CBP Updates Filing Instructions for Replacement Duties on Certain EU, Japan, UK Imports

CBP now requires importers to use specific Chapter 99 provisions when reporting replacement duties, with distinct filing rules depending on whether a drawback is being requested.

U.S. Customs and Border Protection (CBP) has issued updated filing instructions for entries of certain EU, Japan, and UK goods that are subject to replacement duties under Chapter 99 of the HTSUS.

These instructions apply to goods under HTSUS headings 9903.02.20, 9903.02.73, 9903.94.41, 9903.94.43, and 9903.94.32, as outlined in 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 that cover goods from the EU, Japan, or the UK.

HTSUS headings covered by the update

CBP’s guidance applies to the following HTSUS headings:

9903.02.20 (EU reciprocal tariff)

For a product of the European Union with a Column 1 rate of duty less than 15%, the total duty is 15%. Filing rules are as follows:

• Report the 15% duty amount on heading 9903.02.20 and report 0 duty amount and line value on the Chapter 1–97 line.
• For a drawback, report the Column 1 duty on the Chapter 1–97 line and the difference (to reach 15%) on heading 9903.02.20.

9903.02.73 (Japan reciprocal tariff)

For a product of Japan with a Column 1 rate of duty less than 15%, the total duty is 15%. Filing rules are as follows:

• Report the 15% duty amount on heading 9903.02.73 and report 0 duty amount and line value on the Chapter 1–97 line.
• For a drawback, report the Column 1 duty on the Chapter 1–97 line and the difference (to reach 15%) on heading 9903.02.73.

9903.94.41 (Japan automobiles under Section 232)

For an automobile that is a product of Japan with a Column 1 duty rate less than 15% ad valorem, the total duty is 15%. Filing rules are as follows:

• Report the 15% duty amount on heading 9903.94.41 and report 0 duty amount and line value on the Chapter 87 line.
• For a drawback, report the Column 1 duty on the Chapter 87 line and the difference (to reach 15%) on heading 9903.94.41.

9903.94.43 (Japan auto parts under Section 232)

For an automobile part that is a product of Japan with a Column 1 duty rate less than 15% ad valorem, the total duty is 15%. Filing rules are as follows:

• Report the 15% duty amount on heading 9903.94.43 and report 0 duty amount and line value on the Chapter 1–97 line.

• For a drawback, report the Column 1 duty on the Chapter 1–97 line and the difference (to reach 15%) on heading 9903.94.43.

9903.94.32 (UK auto parts under Section 232)

For an automobile part that is a product of the United Kingdom with a Column 1 duty rate less than 10% ad valorem, the total duty is 10%. Filing rules are as follows:

• Report the 10% duty amount on heading 9903.94.32 and report 0 duty amount and line value on the Chapter 1–97 line.
• For a drawback, report the Column 1 duty on the Chapter 1–97 line and the difference (to reach 10%) on heading 9903.94.32.

Importers who may have incorrectly reported the total duty amounts under the above headings should file a post summary correction (PSC) to update their entry summary information.

Next steps for U.S. importers

With CBP’s new instructions now in place, importers must make sure their filings are accurate and compliant. Key steps to take include:

• Reviewing entries involving the above HTSUS codes to confirm proper duty reporting
• Verifying that replacement duties are recorded on the Chapter 99 line, and that the base line shows 0 duty in standard filings or the MFN duty in drawback filings
• Auditing entries for potential overpayments and using PSCs to recover duties where applicable
• Working with a customs broker to validate classifications, correct past filings, and ensure compliance with CBP 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 processes.

To confirm whether your imports from the EU, Japan, or the UK fall under the new Chapter 99 provisions, qualify for the full replacement duty, or remain at the standard MFN rate, please reach out to one of our trade professionals.