Updated Implementation Guidance for U.S. Japan Agreement
In a CSMS message released late on Monday, September 15, CBP has released updated guidance on the implementation of the U.S. Japan trade agreement. This update contains tariff numbers and effective dates for the various modifications of duties that accompany the agreement.
Retroactive to 12:01 AM EDT on August 7, goods that are the products of Japan with a column 1 Most Favored Nation duty rate equal to or greater than 15% are to be entered under 9903.02.72 with 0% additional duty. Goods that are the products of Japan with a column 1 MFN duty rate less than 15% are to be entered under 9903.02.73 with a total combined 15% duty rate made up of the MFN duty rate plus additional reciprocal duty.
The updated guidance also details the reduction of Section 232 duties for automobiles and auto parts beginning at 12:01 AM EDT on September 16. Automobiles with a column 1 Most Favored Nation duty rate equal to or greater than 15% are to be entered under 9903.94.40 with 0% additional duty. Automobiles with a column 1 Most Favored Nation duty rate less than 15% are to be entered under 9903.94.41 with a total combined 15% duty rate made up of the MFN duty rate plus additional Section 232 duty. Auto parts with a column 1 Most Favored Nation duty rate equal to or greater than 15% are to be entered under 9903.94.42 with 0% additional duty. Auto parts with a column 1 Most Favored Nation duty rate less than 15% are to be entered under 9903.94.43 with a total combined 15% duty rate made up of the MFN duty rate plus additional Section 232 duty.
Also beginning at 12:01 AM EDT on September 16, Japanese civil aircraft, excluding unmanned aircraft, will be entered under 9903.96.02. This tariff exempts properly classified products from reciprocal tariffs as well as Section 232 tariffs on aluminum, steel, and copper. The list of applicable tariff numbers for this exemption can be found in subdivision (b) of U.S. note 35 to the subchapter in the HTSUS.
No changes have been made to the applicability of the 9903.01.33 reciprocal exemption for Japanese products subject to Section 232 and the stacking rules as per EO 14289 and Proclamation 10947 still apply. The HTS sequence for reporting multiple HTS numbers remains the same.
USMCA 6-Year Review
The six-year review of the United States-Mexico-Canada (USMCA) trade agreement will begin soon. U.S. Trade Representative (USTR) has announced the beginning of the public consultation process that is in advance of the review. The agreement expires in 2036 but calls for review every six years. The USTR has issued a federal register notice (FRN) as part of the public consultation process for anyone that would like to submit comments for the USTR to consider in advance of the USMCA 6-year review. The FRN can be found here.
UPU Working on a Solution to the Suspension of De Minimis
Since Trump suspended the duty-free treatment for small shipments under de minimis, several nations have suspended the movement of low valued shipments by mail to the United States. The Universal Postal Union (UPU), a United Nations special agency, has started deploying a solution to help postal operators resume service to the U.S.
The UPU has implemented a technical solution that can access a landed-cost calculator to give the amount due in the U.S. to a mail operator, which is the mail operator’s liability. Hopefully the UPU’s solution will soon be integrated as part of the Customs Declaration System with a gradual roll out to all mail carriers. There is a fact sheet on the program that can be found here.
CBP Updates FAQ for IEEPA CA/MX
On September 10, CBP updated the FAQ for the IEEPA tariffs on Canada and Mexico regarding the ability to obtain a refund for additional IEEPA duties paid through a USMCA 1520(d) claim.
Per the update, the answer is yes. An importer of record who can substantiate a valid claim for preferential treatment under USMCA may file a claim pursuant to 19 U.S.C. 1520(d) within one year of the date of importation. This claim may include IEEPA duties paid pursuant to Executive Order 14193, as amended, and 14194, as amended. Previously, CBP required the USMCA claim to be filed and then a Post Summary Correction (PSC) had to be filed after the1520(d) was filed. CBP has changed their position to eliminate double work for themselves and for the trade.
However, filing a USMCA 1520(d) claim for any goods eligible for preferential treatment that were entered for consumption or withdrawn from a warehouse for consumption between March 4 and March 6, 2025, is not permitted as the exception for USMCA goods was not retroactive until March 4 and did not begin until March 7.
For further details, please visit the FAQ page.