[Federal Register Volume 90, Number 177 (Tuesday, September 16, 2025)]
[Notices]
[Pages 44638-44643]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-17908]
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DEPARTMENT OF COMMERCE
International Trade Administration
[Docket No. 250912-0154; RTID 0625-XC057]
Implementing Certain Tariff-Related Elements of the United
States-Japan Agreement
AGENCY: International Trade Administration, U.S. Department of
Commerce.
ACTION: Notice.
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SUMMARY: On July 23, 2025, the President announced a framework
agreement between the United States and Japan (the Agreement), which
lays
[[Page 44639]]
the foundation for a new era of U.S.-Japan trade relations grounded in
principles of reciprocity and our shared national interests. On
September 4, 2025, the President issued Executive Order 14345,
Implementing the United States-Japan Agreement, finding that specified
tariff actions are consistent with the national interests of the United
States and are necessary and appropriate to address the national
emergency declared in Executive Order 14257, as amended, and to reduce
or eliminate the threats to national security found in certain
proclamations issued under Section 232 of the Trade Expansion Act of
1962. Executive Order 14345 also directed and authorized the Secretary
of Commerce (Secretary) to publish in the Federal Register changes to
the Harmonized Tariff Schedule of the United States (HTSUS) with
respect to general tariffs on Japanese goods (in consultation with the
United States Trade Representative, the Secretary of Homeland Security
acting through the Commissioner of U.S. Customs and Border Protection
(CBP), and the Chair of the United States International Trade
Commission (ITC)); products of Japan that fall under the World Trade
Organization Agreement on Trade in Civil Aircraft, except for unmanned
aircraft (in consultation with the Chair of the ITC and the
Commissioner of CBP); and products of Japan subject to duties under
Proclamation 10908 of March 26, 2025 (Adjusting Imports of Automobiles
and Automobile Parts Into the United States) (in consultation with the
Chair of the ITC and the Commissioner of CBP). This notice amends the
HTSUS to implement these provisions of the Agreement.
DATES: The changes in the Harmonized Tariff Schedule of the United
States are effective September 16, 2025 except as otherwise provided
for in this notice.
FOR FURTHER INFORMATION CONTACT: Emily Davis, Director for Public
Affairs, International Trade Administration, U.S. Department of
Commerce, 202-482-3809, [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
On July 23, 2025, the President announced an Agreement between the
United States and Japan (the Agreement), which lays the foundation for
a new era of U.S.-Japan trade relations grounded in principles of
reciprocity and our shared national interests (https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-secures-unprecedented-u-s-japan-strategic-trade-and-investment-agreement/). On September 4, 2025, the President signed Executive Order
14345, which states that the Agreement establishes a tariff framework
that levels the playing field for American producers and accounts for
American national security needs. 90 FR 43535 (Sept. 9, 2025). The
Agreement will reduce the U.S. trade deficit, boost the economy of the
United States, and address the consequences of the U.S. trade deficit,
including by strengthening the manufacturing and defense industrial
base of the United States. In addition to raising billions in revenue,
this new tariff framework under the Agreement, combined with expanded
U.S. exports and investment-driven production, will help reduce the
trade deficit with Japan and restore greater balance to the overall
U.S. trade position.
Under the Agreement, the United States will apply a baseline 15
percent ad valorem tariff on nearly all Japanese imports entering the
United States, alongside separate sector-specific treatment for
automobiles and automobile parts; aerospace products; generic
pharmaceuticals; and natural resources that are not naturally available
or produced in the United States.
In Executive Order 14345, the President found that the Agreement is
necessary and appropriate to address the national emergency declared in
Executive Order 14257 of April 2, 2025, Regulating Imports with a
Reciprocal Tariff to Rectify Trade Practices That Contribute to Large
and Persistent Trade Deficits, as amended, and to reduce or eliminate
the threats to national security found in Proclamation 9704 of March 8,
2018, Adjusting Imports of Aluminum Into the United States, as amended;
Proclamation 9705 of March 8, 2018, Adjusting Imports of Steel Into the
United States, as amended; Proclamation 9888 of May 17, 2019, Adjusting
Imports of Automobiles and Automobile Parts Into the United States, as
amended; and Proclamation 10962 of July 30, 2025, Adjusting Imports of
Copper Into the United States.
