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Amendments to Adjusting Imports of Automobiles and Automobile Parts Into the United States

  • Writer: IFF, inc.
    IFF, inc.
  • May 1
  • 2 min read



Import Adjustment Offset for U.S.-Assembled Automobiles

1. Eligibility and Credit Schedule


  • U.S. auto manufacturers can receive an import duty offset for vehicles assembled domestically:

    • 3.75% of total MSRP for vehicles assembled between April 3, 2025 – April 30, 2026

    • 2.5% of total MSRP for vehicles assembled between May 1, 2026 – April 30, 2027

  • These percentages correspond to a 25% duty on parts that represent 15% and 10% of a car’s MSRP, respectively.


2. Conditions


  • Only vehicles fully assembled in the U.S. qualify.

  • Offsets can only be used by importers designated by the manufacturer to reduce tariff liabilities under Proclamation 10908.

  • If the offset exceeds the manufacturer's tariff liability, it cannot be applied to other tariff obligations.

  • Manufacturers can choose which importers (including their suppliers) are allowed to use the offset.


3. Application Process 


Within 30 days of the order, the Secretary must create a process for manufacturers to apply for the offset. Manufacturers must provide:

  • The projected number of U.S.-assembled vehicles and the plant locations.

  • Expected tariff costs under Proclamation 10908 (both direct and from suppliers).

  • Total requested offset amount.

  • A list of authorized importers of record and how much each can use.

  • A signed certification from a senior officer affirming the information is accurate and verified.


4. Approval and Implementation


  • Once the submission is verified, the Secretary will approve the request and notify U.S. Customs and Border Protection (CBP).

  • CBP will then implement the offset using standard customs procedures.


5. Regulations and Enforcement


  • The Secretary, with other federal officials, will issue rules to support the implementation, including:

    • Defining U.S. content standards and verifying certifications.

    • Updating the Harmonized Tariff Schedule (HTSUS) if needed.

  • CBP may request additional info from importers and will begin applying offsets promptly.

  • Overuse of offsets by importers may result in financial penalties.


6. Monitoring and Presidential Review


  • The Secretary will continue monitoring auto imports and their national security implications.

  • The President will be advised if changes to tariffs or policy are needed.


7. Supersession


  • Any prior proclamation or executive order that conflicts with this one is overruled.

 


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