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On May 1st U.S. Customs and Border Protection issued additional guidance on import duties on certain automobiles through Cargo Systems Messaging Service # 64916652 (the “CSMS”). The CSMS provided the following information:

  • 9903.94.05: 25% tariff will apply to parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks classifiable in subsection (g) of the Auto Parts Tariffs.
  • 9903.94.06: 0% tariff will apply to all entries classifiable under HTS provisions listed in subdivision (g):
    • That are eligible for special tariff treatment under the USMCA, other than automobile knock-down kits or parts compilations; or
    • That are not parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks

The CSMS also stated that goods entered under chapter 98 subject to the additional duties “shall be eligible for and subject to the terms of such provision and applicable CBP regulations,” with the exception of 9802.00.60 for which duties “shall be assessed based upon the full value of the imported article.”

Chapter 99 may not be used to set forth a lower rate of duty or provide duty-free treatment, “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 heading 9903.94.05.” The CSMS also stated that all antidumping, countervailing, or other duties shall continue to be imposed in addition to the duty in heading 9903.94.05.

We advise clients to contact the Husch Blackwell International Trade & Supply Chain team for specific questions related to your imports.

The Husch Blackwell Trade team continues to monitor developments and will provide additional updates as they arise.