CBP Issues Guidance for US–UK Economic Prosperity Deal

The CBP guidance outlines entry filing procedures, tariff-rate quotas, and relevant Harmonized Tariff Schedule of the United States (HTSUS) codes.

U.S. Customs and Border Protection (CBP) has issued official guidance on implementing tariff provisions established under the U.S.–U.K. Economic Prosperity Deal.

The guidance outlines revised duty treatment for certain imports from the United Kingdom, including vehicles, automotive parts, and civil aircraft products.

The U.S.–U.K. Economic Prosperity Deal was formalized through Executive Order (EO) 14309, which was issued on June 16, 2025, and further detailed in a Federal Register notice published on June 30, 2025.

The agreement followed discussions initiated at the 2025 G7 summit, where the two countries outlined their intent to strengthen economic ties.

While the initial implementation focuses on the automotive and civil aviation sectors, EO 14309 also authorizes the Secretary of Commerce and U.S. Trade Representative (USTR) to coordinate updates to steel and aluminum import tariffs and quotas.

Further guidance on the implementation of steel and aluminum tariff measures is yet to be released. 

Implementation of vehicle tariff-rate quota

One of the core provisions of the Economic Prosperity Deal is the introduction of a tariff-rate quota (TRQ) for U.K.-manufactured passenger vehicles classified under Chapter 87 of the HTSUS.

Under this arrangement, qualifying vehicles may enter the U.S. at a reduced tariff rate, up to a specified annual limit.

The key quota terms are as follows:

• TRQ limit for 2025: 65,205 vehicles
• TRQ limit from 2026: 100,000 vehicles annually
• In-quota tariff rate: 7.5%
• Above-quota tariff rate: 25%
• HTSUS code for in-quota entry: 9903.94.31

Quotas will be filled on a first-come, first-served basis and monitored through the Automated Commercial Environment (ACE) system.

For filing instructions and quota monitoring, please refer to Quota Bulletin 25-508.

It is important to note that the TRQ applies only to passenger vehicles of U.K. origin classified under HTSUS 8703.

Light trucks from the U.K., classified under HTSUS 8704, do not qualify for this quota. These entries remain subject to the existing Section 232 duties and must follow the entry procedures outlined in CSMS #64624801.

Duty application for auto parts

The agreement establishes a flat duty for eligible U.K.-origin automotive parts. These parts must be classified under subheadings listed in Note 33(j) of the HTSUS.

The following conditions apply:

• Effective date: June 30, 2025
• Tariff rate: 10% (including any most-favored-nation tariffs)
• HTSUS code: 9903.94.32 (followed by the appropriate Chapter 1 to 97 HTSUS)
• Scope: Parts for use in passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks
• Drawback: Not available
• Other tariffs:
  • Exempt from reciprocal tariffs under EO 14257
  • Subject to non-stacking provisions under EO 14289
  • Additional duties still apply (antidumping, countervailing, and other duties)
• Chapter 98/99 provisions:
  • Chapter 98 claims are allowed (such as partial duty exemptions for goods assembled abroad with U.S. components)
  • Duties under subheading 9802.00.60 shall be assessed based on the full value of the imported article
  • Chapter 99 provisions cannot be combined with the reduced duty under 9903.94.32 (additional duties listed under other Chapter 99 subheadings will be added on top of the 10% duty rate)
• Foreign Trade Zones:
  • Automotive parts must be admitted as privileged foreign status if entered on or after June 30, 2025, and will be subject upon entry for consumption to any ad valorem rates of duty related to their classification.

Duty-free treatment for civil aircraft

Qualifying U.K.-origin civil aircraft products may enter the U.S. duty-free under WTO terms, effective June 30, 2025. Products must meet the conditions of General Note 6 of the HTSUS.

This duty treatment is available under the following terms:

• Duty rate: 0% (under WTO terms)
• HTSUS code: 9903.96.01
• Coverage:
  • Civil aircraft (non-military)
  • Engines, parts, and components of civil aircraft
  • Other parts, components, and subassemblies of civil aircraft
  • Ground flight simulators and their parts and components
• Tariff exemptions:
  • Reciprocal tariffs under EO 14257
  • Section 232 aluminum tariffs (Proclamation 9704)
  • Section 232 steel tariffs (Proclamation 9705)

Please note that Special Program Indicator “C” must be reported to claim the preferential treatment for the column one rate of duty on the articles subject to the Agreement on Trade in Civil Aircraft.

Next steps for U.S. importers

With the tariff provisions of the Economic Prosperity Deal now in effect, U.S. importers should take the following steps to ensure compliance and correct duty application:

• Confirm product eligibility by reviewing the origin, classification, and intended use of U.K.-origin goods.
• Use the appropriate HTSUS subheadings when filing customs entries to claim preferential tariff treatment.
• Consult your customs broker to verify the accuracy of your filings and ensure compliance with documentation requirements. 

How Cole International can help

At Cole International, we constantly monitor changing trade regulations and offer customs and compliance consulting services to help businesses navigate these changes.

Additionally, we provide timely and efficient customs brokerage services to help U.S. importers streamline their customs clearance and other import processes.

If you import automobiles or parts from the U.K., please reach out to one of our trade professionals to discuss how we can help streamline the entry of your shipments and ensure compliance within the framework of the deal.