Executive Order 14345 directed the Secretary of Commerce
(Secretary), in consultation with the United States Trade
Representative; the Secretary of Homeland Security, acting through the
Commissioner of CBP; and the Chair of the ITC, to determine whether
modifications to the HTSUS are necessary or appropriate to effectuate
the order and authorized him to make modifications through notice in
the Federal Register. That order requires changes to the additional ad
valorem rate of duty applicable to products of Japan, which are to be
determined by a product's current ad valorem (or ad valorem equivalent)
rate of duty under column 1 of the HTSUS (Column 1 Duty Rate). For a
product of Japan with a Column 1 Duty Rate that is less than 15
percent, the sum of its Column 1 Duty Rate and the additional ad
valorem rate of duty is 15 percent. For a product of Japan with a
Column 1 Duty Rate that is at least 15 percent, the additional rate of
duty pursuant to Executive Order 14345 is zero. Per Executive Order
14345, treatment of specific or compound duty rates is identical to the
treatment provided to products of the European Union, as outlined in
Executive Order 14326 of July 31, 2025, Further Modifying the
Reciprocal Tariff Rates. The duties, which are set forth in Annex 1(a)
to this notice, apply in lieu of the additional ad valorem duties
previously imposed on products of Japan under Executive Order 14257, as
amended. These modifications apply to products of Japan entered for
consumption or withdrawn from warehouse for consumption on or after
12:01 a.m. eastern daylight time on August 7, 2025.
Executive Order 14345 also directed the Secretary, in consultation
with the Chair of the ITC and the Commissioner of CBP, to publish a
notice in the Federal Register modifying the HTSUS so that tariffs
applied under Executive Order 14257, as amended; Proclamation 9704, as
amended; Proclamation 9705, as amended; and Proclamation 10962 do not
apply to products of Japan that fall under the World Trade Organization
Agreement on Trade in Civil Aircraft, except for unmanned aircraft.
These modifications are set forth in Annex 1(b) to this notice and are
effective for goods entered for consumption, or withdrawn from
warehouse for consumption, on or after September 16, 2025.
Finally, Executive Order 14345 directed the Secretary, in
consultation with the Chair of the ITC and the Commissioner of CBP, to
publish a notice in the Federal Register amending the HTSUS to allow
for the additional ad valorem rate of duty applicable to an automobile
or automobile part that is a product of Japan and subject to duties
under Proclamation 10908 to be determined by the product's Column 1
Duty Rate. For a product of Japan with a Column 1 Duty Rate that is
less than 15 percent, the sum of its Column 1 Duty Rate and the
additional automobile or automobile part Proclamation 10908 ad valorem
rate of duty are 15 percent. For a product of Japan with a Column 1
Duty Rate that is at least 15 percent, the additional automobile or
automobile part Proclamation 10908 ad valorem rate of duty imposed is
zero. These modifications are set forth in Annex 1(c)
[[Page 44640]]
to this notice and are effective for goods entered for consumption, or
withdrawn from warehouse for consumption, on or after September 16,
2025.
Dated: September 12, 2025.
William Kimmitt,
Under Secretary for International Trade, United States Department of
Commerce.
Annex I
a. Effective with respect to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern time on August 7, 2025, subchapter III of chapter 99 of the
Harmonized Tariff Schedule of the United States (HTSUS) is modified
as follows:
1. Heading 9903.02.30 is hereby terminated.
2. U.S. note 2(v)(xv) to subchapter III of chapter 99 of the
Harmonized Tariff Schedule of the United States (HTSUS) is modified
by inserting the following in lieu thereof:
``As provided in headings 9903.02.19, 9903.02.20, 9903.02.72,
and 9903.02.73, for any good of the European Union or Japan subject
to a specific or compound rate of duty under column 1--General, the
ad valorem equivalent rate of duty of such good shall be determined
by dividing the amount of duty payable under column 1--General by
the customs value of the good. For example, if a good were subject
to a specific duty of 50 cents per kilogram, and one kilogram of the
good were entered with a customs value of $10, then the ad valorem
equivalent rate of duty would be obtained by dividing 50 cents by
$10, yielding 5 percent.''
3. New headings 9903.02.72 and 9903.02.73 are inserted in
numerical sequence, with the material in the new heading inserted in
the columns of the HTSUS labeled ``Heading/Subheading'', ``Article
Description'', ``Rates of Duty 1--General'', ``Rates of Duty 1--
Special'' and ``Rates of Duty 2'', respectively:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rates of duty
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Heading/subheading Article description 1
---------------------------------------------- 2
General Special
--------------------------------------------------------------------------------------------------------------------------------------------------------
``9903.02.72....................... Except for goods loaded onto a vessel at the The duty provided in The duty provided in No change.
port of loading and in transit on the final the applicable the applicable
mode of transit before 12:01 a.m. eastern subheading. subheading.
daylight time on August 7, 2025, and entered
for consumption or withdrawn from warehouse
for consumption before 12:01 a.m. eastern
daylight time on October 5, 2025, except for
products described in headings 9903.01.30-
9903.01.33, and except as provided for in
headings 9903.01.34, 9903.02.01, and
9903.96.02, articles the product of Japan,
with an ad valorem (or ad valorem equivalent)
rate of duty under column 1 equal to or
greater than 15 percent, as provided for in
subdivision (v) of U.S. note 2 to this
subchapter.
9903.02.73......................... Except for goods loaded onto a vessel at the 15%.................. 15%.................. No change''.
port of loading and in transit on the final
mode of transit before 12:01 a.m. eastern
daylight time on August 7, 2025, and entered
for consumption or withdrawn from warehouse
for consumption before 12:01 a.m. eastern
daylight time on October 5, 2025, except for
products described in headings 9903.01.30-
9903.01.33, and except as provided for in
headings 9903.01.34, 9903.02.01, and
9903.96.02, articles the product of Japan,
with an ad valorem (or ad valorem equivalent)
rate of duty under column 1 less than 15
percent, as provided for in subdivision (v)
of U.S. note 2 to this subchapter.
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b. Effective with respect to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern time on September 16, 2025, subchapter III of chapter 99 of
the HTSUS is modified as follows:
1. U.S. note 35 is modified by adding in the following
subdivision (b):
``As provided in heading 9903.96.02, the additional duties
imposed by heading 9903.02.72, 9903.02.73 9903.78.01, 9903.81.87,
9903.81.88, 9903.81.89, 9903.81.90, 9903.81.91, 9903.81.93,
9903.85.02, 9903.85.04, 9903.85.07, and 9903.85.08, shall not apply
to articles of civil aircraft (all aircraft other than military
aircraft and unmanned aircraft); their engines, parts, and
components; their other parts, components, and subassemblies; and
ground flight simulators and their parts and components of Japan,
that otherwise meet the criteria of General Note 6 of HTSUS, and
classifiable in the following provisions of the HTSUS, but
regardless of whether a product is entered under a provision for
which the rate of duty ``Free (C)'' appears in the ``Special''
subcolumn: 3917.21.00, 3917.22.00; 3917.23.00; 3917.29.00;
