CBP Issues Updated Entry Filing
Guidance on Replacement Duties
U.S. Customs and Border Protection (CBP) has
released updated instructions for importers, brokers, and filers regarding
replacement Chapter 99 Harmonized Tariff Schedule (HTSUS) duty classifications
on certain imports from the European Union, Japan, and the United Kingdom.
This guidance supplements CSMS #65475725, #65829726, and #66242844.
Key Updates by HTSUS Heading
·
9903.02.20 (EU reciprocal tariff):
Products with a Column 1 duty <15% → total duty = 15%.
o
Report 15% duty on 9903.02.20.
o
Report 0 duty and line value under Chapters
1–97.
·
9903.02.73 (Japan reciprocal tariff):
Same as EU: Column 1 <15% → total duty = 15%.
o
Report 15% duty on 9903.02.73.
o
Report 0 duty and line value under Chapters
1–97.
·
9903.94.41 (Japan Section 232 automobile tariff):
Autos with Column 1 <15% → total = 15%.
o
Report 15% duty on 9903.94.41.
o
Report 0 duty and line value under Chapter
87.
·
9903.94.43 (Japan Section 232 auto parts tariff):
Auto parts with Column 1 <15% → total = 15%.
o
Report 15% duty on 9903.94.43.
o
Report 0 duty and line value under Chapters
1–97.
·
9903.94.32 (UK Section 232 auto parts tariff):
Parts with Column 1 <10% → total = 10%.
o
Report 10% duty on 9903.94.32.
o
Report 0 duty and line value under Chapters
1–97.
Exception
– Drawback Claims
·
Section 232 duties are not eligible for drawback.
·
For Japan autos (9903.94.41) and Japan/UK auto
parts (9903.94.43 / 9903.94.32):
o
Report Column 1 duty on Chapters 1–97.
o
Report the difference between total rate and
Column 1 on Chapter 99.
·
Example:
o
Auto from Japan (HTSUS 8703.22.01), Column 1 =
2.5%.
o
Total duty = 15% (2.5% + 12.5%).
o
Report 2.5% under Chapter 87, 12.5% under
9903.94.41.
o
Drawback only applies to the 2.5%.
Post Summary Corrections
Importers who misreported duty totals under these
headings must file post summary corrections to update entry summaries.
This message
updates CSMS #65475725, 65829726, and 66242844 to provide updated guidance for filing
replacement Chapter 99 Harmonized Tariff Schedule of the United States (HTSUS) duty
classifications on certain imports of member countries of the European Union, Japan,
and the United Kingdom.
ENTRY FILING
INSTRUCTIONS
This guidance
provides updated instructions for importers, brokers, and filers on submitting entries
to U.S. Customs and Border Protection (CBP) pertaining to certain imports of member
countries of the European Union, Japan, and the United Kingdom that are subject
to a replacement duty under headings 9903.02.20, 9903.02.73, 9903.94.41, 9903.94.43,
and 9903.94.32 of the HTSUS. See Federal Register notices 90 FR 37963, 90 FR 27851,
and 90 FR 44638. There are no changes to the entry filing instructions for reporting
duties under other Chapter 99 classifications for member countries of the European
Union, Japan, and the United Kingdom.
UPDATE
HTSUS 9903.02.20,
EU reciprocal tariff:
For a product of the European Union with a Column 1 rate less than 15 percent, the
total of the Column 1 and the reciprocal tariff is 15 percent.
·
Report the
15 percent duty amount on heading 9903.02.20.
·
Report 0 duty
amount and line value on the Chapter 1 to 97 HTSUS classification.
HTSUS 9903.02.73,
Japan reciprocal tariff:
For a product of Japan with a Column 1 rate less than 15 percent, the total of the
Column 1 and the reciprocal tariff is 15 percent.
·
Report the
15 percent duty amount on heading 9903.02.73.
·
Report 0 duty
amount and the line value on the Chapter 1 to 97 HTSUS classification.
HTSUS 9903.94.41,
Japan Section 232 automobile tariff:
For an automobile that is a product of Japan with a Column 1 duty rate less than
15 percent ad valorem, the total of the Column 1 and the Section 232 tariff is 15
percent.
·
Report the
15 percent duty amount on heading 9903.94.41.
·
Report 0 duty
amount and the line value on the Chapter 87 HTSUS classification.
HTSUS 9903.94.43,
Japan Section 232 automobile parts tariff:
For an automobile part that is a product of Japan with a Column 1 duty rate less
than 15 percent ad valorem, the total of the Column 1 and the Section 232 tariff
is 15 percent.
·
Report the
15 percent duty amount on heading 9903.94.43.
·
Report 0 duty
amount and the line value on the Chapter 1 to 97 HTSUS classification.
HTSUS 9903.94.32,
United Kingdom Section 232 automobile parts tariff:
For an automobile part that is a product of the United Kingdom with a Column 1 duty
rate less than 10 percent ad valorem, the total of the Column 1 and the Section
232 tariff is 10 percent.
·
Report the
10 percent duty amount on heading 9903.94.32.
·
Report 0 duty
amount and the line value on the Chapter 1 to 97 HTSUS classification.
EXCEPTION
FOR DRAWBACK:
If importers
plan to file a drawback claim for the Column 1 tariff for an automobile that is
a product of Japan, or an automobile part that is product of Japan or the United
Kingdom, and subject to HTSUS classifications 9903.94.41, 9903.94.43, or 9903.94.32
with combined duty rates, the Section 232 duties are not eligible for drawback.
Report the duties as follow
For a line
with HTSUS 9903.94.41 or 9903.94.43, report the Column 1 duty amount and the line
value on the Chapter 1 to 97 classification, and report the duty amount based on
the difference between 15 percent and the Column 1 tariff on the Chapter 99 HTSUS.
For a line
with HTSUS 9903.94.41 or 9903.94.43, report the Column 1 duty amount and the line
value on the Chapter 1 to 97 classification, and report the duty amount based on
the difference between 15 percent and the Column 1 tariff on the Chapter 99 HTSUS.
Example:
For an automobile that is a product of Japan, classified under HTSUS 8703.22.01,
the column one tariff rate is 2.5 percent. The combined total column one and Section
232 duty rate under HTS 9903.94.41 is 15 percent.
On HTSUS 8703.22.01,
report the duty amount based on the 2.5 percent rate.
On HTSUS 9903.94.41,
report the duty amount based on the 12.5 percent tariff rate (15 percent – 2.5 percent).
On the drawback
claim, claim only the column one 2.5 percent duty amount. The Section 232 duty is
not eligible for drawback.
POST SUMMARY
CORRECTION:
Importers
who may have incorrectly reported the total duty amounts under the entry summary
lines with headings 9903.02.20, 9903.02.73, 9903.94.41, 9903.94.43, and 9903.94.32
of the HTSUS should file a post summary correction to update their entry summary
information.