Reciprocal
Tariff Updates Effective August 7, 2025
·
August
7, 2025 at 12:01 a.m. EDT
(Applicable to imports entered for consumption or withdrawn from warehouse after
this time)
·
Applies
to goods from countries listed
in Annex I of the EO.
·
Subject
to HTSUS codes 9903.02.02 to
9903.02.71.
·
China (including
Hong Kong and Macau): Still
subject to 10% tariff
under 9903.01.25
(unchanged by this EO).
·
If Column
1/General duty ≥ 15%:
➤ No reciprocal
tariff (file under 9903.02.19)
·
If Column
1/General duty < 15%:
➤ Duty adjusted
so that total (Column 1 + reciprocal) = 15% (file under 9903.02.20)
|
Code |
Exempted
Goods/Notes |
|
9903.01.25 |
In-transit
articles (shipped before Aug 7 and entered by Oct 5) – 10% duty applies |
|
9903.01.26 |
Goods
from Canada
(including USMCA-covered items) |
|
9903.01.27 |
Goods
from Mexico
(including USMCA-covered items) |
|
9903.01.29 |
Goods
from Belarus, Cuba, North
Korea, and Russia |
|
9903.01.30 |
Humanitarian
donations (food, medicine, etc.) |
|
9903.01.31 |
Informational
materials (books, art, CDs, etc.) |
|
9903.01.32 |
Specific
HTSUS items clarified in EO 14257 & Apr 11 Memo |
|
9903.01.33 |
Items
under Section 232
(iron/steel, aluminum, vehicles, copper) |
|
9903.01.34 |
Goods
with ≥20% U.S. origin
content – only non-U.S. content taxed |
·
Additional
duties do not apply
to most Chapter 98
entries.
·
Duties
DO apply to:
o Subchapter XIX (9819): AGOA
o Subchapter XX (9820): Caribbean Trade Partnership
o Subchapter XXII (9822): Various FTAs
o 9802.00.80, .40, .50, .60
·
TIB (9813)
entries: Must report
IEEPA HTSUS, but no duties collected (bonding applies)
·
If goods
are transshipped to evade duties, a 40% penalty applies (HTSUS
9903.02.01), in addition to:
o Existing tariffs
o Fines, penalties, fees, and charges
1. Chapter 98 number (if any)
2. Chapter 99 – Additional Duties, in this order:
o Section 301
o IEEPA Fentanyl
o IEEPA Reciprocal
o Section 232/201 duties
o Section 232/201 quotas
3. Chapter 99 – Replacement or Quota Provisions
4. Chapter 1–97 – Commodity classification (Value reported here)
·
Goods with
≥20% U.S. value:
o Split into two lines: one for U.S. content (no reciprocal tariff),
one for foreign content (tariff applied).
o Proper HTSUS codes must be used on both lines.
The purpose
of this message is to update guidance on the additional duties due on imported merchandise,
pursuant to the International Emergency Economic Powers Act (IEEPA), as set forth
in the Executive Order (EO) 14257, as amended.
The July 31, 2025, EO, “Further Modifying the Reciprocal Tariff Rates” amends
EO 14257 as follows.
GUIDANCE
APPLICATION
OF ADDITIONAL DUTY RATES
Imported goods
of the countries identified in Annex I to the EO, 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. EDT on August 7, 2025, are subject
to the Harmonized Tariff Schedule of the United States (HTSUS) classifications 9903.02.02
– 9903.02.71 and associated reciprocal tariffs, as added to the HTSUS by Annex II
of the EO.
The reciprocal
tariff for goods of the European Union is dependent on the Column 1/General duty
rate applicable to the goods. For a good
of the European Union with a Column 1 duty rate greater than or equal to
15 percent, the reciprocal tariff is zero and the entry must be filed under heading
9903.02.19. For a good of the European Union
with a Column 1/General duty rate less than 15 percent, the sum of the Column 1/General
duty rate and the reciprocal tariff shall be 15 percent and the entry must be filed
under heading 9903.02.20.
The July 31,
2025, EO, “Further Modifying the Reciprocal Tariff Rates” does not alter or affect EO 14298, “Modifying Reciprocal
Tariff Rates to Reflect Discussion With the People’s Republic of China.” Goods of
China, including Hong Kong and Macau, continue to be subject to the 10% reciprocal
tariff under heading 9903.01.25.
EXEMPTIONS
The following
HTSUS classifications apply to products that are exempted from the additional ad
valorem duties imposed pursuant to the July 31, 2025, EO, “Further Modifying the Reciprocal Tariff Rates.”
In-Transit: Articles the
product of any country 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. EDT on August 7, 2025, AND (2) are entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on August 7,
2025, and before 12:01 a.m. EDT on October 5, 2025, are subject to the 10% ad valorem
reciprocal tariff and should be filed under heading 9903.01.25.
9903.01.26: Articles the
product of Canada, including those products of Canada entered free of duty as under
the United States-Mexico-Canada Agreement, including any treatment set forth in
subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS. Articles properly classified in 9903.01.10 through
9903.01.15 should declare a secondary classification under 9903.01.26 to be exempted
from the reciprocal tariff.
9903.01.27: Articles the
product of Mexico, including those products of Mexico entered free of duty as under
the United States-Mexico-Canada Agreement, including any treatment set forth in
subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS. Articles properly classified in 9903.01.01 through
9903.01.05 should declare a secondary classification under 9903.01.27 in order to
be exempted from the reciprocal tariff.
9903.01.29: Articles the
product of any Column 2 rate country identified in general note 3(b); Belarus, Cuba,
North Korea and Russia.
9903.01.30: Articles that
are donations, by persons subject to the jurisdiction of the United States, of articles,
such as food, clothing, and medicine, intended to be used to relieve human suffering,
provided that the President has not made the determination for an exception from
this exemption as provided in subdivision (v)(ii) of note 2 to subchapter III of
chapter 99 of the HTSUS.
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 headings and subheadings enumerated in subdivision
(v)(iii) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS, as identified
in Annex II and added
to the HTSUS by Annex III of EO 14257, and as further clarified by the April 11,
2025 Presidential Memorandum, “Clarification of Exceptions Under Executive Order 14257
of April 2, 2025, as amended.” The only
merchandise that is eligible for this exception is that which is properly classified
in the HTSUS headings and subheadings listed subdivision (v)(iii) of U.S. note 2
to subchapter III of chapter 99 of the HTSUS, as added by Annex II of EO 14257 and
clarified by the linked Presidential Memorandum.
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, semi-finished copper and intensive copper derivative products, of
any country, subject to Section 232 actions, that are properly classified in the
HTSUS headings identified subdivision (v)(vi) through (v)(xi) of U.S. note 2 to
subchapter III of chapter 99 of the HTSUS, as added to the HTSUS by Annex III of
EO 14257.
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.
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
U.S. Customs and Border Protection (CBP) regulations, and whenever CBP agrees that
entry under such a provision is appropriate, except for the following instances.
The additional
duties imposed by IEEPA Reciprocal tariffs apply to goods for which entry is properly
claimed under Subchapter XIX, 9819, for Africa Growth and Opportunity Act (AGOA),
Subchapter XX, 9820, for United States-Caribbean Basin Trade Partnership Act, and
Subchapter XXII, 9822, for various other Free Trade Agreements. These additional duties also apply to goods for
which entry is properly claimed under subheading 9802.00.80, as well as subheadings
9802.00.40, 9802.00.50, and 9802.00.60.
Goods for
which entry is properly claimed under Subchapter XIII, 9813, for Temporary Importation
Under Bond (TIB), will need to report the dutiable IEEPA Reciprocal HTSUS Chapter
99 number, along with the appropriate 9813 HTSUS number and 1-97 HTSUS number. No payment of the IEEPA duties will be required,
as no duties will be assessed for compliant TIB filings. Reporting the IEEPA Chapter 99 number will ensure
proper bonding, should the goods not meet the requirements of 9813, HTSUS.
TRANSSHIPMENT
Goods determined
by CBP to have been transshipped to evade applicable IEEPA
Reciprocal duties are subject to an additional ad valorem duty of 40 percent. CBP will direct a correction of the entry and/or
entry summary to be filed, replacing the IEEPA Reciprocal HTSUS number with heading
9903.02.01 or take action upon liquidation to collect the
40% applicable duties. The 40% duties are in addition to any other applicable or
appropriate fine or penalty, and any other duties, fees, taxes, extractions, or
charges applicable to goods of the country of origin.
HTSUS REPORTING
SEQUENCE
For entry
summary lines that include multiple HTSUS numbers, CBP requires that the duty be
appropriately associated to the correct HTSUS. For example, if the entry is subject
to heading 9903.01.25, then the 10% percent duty must be associated to heading 9903.01.25
within the entry summary line when transmitting to the Automated Commercial Environment
(ACE) and when a printed 7501 is produced. The 10% duty must not be combined with
the duty reported on a different HTSUS within the entry summary line. Further, duties across several required HTSUS
numbers on a given entry summary line must not be combined and cannot be reported
on only one HTSUS within the entry summary line.
For articles
that have a U.S. content of at least 20% and are subject to heading 9903.01.34,
the article must be broken up onto two entry summary lines to accurately report
and pay the applicable rate of duty. The
reciprocal tariff additional duty is to be reported based on the non-U.S. content. The first line will include the U.S. content
while the second line will include the non-U.S. content. Each line should be reported
in accordance with the instructions below.
For entry
summary lines including multiple HTSUS numbers, the following sequence must be followed.
1. Chapter
98 number (if applicable)
2. Chapter
99 number(s) for additional duties (if applicable)
3. For trade
remedies, if applicable
·
first report
the Chapter 99 number for Section 301,
·
followed by
the Chapter 99 number for IEEPA Fentanyl,
·
followed by
the Chapter 99 number for IEEPA Reciprocal,
·
followed by
the Chapter 99 number for Section 232 or 201 duties,
·
followed by
the Chapter 99 number for Section 201 or 232 quota
4. Chapter
99 number(s) for REPLACEMENT duty or other use, e.g., MTB or other provisions (if
applicable)
5. Chapter
99 number for other quota (not covered by #3) (if applicable)
6. Chapter
1 to 97 number for the commodity tariff
The entered
value of the commodity covered by the entry summary line should be reported on the
Chapter 1-97 number, except if Chapter 98 reporting provisions require the entered
value to be reported differently.
Refer back
to CSMS # 64649265 - GUIDANCE – Reciprocal Tariffs, April 5, 2025 Effective Date
and CSMS # 64680374 - GUIDANCE – Reciprocal Tariffs, April 5 and April 9, 2025,
Effective Dates for further information.