3917.31.00; 3917.33.00; 3917.39.00; 3917.40.00; 3926.90.45;
3926.90.94; 3926.90.96; 3926.90.99; 4008.29.20; 4009.12.00;
4009.22.00; 4009.32.00; 4009.42.00; 4011.30.00; 4012.13.00;
4012.20.10; 4016.10.00; 4016.93.50; 4016.99.35; 4016.99.60;
4017.00.00; 4504.90.00; 4823.90.10; 4823.90.20; 4823.90.31;
4823.90.40; 4823.90.50; 4823.90.60; 4823.90.67; 4823.90.70;
4823.90.80; 4823.90.86; 6812.80.90; 6812.99.10; 6812.99.20;
6812.99.90; 6813.20.00; 6813.81.00; 6813.89.00; 7007.21.11;
7304.31.30; 7304.31.60; 7304.39.00; 7304.41.30; 7304.41.60;
7304.49.00; 7304.51.10; 7304.51.50; 7304.59.10; 7304.59.20;
7304.59.60; 7304.59.80; 7304.90.10; 7304.90.30; 7304.90.50;
7304.90.70; 7306.30.10; 7306.30.30; 7306.30.50; 7306.40.10;
7306.40.50; 7306.50.10; 7306.50.30; 7306.50.50; 7306.61.10;
7306.61.30; 7306.61.50; 7306.61.70; 7306.69.10; 7306.69.30;
7306.69.50; 7306.69.70; 7312.10.05; 7312.10.10; 7312.10.20;
7312.10.30; 7312.10.50; 7312.10.60; 7312.10.70; 7312.10.80;
7312.10.90; 7312.90.00; 7322.90.00; 7324.10.00; 7324.90.00;
7326.20.00; 7413.00.90; 7608.10.00; 7608.20.00; 8108.90.60;
8302.10.60; 8302.10.90; 8302.20.00; 8302.42.30; 8302.42.60;
8302.49.40; 8302.49.60; 8302.49.80; 8302.60.30; 8307.10.30;
8307.90.30; 8407.10.00; 8408.90.90; 8409.10.00; 8411.11.40;
8411.11.80; 8411.12.40; 8411.12.80; 8411.21.40; 8411.21.80;
8411.22.40; 8411.22.80; 8411.81.40; 8411.82.40; 8411.91.10;
8411.91.90; 8411.99.10; 8411.99.90; 8412.10.00; 8412.21.00;
8412.29.40; 8412.29.80; 8412.31.00; 8412.39.00; 8412.80.10;
8412.80.90; 8412.90.90; 8413.19.00; 8413.20.00; 8413.30.10;
8413.30.90; 8413.50.00; 8413.60.00; 8413.70.10; 8413.70.20;
8413.81.00; 8413.91.10; 8413.91.20; 8413.91.90; 8414.10.00;
8414.20.00; 8414.30.40; 8414.30.80; 8414.51.30; 8414.51.90;
8414.59.30; 8414.59.65; 8414.80.05; 8414.80.16; 8414.80.20;
8414.80.90; 8414.90.10; 8414.90.30; 8414.90.41; 8414.90.91;
8415.10.60; 8415.10.90; 8415.81.01; 8415.82.01; 8415.83.00;
8415.90.40; 8415.90.80; 8418.10.00; 8418.30.00; 8418.40.00;
8418.61.01; 8418.69.01; 8419.50.10; 8419.50.50; 8419.81.50;
8419.81.90; 8419.90.10; 8419.90.20; 8419.90.30; 8419.90.50;
8419.90.85; 8421.19.00; 8421.21.00; 8421.23.00; 8421.29.00;
8421.31.00; 8421.32.00; 8421.39.01; 8424.10.00; 8425.11.00;
8425.19.00;
[[Page 44641]]
8425.31.01; 8425.39.01; 8425.42.00; 8425.49.00; 8426.99.00;
8428.10.00; 8428.20.00; 8428.33.00; 8428.39.00; 8428.90.03;
8443.31.00; 8443.32.10; 8443.32.50; 8471.41.01; 8471.49.00;
8471.50.01; 8471.60.10; 8471.60.20; 8471.60.70; 8471.60.80;
8471.60.90; 8471.70.10; 8471.70.20; 8471.70.30; 8471.70.40;
8471.70.50; 8471.70.60; 8471.70.90; 8479.89.10; 8479.89.20;
8479.89.65; 8479.89.70; 8479.89.95; 8479.90.41; 8479.90.45;
8479.90.55; 8479.90.65; 8479.90.75; 8479.90.85; 8479.90.95;
8483.10.10; 8483.10.30; 8483.10.50; 8483.30.40; 8483.30.80;
8483.40.10; 8483.40.30; 8483.40.50; 8483.40.70; 8483.40.80;
8483.40.90; 8483.50.40; 8483.50.60; 8483.50.90; 8483.60.40;
8483.60.80; 8483.90.10; 8483.90.20; 8483.90.30; 8483.90.50;
8483.90.80; 8484.10.00; 8484.90.00; 8501.20.50; 8501.20.60;
8501.31.50; 8501.31.60; 8501.31.81; 8501.32.20; 8501.32.55;
8501.32.61; 8501.33.20; 8501.33.30; 8501.33.61; 8501.34.61;
8501.40.50; 8501.40.60; 8501.51.50; 8501.51.60; 8501.52.40;
8501.52.80; 8501.53.40; 8501.53.60; 8501.61.01; 8501.62.01;
8501.63.01; 8501.71.00; 8501.72.10; 8501.72.20; 8501.72.30;
