Guidance – Implementation of Tariff

CSMS # 66336270 - Guidance – Implementation of Tariff-Related Elements of the United States-European Union Framework Agreement U.S. Customs and Border Protection sent this bulletin at 09/24/2025 05:58 PM EDT   Cargo Systems Messaging Service CSMS # 66336270 - Guidance – Implementation of Tariff-Related Elements of the United States-European Union Framework Agreement Executive Order (EO) 14346, “Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements” signed on September 5, 2025, directed and authorized the Secretary of Commerce (Commerce), the Secretary of Homeland Security, and the United States Trade Representative (USTR) to take all necessary actions to implement and effectuate EO 14346, and further directed Commerce and USTR to determine whether the United States must take any action to implement a final trade and security framework agreement between a foreign trading partner and the United States, including any necessary modifications to the Harmonized Tariff Schedule of the United States (HTSUS) through notice in the Federal Register .    Based on the authorization of EO 14346, Commerce and USTR are publishing a notice in the Federal Register to modify the HTSUS as they, in consultation with U.S. Customs and Border Protection (CBP) and the U.S. International Trade Commission (ITC), have determined to be necessary and appropriate to effectuate the EO and the Framework on an Agreement on Reciprocal, Fair, and Balanced Trade (the EU Framework Agreement) that was announced by the United States and the European Union (EU) on August 21, 2025. On September 24, 2025, Commerce posted, “Implementing Certain Tariff-Related Elements of the U.S.-EU Framework on an Agreement on Reciprocal, Fair, and Balanced Trade” ( 2025-18660.pdf ), with the relevant HTSUS modifications for public inspection in the Federal Register, with a scheduled publication date of September 25, 2025.  CBP’s updated guidance below is based on the HTSUS modifications announced in this notice scheduled for publication on September 25, 2025.   The Federal Register Notice (FRN) includes modifications to the International Emergency Economic Powers Act (IEEPA) and Section 232 of the Trade Expansion Act of 1962 (Section 232) tariffs applicable to imported articles that are products of EU member countries (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia (Czech Republic), Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden).  The FRN amends the HTSUS to adjust tariffs on certain articles that are products of EU member countries, including automobiles and automobile parts, unavailable natural resources (including cork), aircraft and aircraft parts, and generic pharmaceuticals and their ingredients and chemical precursors.   Specifically, this FRN modifies the additional rates of duty applicable to products of EU member countries set forth in the following five previous presidential actions: ·       Executive Order 14257 of April 2, 2025, (Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits), as amended; ·       Proclamation 10908 of March 26, 2025, (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended; ·       Proclamation 9704 of March 18, 2018, (Adjusting Imports of Aluminum Into the United States), as amended; ·       Proclamation 9705 of March 8, 2018, (Adjusting Imports of Steel Into the United States), as amended; ·       Proclamation 10962 of July 30, 2025, (Adjusting Imports of Copper Into the United States), as amended.   These HTSUS modifications will be deployed in the Automated Commercial Environment (ACE) at 12:01 a.m. eastern daylight time on September 25, 2025, the date that the FRN will be published in the Federal Register.  Filers can update their previously filed entries to apply the newly issued HTSUS numbers as needed after they are deployed on September 25, 2025.   UPDATED GUIDANCE FOR APPLICATION OF MODIFIED DUTY RATES   Changes to Section 232 Duties on Automobiles and Automobile Parts The FRN modifies the Section 232 duties on passenger vehicles and light trucks (automobiles) and automobile parts that are products of EU member countries .   Effective for automobiles and automobile parts entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on August 1, 2025, the Section 232 tariff is based on the ad valorem Column 1 tariff applicable to the products.     Automobiles ·       For an automobile that is the product of an EU member country with a Column 1 duty rate greater than or equal to 15 percent ad valorem, the additional Section 232 duty rate is zero (0).  Use heading 9903.94.50 . ·       For an automobile that is the product of an EU member country with a Column 1 duty rate less than 15 percent ad valorem, the combined Column 1 and additional Section 232 duty rate is 15 percent ad valorem.  Use heading 9903.94.51 .   Automobile Parts ·       For an automobile part that is the product of an EU member country with a Column 1 duty rate greater than or equal to 15 percent ad valorem, the additional Section 232 duty rate is zero (0).  Use heading 9903.94.52 . ·       For an automobile part that is the product of an EU member country with a Column 1 duty rate less than 15 percent ad valorem, the combined Column 1 and additional Section 232 duty rate is 15 percent ad valorem.  Use heading 9903.94.53 .   Currently , all automobiles and automobile parts that are encompassed by HTSUS headings 9903.94.50, 9903.94.51, 9903.94.52, and 9903.94.53 have only ad valorem Column 1 duty rates, so ad valorem equivalent conversion is not applicable.   When submitting an entry summary to declare the 15 percent ad valorem duty on automobiles and automobile parts that are products of an EU member country, file using the appropriate HTSUS listed above followed by the appropriate classification under Chapter 1 to 97, HTSUS.  Report the 15 percent ad valorem duty on heading 9903.94.51 or 9903.94.53 and report the entry summary line value and 0 duty on the Chapter 1-97 HTSUS classification.   ·       Exception: If drawback may be claimed on the Column 1 duty paid for an automobile or automobile part that is a product of an EU member country, report the Column 1 duty amount on the Chapter 1 to 97 classification, and report the difference between 15 percent and the Column 1 tariff on heading 9903.94.51 or 9903.94.53.    For products covered by the HTSUS provisions identified above, entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on August 1, 2025, filers should take action to correct entries as necessary to reflect the modified duty rate applicable under headings 9903.94.50 through 9903.94.53, as soon as possible.  For entries filed within the last 10 days, correct entries within 10 days of the cargo’s release from CBP custody and prior to estimated duties being deposited to avoid needing refunds.  For unliquidated entries for which estimated duties have already been deposited, importers may file a post summary correction (PSC) to request a refund.  Upon PSC approval, the refund will be issued at liquidation.  For liquidated entries, importers may request a refund by filing a protest within 180 days after liquidation in accordance with 19 U.S.C. 1514.   Continued Exemption from Reciprocal Tariffs for Products Subject to Section 232 As provided in heading 9903.01.33 and subdivision (v)(vi) through (v)(xii) of note 2 to subchapter III of the HTSUS, products of EU member countries that are subject to the Section 232 tariffs imposed by the following Presidential Proclamations continue to be exempt from Reciprocal tariffs: ·       Proclamation 9704 of March 18, 2018, (Adjusting Imports of Aluminum Into the United States), as amended; ·       Proclamation 9705 of March 8, 2018, (Adjusting Imports of Steel Into the United States), as amended; ·       Proclamation 10962 of July 30, 2025, (Adjusting Imports of Copper Into the United States), as amended; ·       Proclamation 10908 of March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States).   Filers should continue to file using heading 9903.01.33 for products that are exempt from Reciprocal tariffs because they are subject to the above Section 232 tariffs.   The automobiles and automobile parts subject to the duties described above, are subject to the unstacking provisions of Executive Order 14289, “Addressing Certain Tariffs on Imported Articles,” 90 FR 18907 (May 2, 2025), modified by Proclamation 10947, “Adjusting Imports of Aluminum and Steel into the United States,” 90 FR 24199 (June 3, 2025).   Changes Pursuant to the “Potential Tariff Adjustments for Aligned Partners” (PTAAP) Annex of EO 14346 Civil Aircraft Products of EU member countries that fall under the World Trade Organization Agreement on Trade in Civil Aircraft, are no longer subject to additional tariffs imposed through: Executive Order 14257 of April 2, 2025 (Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits), as amended; Proclamation 9704 of March 18, 2018 (Adjusting Imports of Aluminum Into the United States), as amended; Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), as amended; Proclamation 10962 of July 30, 2025 (Adjusting Imports of Copper Into the United States), as amended. For such civil aircraft products that are no longer subject to these additional tariffs, use heading 9903.02.76 .   9903.02.76 :  Effective with respect to products entered or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time September 1, 2025, articles of civil aircraft (all aircraft other than military aircraft); their engines, parts, and components; their other parts, components, and subassemblies; and ground flight simulators and their parts and components that are the products of the EU member countries, excluding unmanned aircraft, that otherwise meet the criteria of General Note 6 of HTSUS (Articles Eligible for Duty-Free Treatment Pursuant to the Agreement on Trade in Civil Aircraft), and are classified in the HTSUS classifications listed in subdivision (v)(xviii) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS, but regardless of whether a product is entered under a provision for which the rate of duty “Free (C)” appears in the “Special” sub column.   For products covered by heading 9903.02.76, entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time September 1, 2025, filers should take action to correct entries as necessary to reflect the exception under heading 9903.02.76, as soon as possible within 10 days of the cargo’s release from CBP custody and prior to estimated duties being deposited to avoid needing refunds.  For unliquidated entries for which estimated duties have already been deposited, importers may file a post summary correction (PSC) to request a refund.  Upon PSC approval, the refund will be issued at liquidation.  For liquidated entries, importers may request a refund by filing a protest within 180 days after liquidation in accordance with 19 U.S.C. 1514.   Reciprocal Tariff Exemption on Certain Products Certain products including unavailable natural resources and generic pharmaceuticals and their ingredients and chemical precursors that are products of EU member countries are no longer subject to Reciprocal tariffs effective for such products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time September 1, 2025.   For products covered by the HTSUS provisions identified below, entered for consumption or withdrawn from warehouse for consumption on or after12:01 a.m. eastern daylight time September 1, 2025, filers should take action to correct entries as necessary to reflect the exception under heading 9903.02.74, 9903.02.75, or 9903.02.77, as soon as possible within 10 days of the cargo’s release from CBP custody and prior to estimated duties being deposited to avoid needing refunds.  For unliquidated entries for which estimated duties have already been deposited, importers may file a post summary correction (PSC) to request a refund.  