New CBP Guidance for Applying Section 232 Import Duties on USMCA-Qualifying Passenger Vehicles and Light Trucks

CBP Guidance for Applying Section 232 Import Duties on USMCA-Qualifying Passenger Vehicles and Light Trucks

Customs and Border Protection (CBP) has provided guidance on applying the 25 percent Section 232 duty imposed by Proclamation 10908 exclusively to the value of the non-U.S. content for approved imports of passenger vehicles and light trucks qualifying for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA).

Background

On April 3, 2025, Presidential Proclamation 10908 authorized the Secretary of Commerce to approve imports of passenger vehicles and light trucks qualifying for preferential tariff treatment under USMCA to be eligible to apply the ad valorem tariff of 25 percent exclusively to the value of the non-U.S. content of the automobile. See 90 FR 14705.

On May 20, 2025, the Commerce Department issued “Procedures for Submissions by Importers of Automobiles Qualifying for Preferential Tariff Treatment Under the USMCA To Determine U.S. Content.” See 90 FR 21450.

Entry Filing Instructions

This guidance provides instructions for importers, customs brokers, and filers on submitting entries to CBP of passenger vehicles and light trucks that have received approval from the Commerce Secretary to apply the Section 232 tariff imposed by Proclamation 10908 exclusively to the value of the non-U.S. content, as provided for in headings 9903.94.02 and 9903.94.03 of the HTSUS. See 90 FR 14705.

The 25% tariff will apply exclusively to the value of the non-U.S. content with respect to certain USMCA-qualifying goods that were entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on April 3, 2025.

9903.94.03: Applies to the non-U.S. content of passenger vehicles and light trucks eligible for special tariff treatment under USMCA, upon approval from the Commerce Secretary to apply the 25% ad valorem rates of duty exclusively to the value of the non-U.S. content of the automobile.

25% additional ad valorem rate of duty

9903.94.02: Applies to imports classified under the Chapter 87 HTSUS to U.S. note 33(b) to Subchapter III to Chapter 99 provisions subject to Section 232 duties,

1) that are not passenger vehicles and light trucks; or

2) the U.S. content of passenger vehicles and light trucks that have received approval from the Secretary of Commerce as noted under HTSUS 9903.94.03.

0% additional ad valorem rate of duty

Reporting Instructions for Applying the Special Tariff Treatment Approved by the Commerce Department

Importers that receive approval from the Commerce Secretary should follow the instructions below on how to apply the 25% ad valorem duty exclusively to the value of the non-U.S. content.

The non-U.S. content and the U.S. content value of the passenger vehicle and light truck must be reported on two lines.

The first line will represent the value of the non-U.S. content while the second line will represent the value of the U.S. content. Each line should be reported in accordance with the instructions below.

Non-U.S. content, first line:

• Report the total quantity of the imported goods
• Report the value of the non-U.S. content approved by the Commerce Department for entered value
• Report the Section 232 duties based on the value of the non-U.S. content with HTSUS 9903.94.03.
• Report Special Program Indicator (SPI) code “S”
• Report Ch. 1-97 HTSUS, same HTSUS must be reported on both lines.
• Report country of origin, same country of origin must be reported on both lines.
• Report all other applicable duties, such as antidumping and countervailing duties

U.S. content, second line:

• Report 0 for quantity.
• Report the entered value of the U.S. content by subtracting the value of the non-U.S. content from the entered value of the article.
• Report the 0 duties based on the value of U.S. content with HTSUS 9903.94.02.
• Report Special Program Indicator (SPI) code “S”
• Report the same Ch. 1-97 HTSUS reported on the first line.
• Report the same country of origin reported on the first line.
• Report all other applicable duties, such as antidumping and countervailing duties.

If you have questions, our team is here to help.

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