8501.72.90; 8501.80.10; 8501.80.20; 8501.80.30; 8502.11.00;
8502.12.00; 8502.13.00; 8502.20.00; 8502.31.00; 8502.39.00;
8502.40.00; 8504.10.00; 8504.31.20; 8504.31.40; 8504.31.60;
8504.32.00; 8504.33.00; 8504.40.40; 8504.40.60; 8504.40.70;
8504.40.85; 8504.40.95; 8504.50.40; 8504.50.80; 8507.10.00;
8507.20.80; 8507.30.80; 8507.50.00; 8507.60.00; 8507.80.82;
8507.90.40; 8507.90.80; 8511.10.00; 8511.20.00; 8511.30.00;
8511.40.00; 8511.50.00; 8511.80.20; 8511.80.40; 8511.80.60;
8514.20.40; 8516.80.40; 8516.80.80; 8517.13.00; 8517.14.00;
8517.61.00; 8517.62.00; 8517.69.00; 8517.71.00; 8518.10.40;
8518.10.80; 8518.21.00; 8518.22.00; 8518.29.40; 8518.29.80;
8518.30.10; 8518.30.20; 8518.40.10; 8518.40.20; 8518.50.00;
8519.81.10; 8519.81.20; 8519.81.25; 8519.81.30; 8519.81.41;
8519.89.10; 8519.89.20; 8519.89.30; 8521.10.30; 8521.10.60;
8521.10.90; 8522.90.25; 8522.90.36; 8522.90.45; 8522.90.58;
8522.90.65; 8522.90.80; 8526.10.00; 8526.91.00; 8526.92.10;
8526.92.50; 8528.42.00; 8528.52.00; 8528.62.00; 8529.10.21;
8529.10.40; 8529.10.91; 8529.90.04; 8529.90.05; 8529.90.06;
8529.90.09; 8529.90.13; 8529.90.16; 8529.90.19; 8529.90.21;
8529.90.24; 8529.90.29; 8529.90.33; 8529.90.36; 8529.90.39;
8529.90.43; 8529.90.46; 8529.90.49; 8529.90.55; 8529.90.63;
8529.90.68; 8529.90.73; 8529.90.77; 8529.90.78; 8529.90.81;
8529.90.83; 8529.90.87; 8529.90.88; 8529.90.89; 8529.90.93;
8529.90.95; 8529.90.97; 8529.90.98; 8531.10.00; 8531.20.00;
8531.80.15; 8531.80.90; 8536.70.00; 8539.10.00; 8539.51.00;
8543.70.42; 8543.70.45; 8543.70.60; 8543.70.80; 8543.70.91;
8543.70.95; 8543.90.12; 8543.90.15; 8543.90.35; 8543.90.65;
8543.90.68; 8543.90.85; 8543.90.88; 8544.30.00; 8801.00.00;
8802.11.01; 8802.12.01; 8802.20.01; 8802.30.01; 8802.40.01;
8805.29.00; 8807.10.00; 8807.20.00; 8807.30.00; 8807.90.90;
9001.90.40; 9001.90.50; 9001.90.60; 9001.90.80; 9001.90.90;
9002.90.20; 9002.90.40; 9002.90.70; 9002.90.85; 9002.90.95;
9014.10.10; 9014.10.60; 9014.10.70; 9014.10.90; 9014.20.20;
9014.20.40; 9014.20.60; 9014.20.80; 9014.90.10; 9014.90.20;
9014.90.40; 9014.90.60; 9020.00.40; 9020.00.60; 9025.11.20;
9025.11.40; 9025.19.40; 9025.19.80; 9025.80.10; 9025.80.15;
9025.80.20; 9025.80.35; 9025.80.40; 9025.80.50; 9025.90.06;
9026.10.20; 9026.10.40; 9026.10.60; 9026.20.40; 9026.20.80;
9026.80.20; 9026.80.40; 9026.80.60; 9026.90.20; 9026.90.40;
9026.90.60; 9029.10.80; 9029.20.40; 9029.90.80; 9030.10.00;
9030.20.05; 9030.20.10; 9030.31.00; 9030.32.00; 9030.33.34;
9030.33.38; 9030.39.01; 9030.40.00; 9030.84.00; 9030.89.01;
9030.90.25; 9030.90.46; 9030.90.66; 9030.90.68; 9030.90.84;
9030.90.89; 9031.80.40; 9031.80.80; 9031.90.21; 9031.90.45;
9031.90.54; 9031.90.59; 9031.90.70; 9031.90.91; 9032.10.00;
9032.20.00; 9032.81.00; 9032.89.20; 9032.89.40; 9032.89.60;
9032.90.21; 9032.90.41; 9032.90.61; 9033.00.90; 9104.00.05;
9104.00.10; 9104.00.20; 9104.00.25; 9104.00.30; 9104.00.40;
9104.00.45; 9104.00.50; 9104.00.60; 9109.10.50; 9109.10.60;
9109.90.20; 9401.10.40; 9401.10.80; 9403.20.00; 9403.70.40;
9403.70.80; 9405.11.40; 9405.11.60; 9405.11.80; 9405.19.40;
9405.19.60; 9405.19.80; 9405.61.20; 9405.61.40; 9405.61.60;
9405.69.20; 9405.69.40; 9405.69.60; 9405.92.00; 9405.99.20;
9405.99.40; 9620.00.50; 9620.00.60; 9802.00.40; 9802.00.50;
9802.00.60; 9802.00.80; 9818.00.05; 9818.00.07''
2. U.S. note 2(v) is modified by deleting ``and 9903.02.01-