Upon PSC approval, the refund will be issued at liquidation.  For liquidated entries, importers may request a refund by filing a protest within 180 days after liquidation in accordance with 19 U.S.C. 1514.   9903.02.74 :   Effective with respect to products entered or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time September 1, 2025, products of EU member countries that are unavailable natural resources (including cork) as provided for in subdivision (v)(xvi) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS.   9903.02.75 :   Effective with respect to products entered or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time September 1, 2025,  products of EU member countries, that are essential oils other than those of citrus fruit, other, nesoi, classified under HTS 3301.29.51, for religious purposes only as provided for in subdivision (v)(xvii) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS.   Filers should ensure that all supporting documentation that substantiate proof of the product’s intended use for religious purposes be kept on file for recordkeeping purposes.   9903.02.77 :   Effective with respect to products entered or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time September 1, 2025, products of the EU member countries, that are not patented in the U.S., and that are  for use in pharmaceutical applications, classified in the subheadings enumerated in subdivision (v)(xix) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS.    Filers should ensure that all supporting documentation that substantiate proof that the products are non-patented articles for use in pharmaceutical applications are kept on file for recordkeeping purposes.   General Reciprocal Tariff As a reminder, pursuant to Executive Order 14236 of July 31, 2025, Further Modifying The Reciprocal Tariff Rates , the Reciprocal tariff currently in place for products of EU member countries, other than those products specified above , entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time August 7, 2025 is dependent on the Column 1 ad valorem or ad valorem equivalent duty rate applicable to the products.  ·       For a product of an EU member country with a Column 1 duty rate greater than or equal to 15 percent ad valorem, the additional Reciprocal tariff is zero (0).  Use heading 9903.02.19 .  ·       For a product of an EU member country with a Column 1 duty rate less than 15 percent ad valorem, the combined Column 1 and Reciprocal tariff rate is 15 percent ad valorem.  Use heading 9903.02.20 . (See also CSMS # 65829726 , GUIDANCE: Reciprocal Tariff Updates.)   For any product of an EU member country subject to a specific or compound rate of duty under column 1-General, the ad valorem equivalent rate of duty of such product is determined by dividing the amount of duty payable under column 1-General by the customs value of the product. For example, if a product were subject to a specific duty of 50 cents per kilogram, and one kilogram of the product were entered with a customs value of $ 10, then the ad valorem equivalent rate of duty would be obtained by dividing 50 cents by $ 10, yielding 5 percent.   When submitting an entry summary to declare the 15 percent ad valorem duty on products of EU member countries, file using heading 9903.02.20 followed by the appropriate classification under Chapter 1 to 97, HTSUS.   Report the 15 percent ad valorem duty amount on heading 9903.02.20 and report the entry summary line value and 0 duty on the Chapter 1 to 97 HTSUS classification.     Exemptions from Reciprocal Tariffs Beyond the changes explained above, all other aspects of the Reciprocal tariffs remain in effect for products of EU member countries, including the exemptions from the Reciprocal tariffs that are provided for products covered by HTSUS headings 9903.01.30, 9903.01.31, 9903.01.32, 9903.01.33 and 9903.01.34.   HTSUS Sequence and Duty Reporting For entry summary lines that include multiple HTSUS numbers, CBP requires that the duty be appropriately associated to the correct HTSUS number. Duties across several required HTSUS numbers on a given entry summary line must not be combined and cannot be reported on only one HTSUS number within the entry summary line.   For entry summary lines including multiple HTSUS secondary classifications (in addition to the Chapter 1-97 primary classification), the following sequence must be followed.   1. Chapter 98 classification (if applicable)   2. Chapter 99 classification(s) for additional duties (if applicable)   3. For trade remedies, if applicable ·       First report the Chapter 99 classification for Section 301, ·       Followed by the Chapter 99 classification for IEEPA Fentanyl, ·       Followed by the Chapter 99 classification for IEEPA Reciprocal, ·       Followed by the Chapter 99 classification for Section 232 or 201 duties, ·       Followed by the Chapter 99 classification for Section 201 or 232 quota   4. Chapter 99 classification(s) for REPLACEMENT duty or other use, e.g., MTB or other provisions (if applicable).  Please note replacement duty for the purposes of IEEPA or Section 232 are to be included in #3 above.   5. Chapter 99 classification for other quota (not covered by #3) (if applicable)   6. Chapter 1 to 97 primary classification for the commodity tariff   The entered value of the commodity covered by the entry summary line should be reported on the Chapter 1-97 subheading, except if Chapter 98 reporting provisions require the entered value to be reported differently.     CBP will provide additional guidance to the trade community through CSMS messages as appropriate.   If you encounter any errors in filing an entry summary, contact your CBP client representative or the ACE Help Desk. Questions regarding this message should be directed to Trade Remedy at traderemedy@cbp.dhs.gov . 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