Guidance – Implementation of Tariff

CSMS # 66987366 - Guidance – Implementation of Tariff-Related Elements of the United States-Korea Strategic Trade and Investment Deal U.S. Customs and Border Protection sent this bulletin at 12/03/2025 03:57 PM EST   Cargo Systems Messaging Service CSMS # 66987366 - Guidance – Implementation of Tariff-Related Elements of the United States-Korea Strategic Trade and Investment Deal On November 13, 2025, the United States and the Republic of Korea (South Korea) issued a Joint Fact Sheet reaffirming the July announcement of the Korea Strategic Trade and Investment Deal. On December 3, 2025, a Federal Register Notice (FRN), Federal Register :: Public Inspection: Implementing Certain Tariff-Related Elements of the U.S.-Korea Strategic Trade and Investment Deal , from the U.S. Department of Commerce and the Office of the United States Trade Representative, with the relevant Harmonized Tariff Schedule of the United States (HTSUS) modifications was posted for public inspection in the Federal Register, with a scheduled publication date of December 4, 2025. The guidance below is based on this Federal Register Notice which includes HTSUS 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 South Korea. Specifically, this FRN modifies the additional rates of duty applicable to products of South Korea set forth in the following six 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 8, 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 10976 of September 29, 2025 (Adjusting Imports of Timber, Lumber, and Their Derivative Products into the United States). The modifications have been deployed in the Automated Commercial Environment (ACE). Filers can update previously filed entries in line with these changes per the directions below. Importers and filers are reminded to refer to the updates in the HTSUS for the complete changes. UPDATED GUIDANCE FOR APPLICATION OF MODIFIED DUTY RATES The Section 232 and reciprocal duty rates covered by this message, except for heading 9903.76.23, are based on the column 1-General or column 1-Special duty rate in the HTSUS. The Special Program Indicator (SPI) “KR” must be present to make the duty determination based on the Column 1- Special duty rate under the Korean Free Trade Agreement (KORUS). For any product of South Korea subject to a specific or compound rate of duty under column 1, the ad valorem equivalent rate of duty of such product is determined by dividing the amount of duty payable under column 1 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. 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 South Korea. Effective for automobiles and automobile parts entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time on November 1, 2025, the Section 232 tariff is based on the ad valorem Column 1 (either Column 1-General or Column 1-Special) tariff applicable to the products. Automobiles For an automobile that is the product of South Korea 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 9903.94.60 . For an automobile that is the product of South Korea 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 9903.94.61 . If drawback may be claimed on the Column 1 duty paid for an automobile of South Korea, 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 9903.94.61. Automobile Parts For an automobile part that is the product of South Korea 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 9903.94.62 . For an automobile part that is the product of South Korea 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 9903.94.63 . For the HTSUS classifications covered by the Section 232 duties on automobiles and automobile parts, see CSMS 64624801 and 64916652, respectively. Self-Certifying Automobile Parts Applies to parts of passenger vehicles and light trucks (automobiles) when certified by the importer of record that such parts will be used for automobile production or repair activity in the United States, excluding articles classifiable in chapters 72, 73, or 76; and articles classifiable in the provision of subdivision (g) of U.S. note 33 (auto parts or in the provisions of subdivision (i) of U.S. note 38 (MHDV parts). Automobile parts, for this purpose, include engines and engine parts, transmissions and powertrain parts, and electrical components. Do not use the Chapter 99 classifications below for any auto parts that are subject to HTSUS 9903.94.62/63. To certify that such parts will be used for automobile production or repair activity in the United States, and not covered by the exclusions above, report one of the following Chapter 99 HTSUS: For an automobile part that is the product of South Korea 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 9903.94.64 . For an automobile part that is the product of South Korea 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 9903.94.65 . Automobiles and automobile parts subject to Proclamation 10908, as amended, are not subject to the additional duties imposed on: entries of semi-finished copper products and copper-intensive derivative products under heading 9903.78.01 entries of aluminum products under heading 9903.85.02 and 9903.85.12 entries of derivative aluminum products under headings 9903.85.04, 9903.85.07, 9903.85.08, 9903.85.13, 9903.85.14, and 9903.85.15 entries of iron or steel products under headings 9903.81.87, 9903.81.88, 9903.81.94 and 9903.81.95; entries of derivative iron or steel products under headings 9903.81.89, 9903.81.90, 9903.81.91, 9903.81.93, 9903.81.96, 9903.81.97, 9903.81.98 and 9903.81.99; entries of articles the product of Canada under heading 9903.01.10; entries