9903.02.71'' in each place that it appears and inserting
``9903.02.01-9903.02.73'' in lieu thereof.
3. U.S. note 2(v)(i) is modified by:
i. Deleting ``Except as provided in headings 9903.01.26-
9903.01.33, in heading 9903.01.34, in heading 9903.96.01,'' and
inserting ``Except as provided in headings 9903.01.26-9903.01.33, in
heading 9903.01.34, in heading 9903.96.01 and 9903.96.02'' in lieu
thereof; and
ii. Deleting the last sentence in the first paragraph and
inserting ``Products that are eligible for special tariff treatment
under general note 3(c)(i) to the tariff schedule, or that are
eligible for temporary duty exemptions or reductions under
subchapter II to chapter 99, shall be subject to the additional ad
valorem rate of duty imposed by these headings except as provided in
9903.96.01 and 9903.96.02 with respect to the Agreement on Trade and
Civil Aircraft.''
4. U.S note 16(i) is modified by inserting ``Except as provided
in heading 9903.96.02'' to the beginning of the first sentence.
5. U.S. note 16(k) is modified by to inserting ``Except as
provided in heading 9903.96.02'' to the beginning of the first
sentence.
6. U.S. note 19(f) is modified by inserting ``Except as provided
in heading 9903.96.02'' to the beginning of the first sentence.
7. U.S. note 19(h) is modified by inserting ``Except as provided
in heading 9903.96.02'' to the beginning of the first sentence.
8. U.S. note 36(a) is modified by inserting ``Except as provided
in headings 9903.94.40-9903.94.43, and 9903.96.02'' to the beginning
of the first sentence.
9. New heading 9903.96.02 is inserted in numerical order, with
the material in the new heading inserted in the columns of the HTSUS
labeled ``Heading/Subheading'', ``Article Description'', ``Rates of
Duty 1--General'', ``Rates of Duty 1--Special'' and ``Rates of Duty
2'', respectively:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rates of duty
--------------------------------------------------------------------
Heading/subheading Article description 1
---------------------------------------------- 2
General Special
--------------------------------------------------------------------------------------------------------------------------------------------------------
``9903.96.02....................... Articles of civil aircraft (all aircraft other The duty provided in The duty provided in No change.
than military aircraft); their engines, the applicable the applicable
parts, and components; their other parts, subheading. subheading.
components, and subassemblies; and ground
flight simulators and their parts and
components of Japan, excluding unmanned
aircraft, classified in the subheadings
enumerated in subdivision (b) of U.S. note 35
to this subchapter.
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c. Effective with respect to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern time on September 16, 2025, subchapter III of chapter 99 of
the HTSUS is modified as follows:
1. U.S. note 33 is modified by adding the following subdivision
(k):
``(k) Except as provided for in headings 9903.94.02 and
9903.94.04, headings 9903.94.40, 9903.94.41 sets forth the ordinary
customs duty treatment for certain passenger
[[Page 44642]]
vehicles and light trucks classifiable in the provisions of the
HTSUS enumerated in subdivision (b) of this Note that are products
of Japan.
