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Update: Guidance on Reciprocal Tariffs

 

Additional guidance has been provided by Customs and Border Protection (CBP) on the additional duties due on imported merchandise imposed by the Executive Order issued on April 2.

The following is a summary of countries and information specific to Transmodal's clients. You can find a complete listing on our blog - click here to read. Additional resources and reference materials are listed below.

Guidance: Chapter 99 Secondary Classification Required

With the implementation of the Executive Order, effective April 5, filers must report at least one HTSUS Chapter 99 secondary classification related to the reciprocal tariffs. All imported merchandise must be reported with either the HTSUS classification under which the reciprocal tariff applies or one of the HTSUS classifications according to which the merchandise is excepted from the reciprocal tariff.

Application of Duty Rates

The additional rates of duty established by reciprocal tariffs are in addition to any other duties, taxes, fees, exactions, and charges that apply to imported articles.

All imported goods, other than those that fall within the identified exceptions, entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on April 5, are subject to the following HTSUS secondary classification and duty rate:

Additional ad valorem duty rate of 10%

Effective April 9, a country-specific ad valorem duty rate will apply to imported goods of the listed countries and will replace the 10% additional ad valorem duty rate under 9903.01.25. Imported goods of the countries identified below, other than those that fall within the identified exceptions, entered for consumption, or withdrawn from the warehouse for consumption on or after 12:01 a.m. EDT on April 9, 2025, are subject to the following HTSUS classifications and additional ad valorem duty rates. 

Country-Specific Duties

9903.01.50:  Articles the product of Jordan or the European Union (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden) will be assessed an additional ad valorem rate of duty of 20%.

9903.01.53: Articles the product of Brunei, Japan, or Malaysia will be assessed an additional ad valorem rate of duty of 24%.

9903.01.54: Articles the product of South Korea will be assessed an additional ad valorem rate of duty of 25%.

9903.01.55: Articles the product of India will be assessed an additional ad valorem rate of duty of 26%.

9903.01.58: Articles the product of Pakistan will be assessed an additional ad valorem rate of duty of 29%.

9903.01.61:  Articles the product of Angola, Fiji, Indonesia, or Taiwan will be assessed an additional ad valorem rate of duty of 32%.

9903.01.63: Articles the product of China, including Hong Kong and Macau, will be assessed an additional ad valorem rate of duty of 34%.

9903.01.65: Articles the product of Thailand will be assessed an additional ad valorem rate of duty of 36%.

9903.01.71: Articles the product of Myanmar (Burma) or Sri Lanka will be assessed an additional ad valorem rate of duty of 44%.

9903.01.72: Articles the product of Vietnam will be assessed an additional ad valorem rate of duty of 46%.

9903.01.75: Articles the product of Cambodia will be assessed an additional ad valorem rate of duty of 49%.

Notes on Exceptions

The following exceptions have been announced.

Articles that were (1) loaded onto a vessel at the port of loading and in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. ET on April 5, AND (2) are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on April 5, and before 12:01 a.m. ET on May 27, 2025.

Articles of the countries that have an additional country-specific rate of duty, identified in 9903.01.43 – 9903.01.76, that were (1) loaded onto a vessel at the port of loading and in transit on the final mode of transport on or after 12:01 a.m. ET April 5 and before 12:01 a.m. ET April 9 and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. ET on May 27 are subject to the 10% additional rate in lieu of the country-specific rate of duty. Articles to which this in transit scenario applies must be reported under 9903.01.25.

To prevent importers from abusing the exceptions for goods that were in transit before April 5, 2025 or April 9, as applicable, CBP will permit heading 9903.01.28, or heading 9903.01.25 for products of countries covered by headings 9903.01.43 – 9903.01.76, as applicable, to be declared only for goods that are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. ET on May 27, 2025, after which time the exceptions would no longer realistically apply due to the passage of time. 

Article-Specific Exceptions

9903.01.31:  Articles that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.

9903.01.32: Articles of any country, classified in the subheadings enumerated in the subdivision (v)(iii) of U.S. note 2, identified in Annex II. The only merchandise that is eligible for this exception is that which is listed in Annex II. 

9903.01.33: Articles of iron or steel, derivative articles of iron or steel, articles of aluminum, derivative articles of aluminum, passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks and parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks, of any country, subject to Section 232. actions.

9903.01.34: For articles in which at least 20% of the value of article is U.S. originating, the U.S. content will not be subject to the reciprocal tariff. The reciprocal tariff will be assessed on the non-U.S. content. (See below for reporting instructions.)

Chapter 98

The additional duties imposed by the headings above shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS pursuant to applicable CBP regulations, and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed, as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad, less the cost or value of such products of the United States, as described.

Additional resources: