Harmonized System Update (HSU) – Import Duties on Auto Parts

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Background – On March 26, the President issued Proclamation 10908, which adjusts the importation of automobiles and automobile parts into the United States. This proclamation imposes a 25 percent ad valorem tariff on parts of passenger vehicles (including sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks from all countries. This action is taken under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), and will be effective starting May 3, 2025 at 12:01am ET.

Customs and Border Protection (CBP) has provided guidance on the 25 percent duty on imports of certain automobile parts from all countries with Harmonized System Update 2517, issued on April 29, 2025. This update includes the following:

  • Section 232 Auto parts updates: HTS 9903.94.05 and 9903.94.06 and Partner Government Agency updates. For additional information on the Section 232 Auto Part Updates, please refer to FRN 90 FR 14705.
  • In support of the PGA Message Set, Partner Government Agency (PGA), APHIS has performed a review of their HTS flagging and has removed 4 flags, made 17 additions, and changed 29 flags from AQ1 to AQX (warning). These updates will be reflected on the APHIS ACE website’s HTS Master Correlation Table.

The 25 percent tariff will take effect with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on May 3.

Additional Details: 

Foreign Trade Zone – CBP stated that any auto parts, except those eligible for admission to a foreign trade zone under “domestic status” as defined in 19 CFR 146.43, and admitted into a U.S. foreign trade zone on or after 12:01 a.m. ET on May 3, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41. These articles will be subject to the duties imposed by Presidential Proclamation 10908 and the applicable HTSUS subheading rates of duty in effect at the time of admission into the U.S. foreign trade zone, upon entry for consumption.

Drawback – No drawback is available with respect to the additional duties imposed pursuant to the Presidential Proclamation 10908, as implemented in the FRN 90 FR 14705.

Special Tariff Treatment – The duty provided in heading 9903.94.05 is in addition to any special rate of duty under a free trade agreement or preference program listed in general note 3(c)(i) to the tariff schedule, except as provided for in subdivision (h) of U.S. note 33 to subchapter III of chapter 99 of the HTSUS.

Chapter 98 Provision – Goods for which entry is claimed under a provision of chapter 98, and which are subject to the additional duties prescribed herein shall be eligible for and subject to the terms of such provision and applicable CBP regulations, except that duties under subheading 9802.00.60 shall be assessed based upon the full value of the imported article.

No claim for entry or for any duty exemption or reduction shall be allowed for the automobile parts in subdivision (g) of this note under a provision of chapter 99 that may set forth a lower rate of duty or provide duty-free treatment, taking into account information supplied by CBP, but any additional duty prescribed in any provision of this subchapter or subchapter IV of chapter 99 shall be imposed in addition to the duty in heading 9903.94.05.

All antidumping, countervailing, or other duties and charges applicable to such goods shall continue to be imposed in addition to the duty in heading 9903.94.05.

For more information:

The information provided herein represents our current position on the subject matter. However, it is the responsibility of the importers to ensure compliance with all applicable laws and regulations. This information should not be relied upon as legal advice or as a substitute for professional consultation. We disclaim any liability for actions taken based on the information provided.
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