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Mar 26, 2025

Significant Tariff Increase on Imported Vehicles Effective April 3, 2025


UPDATE 4/4/2025:



Talk about something completely in left field, exempting 25 year old cars. Now the issue is figuring out which if any tariff apply.
Is it 0%, 2.5%, 10%, 12.5%, 24%, or 26.5%. When we find out we will relay it

https://content.govdelivery.com/accounts/USDHSCBP/bulletins/3da18a1


The purpose of this message is to provide guidance on the 25 percent duty on imports of passenger vehicles and light trucks from all countries effective 12:01 Eastern Daylight Time on April 3, 2025.

BACKGROUND
On March 26, 2025, the President issued Proclamation 10908 on Adjusting Imports of Automobiles and Automobile Parts into the United States, imposing a 25 percent ad valorem tariffs on certain imports of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks from all countries, under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862) (Section 232), effective April 3, 2025.  See Presidential Proclamation 10908 and annex published in the Federal Register on April 3, 2025.

ENTRY FILING INSTRUCTIONS
This guidance provides instructions for importers, brokers, and filers on submitting entries to U.S. Customs and Border Protection (CBP) pertaining to tariffs on passenger vehicles and light trucks from all countries that are provided for in headings 9903.94.01, 9903.94.02, 9903.94.03 and 9903.94.04 listed in subdivisions (a), (b), (c), (d), and (e) of U.S. note 33 to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS).

The 25 percent tariff will take effect with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time on April 3, 2025.  See Presidential Proclamation 10908 and annex published in the Federal Register on April 3, 2025.

The Section 232 automobile measures apply to all imported products classifiable in the provisions of the HTSUS listed here, as described under headings 9903.94.01, 9903.94.02, 9903.94.03 and 9903.94.04:

8703.22.01                        8703.23.01                       8703.24.01 
8703.31.01                        8703.32.01                       8703.33.01 
8703.40.00                        8703.50.00                       8703.60.00 
8703.70.00                        8703.80.00                       8703.90.01 
8704.21.01                        8704.31.01                       8704.41.00
8704.51.00                        8704.60.00

9903.94.01:  Applies to imports of passenger vehicles and light trucks from all countries except as provided for in headings 9903.94.02, 9903.94.03, and 9903.94.04.  

25% additional ad valorem rate of duty

9903.94.02:  Applies to imports classifiable under the Chapter 87 HTSUS classifications listed above,

1) that are not passenger vehicles and light trucks; or
2) the U.S. content of passenger vehicles and light trucks that have received approval from the Secretary of Commerce as noted under HTSUS 9903.94.03.

0% additional ad valorem rate of duty

Contact the U.S. Commerce Department for details on the process to request such approval from the Secretary of Commerce to apply the 25% ad valorem rates of duty exclusively to the value of the non-U.S. content of the passenger vehicles and light trucks.

DO NOT REPORT ANY DUTIES BASED ON U.S. CONTENT UNDER THIS HTSUS CLASSIFICATION UNTIL FURTHER GUIDANCE IS PROVIDED.

9903.94.03:  Applies to the non-U.S. content of passenger vehicles and light trucks eligible for special tariff treatment under the United States-Mexico-Canada Agreement (USMCA), upon approval from the Secretary of Commerce to apply the 25% ad valorem rates of duty exclusively to the value of the non-U.S. content of the automobile.

25% additional ad valorem rate of duty

Contact the U.S. Commerce Department for details on the process to receive approval from the Secretary of Commerce.

DO NOT REPORT ANY DUTIES BASED ON NON-U.S. CONTENT UNDER THIS HTSUS CLASSIFICATION UNTIL FURTHER GUIDANCE IS PROVIDED

9903.94.04:  Applies to all entries of passenger vehicles and light trucks from all countries classifiable in the headings or subheadings listed above that were manufactured in a year at least 25 years prior to the year of the date of entry.

0% additional ad valorem rate of duty

Any importer entering the passenger vehicle or light truck covered shall provide any information that may be required, and in such form, as is deemed necessary by CBP in order to permit the administration of this heading. 

FOREIGN TRADE ZONE
Any passenger vehicles or light trucks, except those that are eligible for admission to a foreign trade zone under “domestic status” as defined in 19 CFR 146.43 and are admitted into a United States foreign trade zone on or after 12:01 a.m. daylight standard time on April 3, 2025, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41.  Such articles will be subject, upon entry for consumption, to the duties imposed by this order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission into the United States foreign trade zone.

DRAWBACK
No drawback is available with respect to the additional duties imposed pursuant to the Executive Order, as implemented in the Federal Register Notice.

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 passenger vehicles or light trucks that are subject to the additional duties prescribed herein 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 headings 9903.94.01 and 9903.94.03. 

