Cargo Systems Messaging Service

CSMS # 66319804 - GUIDANCE: Updated Entry Filing Guidance on Replacement Duties

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.

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

Related Message Number(s): 65475725, 65829726, 66242844