Any passenger vehicle or light truck, except those eligible for
admission under ``domestic status'' as defined in 19 CFR 146.43,
that is subject to the duty imposed by this subdivision and that is
admitted into a United States foreign trade zone on or after 12:01
a.m. eastern standard time on September 16, 2025, must be admitted
as ``privileged foreign status'' as defined in 19 CFR 146.41, and
will be subject upon entry for consumption to any ad valorem rates
of duty related to the classification under this HTSUS subheading.
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 U.S. Customs and Border Protection (``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 and light trucks provided for in this
subdivision (k) 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 headings
9903.94.40 and 9903.94.41. All antidumping, countervailing, or other
duties and charges applicable to such goods shall continue to be
imposed in addition to the duty in headings 9903.94.40 and
9903.94.41. Entries of passenger vehicles and light trucks described
in this subdivision (k) shall not be subject to: (1) the additional
duties imposed on entries of semi-finished copper products and
copper-intensive derivative products under heading 9903.78.01; (2)
the additional duties imposed on entries of products of aluminum
under heading 9903.85.02 and 9903.85.12; (3) the additional duties
imposed on entries of derivative aluminum products under headings
9903.85.04, 9903.85.07, 9903.85.08, 9903.85.13, 9903.85.14, and
9903.85.15; (4) the additional duties imposed on entries of iron or
steel products under headings 9903.81.87, 9903.81.88, 9903.81.94 and
9903.81.95; (5) the additional duties imposed on entries of
derivative iron or steel products under headings 9903.81.89,
9903.81.90, 9903.81.91, 9903.81.93, 9903.81.96, 9903.81.97,
9903.81.98 and 9903.81.99.
2. U.S. note 33 is modified by adding the following subdivision
(l):
``(l) Except as provided for in headings 9903.94.06, headings
9903.94.42, 9903.94.43 sets forth the ordinary customs duty
treatment for certain parts of passenger vehicles and light trucks
classifiable in the provisions of the HTSUS enumerated in
subdivision (g) of this Note that are products of Japan.
Any automotive part, except those eligible for admission under
``domestic status'' as defined in 19 CFR 146.43, that is subject to
the duty imposed by this subdivision and that is admitted into a
United States foreign trade zone on or after 12:01 a.m. eastern
standard time on September 16, 2025, must be admitted as
``privileged foreign status'' as defined in 19 CFR 146.41, and will
be subject upon entry for consumption to any ad valorem rates of
duty related to the classification under this HTSUS subheading.
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 U.S. Customs and Border Protection (``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 automotive parts provided for in this subdivision (l) 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 headings 9903.94.42 and
9903.94.43. All antidumping, countervailing, or other duties and
charges applicable to such goods shall continue to be imposed in
addition to the duty in headings 9903.94.42 and 9903.94.43. Entries
of automotive parts described in this subdivision (l) shall not be
subject to: (1) the additional duties imposed on entries of semi-
finished copper products and copper-intensive derivative products
under heading 9903.78.01; (2) the additional duties imposed on
entries of products of aluminum under heading 9903.85.02 and
9903.85.12; (3) the additional duties imposed on entries of
derivative aluminum products under headings 9903.85.04, 9903.85.07,
9903.85.08, 9903.85.13, 9903.85.14, and 9903.85.15; (4) the
additional duties imposed on entries of iron or steel products under
headings 9903.81.87, 9903.81.88, 9903.81.94 and 9903.81.95; (5) the
additional duties imposed on entries of derivative iron or steel
products under headings 9903.81.89, 9903.81.90, 9903.81.91,
9903.81.93, 9903.81.96, 9903.81.97, 9903.81.98 and 9903.81.99.
3. U.S. note 33 is modified by adding the following subdivision
(m):
``As provided in headings 9903.94.40-9903.94.43, for any good of
Japan subject to a specific or compound rate of duty under column
1--General, the ad valorem equivalent rate of duty of such good
shall be determined by dividing the amount of duty payable under
column 1--General by the customs value of the good. For example, if
a good were subject to a specific duty of 50 cents per kilogram, and
one kilogram of the good were entered with a customs value of $10,
then the ad valorem equivalent rate of duty would be obtained by
dividing 50 cents by $10, yielding 5 percent.''
