The United States has
issued updated tariff implementation guidance following the Strategic Trade and Investment Deal with
South Korea, announced earlier in 2025. A Federal Register Notice published on
December 4, 2025 provides detailed tariff changes affecting
imports from South Korea under the HTSUS,
including modifications under the International
Emergency Economic Powers Act (IEEPA) and Section 232 of the Trade Expansion Act of 1962.
The updates are now
active in the Automated
Commercial Environment (ACE), and importers may begin filing
adjustments.
The changes modify
duties set under six earlier U.S. presidential actions, including measures
relating to:
·
Reciprocal
tariff program
·
Automobiles
and auto parts
·
Steel
and aluminum
·
Copper
·
Timber
and derivatives
Importers
must consult HTSUS updates for product-specific eligibility and rates.
·
For
most products, Section 232
and reciprocal tariff rates are assessed based on the relevant Column 1
(General or Special) duty rate.
·
When
claiming KORUS FTA
benefits, the importer must include special program indicator “KR”.
For goods assessed on a
specific rate (e.g., cents/kg), an ad
valorem equivalent must be calculated using the ratio of duty
amount to customs value.
Duty
structure now aligns to a 15%
ceiling rule:
|
Product Type |
Column 1 ≥ 15% |
Column 1 < 15% |
|
Automobiles |
0% additional duty
(HTS: 9903.94.60) |
Section 232 makes
total duty = 15% (HTS: 9903.94.61) |
|
Auto Parts |
0% additional duty
(HTS: 9903.94.62) |
Total duty = 15%
(HTS: 9903.94.63) |
Special certification
procedures apply to self-certified
parts used domestically for production or repair. Different
headings (9903.94.64 / 9903.94.65) apply to ensure eligibility.
Drawback
remains allowed for certain parts classifications.
Select classifications
including kitchen cabinets
and upholstered furniture will now incur a combined 15% duty under
heading 9903.76.23.
Drawback
eligibility continues.
Effective November 14,
2025, additional reciprocal and Section 232 tariffs are removed for qualifying
civil aircraft and parts. These products must now be filed under 9903.02.81.
Beginning
November 14, 2025:
|
Column
1 Duty |
Reciprocal
Tariff Outcome |
|
≥
15% |
No
additional tariff (HTS: 9903.02.79) |
|
<
15% |
Duty
increased to 15% total (HTS: 9903.02.80) |
Drawback
eligibility remains.
Products already
covered under Section 232 tariff schedules continue to be exempt from
reciprocal tariffs under heading 9903.01.33.
·
Unliquidated
entries: Post
Summary Correction (PSC) may be filed.
·
Liquidated
entries:
Refund may be pursued via protest within 180
days.
CBP outlines strict
sequencing rules for multiple HTSUS entries, prioritizing applicable Chapter 99
classifications before core HTS codes.
Additional
guidance will be issued through CBP
messaging (CSMS).
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:
1.
entries of semi-finished copper products and copper-intensive
derivative products under heading 9903.78.01
2.
entries of aluminum products
under heading 9903.85.02 and 9903.85.12
3.
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
4.
entries of iron or steel products under headings 9903.81.87,
9903.81.88, 9903.81.94 and 9903.81.95;
5.
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;
6.
entries of articles the product of Canada under heading
9903.01.10;
7.
entries of articles the product of Mexico under heading
9903.01.01; and
8.
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.
1.
Chapter 98 classification (if applicable)
2.
Chapter 99 classification(s) for additional duties (if
applicable)
3.
For trade remedies, if applicable
o
First report the Chapter 99 classification for Section
301,
o
Followed by the Chapter 99 classification for IEEPA
Fentanyl,
o
Followed by the Chapter 99 classification for IEEPA
Reciprocal,
o
Followed by the Chapter 99 classification for Section
232 or 201 duties,
o
Followed by the Chapter 99 classification for Section
201 or 232 quota.
4.
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.
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.