Key Dates and Events:
March 26, 2025: The President issued Proclamation 10908 on Adjusting Imports of Automobiles and Automobile Parts into the United States. This proclamation imposed a 25 percent ad valorem tariff on parts of passenger vehicles and light trucks from all countries under Section 232 of the Trade Expansion Act of 1962.
April 3, 2025: Presidential Proclamation 10908 and its annex were published in the Federal Register Notice (FRN) (90 FR 14705).
May 3, 2025 (specifically 12:01 a.m. Eastern Daylight Time): This is the effective date and time for the 25 percent duty. The tariff applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after this time.
Summary of the New Duty:
A 25 percent additional duty is imposed on certain automobile parts.
This applies to parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks from all countries.
The affected parts are classifiable under specific Harmonized Tariff Schedule of the United States (HTSUS) provisions listed in subdivision (g) or meeting criteria in subdivision (h), as described under headings 9903.94.05 and 9903.94.06.
Heading 9903.94.05 applies the 25% additional rate.
Heading 9903.94.06 applies a 0% additional ad valorem rate of duty under specific conditions, such as eligibility for USMCA special tariff treatment (except for certain kits/compilations) or when the articles are not parts of passenger vehicles and light trucks.
For Foreign Trade Zones (FTZs), affected automobile parts admitted on or after 12:01 a.m. daylight standard time on May 3, 2025, must generally be admitted as “privileged foreign status” and will be subject to the duties upon entry for consumption.
No drawback is available for these additional duties.
The duty under heading 9903.94.05 is generally in addition to other special rates or duties, including antidumping, countervailing, or other charges.
The original CSMS update may be found here.
Automobile Parts HTS List can be found here.
JSC will continue to monitor the situation and provide updates when available. If you have any questions, please contact our Compliance Team or your JSC account supervisor.