4. U.S. note 33(a) is modified by:
i. Deleting ``Except as provided for in headings 9903.94.02,
9903.94.03, 9903.94.04, and 9903.94.31'' and inserting ``Except as
provided for in headings 9903.94.02, 9903.94.03, 9903.94.04,
9903.94.31, 9903.94.40, and 9903.94.41,'' in lieu thereof.
ii. Deleting ``Except as provided in heading 9903.94.31, no
claim for entry'', and inserting ``Except as provided in headings
9903.94.31, 9903.94.40 and 9903.94.41, no claim for entry'' in lieu
thereof.
5. U.S. note 33(b) is modified by inserting ``9903.94.40,
9903.94.41'' after ``9903.94.04,''.
6. U.S. note 33(f) is modified by:
i. Deleting ``Except as provided for in heading 9903.94.06 and
9903.94.32,'' and replacing with ``Except as provided for in heading
9903.94.06, 9903.94.32, 9903.94.42 and 9903.94.43,'' in lieu
thereof.
ii. Deleting ``Except as provided in heading 9903.94.32, no
claim for entry'' and inserting ``Except as provided in headings
9903.94.32, 9903.94.42 and 9903.94.43, no claim for entry'' in lieu
thereof.
7. U.S. note 33(g) is modified by inserting ``, 9903.94.42, and
9903.94.43'' after ``9903.94.05''.
8. Heading 9903.94.01 is modified by deleting the article
description and inserting ``Except for 9903.94.02, 9903.94.03,
9903.94.04, 9903.94.31, 9903.94.40 and 9903.94.41, effective with
respect to entries on or after April 3, 2025, passenger vehicles
(sedans, sport utility vehicles, crossover utility vehicles,
minivans, and cargo vans) and light trucks, as specified in note 33
to this subchapter, as provided for in subdivision (b) of U.S. note
33 to this subchapter''
9. Heading 9903.94.05 is modified by deleting the article
description and inserting ``Except for 9903.94.06, 9903.94.32,
9903.94.42 and 9903.94.43, effective with respect to entries on or
after May 3, 2025, automobile parts, as provided for in subdivision
(g) of U.S. note 33 to this subchapter''
10. New headings 9903.94.40, 9903.94.41, 9903.94.42 and
9903.94.43 are inserted in numerical sequence, with the material in
the new heading inserted in the columns of the HTSUS labeled
``Heading/Subheading'', ``Article Description'', ``Rates of Duty 1--
General'', ``Rates of Duty 1--Special'' and ``Rates of Duty 2'',
respectively:
[[Page 44643]]
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Rates of duty
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Heading/subheading Article description 1
---------------------------------------------- 2
General Special
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``9903.94.40....................... Passenger vehicles and light trucks that are The duty provided in The duty provided in No change.
products of Japan as provided for in the applicable the applicable
subdivision (k) of U.S. note 33 to this subheading. subheading.
subchapter, with an ad valorem (or ad valorem
equivalent) rate of duty under column 1 equal
to or greater than 15 percent as provided for
in subdivision (m) of U.S. note 33 to this
subchapter.
9903.94.41......................... Passenger vehicles and light trucks that are 15%.................. 15%.................. No change.
products of Japan provided for in subdivision
(k) of U.S. note 33 to this subchapter, with
an ad valorem (or ad valorem equivalent) rate
of duty under column 1 less than 15 percent
as provided for in subdivision (m) of U.S.
note 33 to this subchapter.
9903.94.42......................... Parts of passenger vehicles and light trucks The duty provided in The duty provided in No change.
that are products of Japan as provided for the applicable the applicable
subdivision (l) of U.S. note 33 to this subheading. subheading.
subchapter, with an ad valorem (or ad valorem
equivalent) rate of duty under column 1 equal
to or greater than 15 percent as provided for
in subdivision (m) of U.S. note 33 to this
subchapter.
9903.94.43......................... Parts of passenger vehicles and light trucks 15%.................. 15%.................. No change.''
that are products of Japan as provided for in
subdivision (l) of U.S. note 33 to this
subchapter, with an ad valorem (or ad valorem
equivalent) rate of duty under column 1 less
than 15 percent as provided for in
subdivision (m) of U.S. note 33 to this
subchapter.
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[FR Doc. 2025-17908 Filed 9-15-25; 8:45 am]
BILLING CODE 3510-DS-P