All antidumping, countervailing, or other duties and charges applicable to such goods shall continue to be imposed in addition to the duty in headings 9903.94.01 and 9903.94.03.

Reminder:  Importers, brokers, and/or filers should refer to CSMS # 64018403 (Updated Entry Summary Order of Reporting For Multiple Harmonized Tariff System (HTSUS) in the Automated Commercial Environment (ACE) for guidance when filing an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise.

Questions from the importing community concerning ACE entry rejections involving automobile filings should be referred to their CBP Client Representative.

For questions regarding our trade Remedy programs, please visit our cbp.gov webpage at https://www.cbp.gov/trade/programs-administration/trade-remedies or contact the Trade Remedy Branch at TradeRemedy@cbp.dhs.gov.

If you encounter any errors in filing an entry summary, contact your CBP client representative or the ACE Help Desk.

Related CSMS messages: # 64348288 and # 64384496


Significant Tariff Increase on Imported Vehicles Effective April 2, 2025

Important Notice Regarding Vehicle Imports to the United States

New government regulations will significantly increase tariffs on vehicles not manufactured within the United States, effective April 2, 2025. This change impacts both new and used passenger vehicles (classified under HS code 8703, including cars, station wagons, and racing cars).

Currently, these vehicles are subject to a tariff of 2.5%. However, starting April 2, 2025, any passenger vehicles arriving in the U.S. will be subject to a new tariff rate of 27.5%. This represents a substantial increase of 25% on the value of the vehicle.

This tariff adds an additional 25% tariff to the 25% tariff that has been in place for trucks since 1964, bringing light trucks to 50%.

Impact on Consumers:

As nearly half of all vehicles sold in the United States are imported, this tariff increase is expected to significantly raise prices for consumers on a wide range of vehicles, including those from foreign manufacturers and even American brands that assemble their automobiles overseas.

Effective Date:

The additional 25% tariff will be applied to all finished cars and trucks shipped into the United States that arrive on or after April 2, 2025.

Current CBP Information (as of March 26, 2025):

Please note that the current U.S. Customs and Border Protection (CBP) information, as of today's date, reflects the existing tariff rates:

  • Autos: 2.5%

  • Trucks: 25%

  • Motorcycles: 2.4% or free

(Source: https://www.cbp.gov/trade/basic-import-export/importing-car)

Important Considerations:

  • This new tariff will significantly increase the cost of importing vehicles into the United States.

  • The increase applies to both new and used passenger vehicles arriving after the effective date.

  • Consumers should be aware of these changes when considering the purchase or import of vehicles from outside the United States.

This information is provided to keep our customers and the automotive community informed of these upcoming regulatory changes. Please stay tuned for further updates.


We strongly object to the Secretary of Commerce's opinion, as expressed in the February 17, 2019 report, that the importation of automobiles, including used vehicles, and certain automobile parts poses a threat to the national security of the United States. Applying such a broad and unsubstantiated claim to the import of used vehicles is particularly unwarranted and overlooks the unique dynamics of this segment of the automotive market.

The rationale for considering new vehicle imports a national security threat is already tenuous, but extending this logic to used vehicles stretches credulity even further. Used vehicle imports often cater to niche markets, providing affordable transportation options or offering access to unique and collectible models not originally sold in the United States. These imports do not represent a significant volume compared to new car sales and therefore pose a negligible, if any, impact on domestic automotive production capacity or innovation in a way that could be construed as a national security concern.

Furthermore, the used vehicle import market often involves individual enthusiasts and small businesses, rather than large-scale industrial operations that might conceivably impact national economic security in a substantial way. Imposing tariffs or restrictions on these imports based on a national security argument would disproportionately harm these individuals and small enterprises, limiting consumer choice and economic opportunity without any demonstrable benefit to national security.In the specific context of used vehicles, particularly those reaching the 25-year import eligibility mark, these are often vehicles of historical or cultural significance to enthusiasts. Classifying their importation as a national security threat is not only illogical but also disregards the passions and interests of the American public.

In the specific context of used vehicles, particularly those reaching the 25-year import eligibility mark, these are often vehicles of historical or cultural significance to enthusiasts. Classifying their importation as a national security threat is not only illogical but also disregards the passions and interests of the American public.

Therefore, we contend that the inclusion of used vehicles within the Secretary's opinion regarding a national security threat is unfounded and lacks a factual basis. Such a classification risks imposing unnecessary burdens on consumers and small businesses, hindering the enjoyment of automotive heritage, and failing to address any genuine national security concerns.


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1 comment:

fabulous71 said...

Very sad to see this happening. This will only discourage people from wanting to buy their used dream car. Glad I purchased mine from Top Rank back in 2022. Will be closely watching this play out.