of articles the product of Mexico under heading 9903.01.01; and entries of wood products under headings 9903.76.01, 9903.76.02 and 9903.76.03. (applies to parts only) Automobiles classified under HTSUS 9903.94.60 and auto parts classified under HTSUS 9903.94.62, 9903.94.64 and 9903.94.06 (based on eligibility for USMCA) are considered subject to Proclamation 10908, as amended, (for purposes of Executive Order 14289) and are also subject to the unstacking provisions of Executive Order 14289, “Addressing Certain Tariffs on Imported Articles,” April 29, 2025 , modified by Proclamation 10947 and Proclamation 10984. Section 232 duties for automobile parts, pursuant to Proclamation 10908, as amended and Proclamation 10984, as amended, continue to be eligible for Direct Identification Manufacturing Drawback Claims, under 19 U.S.C. 1313(a) and Substitution Manufacturing Drawback Claims under 19 U.S.C. 1313(b). This applies to the following HTS headings: _9903.94.63 and 9903.94.65 . Changes to Section 232 Duties on Wood Products Effective for certain kitchen cabinets and upholstered wooden furniture of South Korea, classified in the HTS provisions listed below and entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time on November 14, 2025, the combined Column 1 and additional Section 232 duty rate is 15 percent ad valorem . Use heading 9903.76.23 . 9401.61.4011 9401.61.4031 9401.61.6011 9401.61.6031 9403.40.9060 9403.60.8093 9403.91.0080 Section 232 duties on wood products, pursuant to Proclamation 10976, continue to be eligible for drawback. 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 South Korea 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 8, 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 10908 of March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended; Proclamation 10962 of July 30, 2025 (Adjusting Imports of Copper Into the United States); Proclamation 10976 of September 29, 2025 (Adjusting Imports of Timber, Lumber, and Their Derivative Products into the United States); Proclamation 10984 of October 17, 2025 (Adjusting Imports of Medium- and Heavy-Duty Vehicles, Medium- and Heavy-Duty Vehicle Parts, and Buses into the United States). Filers should continue to file using heading 9903.01.33 for products that are exempt from Reciprocal tariffs that are subject to the above Section 232 tariffs. Changes to Section 232 and Reciprocal Duties for Civil Aircraft Effective for 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 South Korea, 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 (vi)(xviii)(b) 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, entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time on November 14, 2025, the additional tariffs listed below are no longer applicable. Use heading 9903.02.81 . 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 8, 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. Changes to Reciprocal Tariff The reciprocal tariff for products of South Korea, entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time November 14, 2025, is dependent on the Column 1 ad valorem (or ad valorem equivalent) duty rate applicable. For a product of South Korea with a Column 1 (General or Special, whichever is applicable) duty rate greater than or equal to 15 percent ad valorem, the additional Reciprocal tariff is zero (0). Use heading 9903.02.79 . For a product of South Korea with a Column 1 (General or Special, whichever is applicable) duty rate less than 15 percent ad valorem, the combined Column 1 and Reciprocal tariff rate is 15 percent ad valorem. Use heading 9903.02.80 . When submitting an entry summary to declare the 15 percent ad valorem duty on imports that are products of South Korea, 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 9903.02.79 and report the entry summary line value and 0 duty on the Chapter 1-97 HTSUS classification. Reciprocal tariffs, pursuant to Executive Order 14257, as amended, continue to be eligible for drawback. Heading 9903.02.56 is no longer in use after November 13, 2025. Exemptions from Reciprocal Tariffs Beyond the changes explained above, all other aspects of the Reciprocal tariffs remain in effect for products of South Korea, 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. Correcting Previously Filed Entries Filers should take action to correct previously filed entries as necessary to reflect the modified duty rate applicable under the HTSUS provisions above as soon as possible. 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. 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. Chapter 98 classification (if applicable) Chapter 99 classification(s) for additional duties (if applicable) 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. Chapter 99 classification(s) for REPLACEMENT duty or other use. Please note that replacement duty for the purposes of IEEPA or Section 232 are to be included in #3 above. Chapter 99 classification for other quota (not covered by #3) (if applicable) 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 .       Update your subscriptions, modify your password or e-mail address, or stop subscriptions at any time on your Subscriber Preferences Page . You will need to use your e-mail address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com . This service is provided to you at no charge by U.S. Customs and Border Protection . Privacy Policy | GovDelivery is providing this information on behalf of U.S. Department of Homeland Security, and may not use the information for any other purposes. Powered by Privacy Policy | Cookie Statement | Help