CBP's Reciprocal Tariffs Guidance Outlines Exemptions
CBP has provided updated guidance on reciprocal tariffs that includes additional information on what goods are exempt, according to an Aug. 4 cargo systems message.
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The guidance reiterates that imported goods of countries identified in Annex I of the July 31 executive order on reciprocal tariffs (see 2507310081) will be subject to Harmonized Tariff Schedule of the U.S. classifications 9903.02.02 – 9903.02.71 on Aug. 7 starting at 12:01 a.m. EDT.
Products 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mode of transport prior to entry into the U.S. before 12:01 a.m. EDT on Aug. 7, AND (2) are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on Aug. 7 and before 12:01 a.m. EDT on Oct. 5 are subject to the 10% reciprocal tariff previously in effect and should be filed under heading 9903.01.25, CBP said.
Meanwhile, for goods that CBP determines have been transshipped to evade IEEPA reciprocal tariffs, CBP will direct a correction of the entry and/or entry summary to be filed, replacing the IEEPA reciprocal HTSUS number with subheading 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 (except for the regular reciprocal tariff rate).
The Aug. 4 CSMS message also provided guidance on the reporting sequence for HTSUS numbers.
For entry summary lines that include multiple HTSUS numbers, CBP requires that the duty be appropriately associated with 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," CBP said.
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 into two entry summary lines to accurately report and pay the applicable rate of duty, CBP said. 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.