The Department of Commerce has published procedures that can be used to ease the Section 232 tariff on imports of automobiles that took effect April 3.
This tariff does not apply to the U.S. content (i.e., the value of the automobile attributable to parts wholly obtained, produced entirely, or substantially transformed in the U.S.) in vehicles imported from Mexico and Canada that qualify for preferential tariff treatment under the U.S.-Mexico-Canada Agreement.
The DOC notice provides that, beginning May 20, importers of such vehicles may seek to take advantage of this tariff exclusion by submitting documentation that identifies the following information: total declared customs value of an automobile in the model line at the time of importation, the total value of U.S. and non-U.S. content, vehicle production location(s), country of final assembly, certification of USMCA preference eligibility, importer name, importer of record number, manufacturer name and facility, country of origin, and vehicle year, make, and model.
Once the DOC reviews and confirms the accuracy of this information it will inform U.S. Customs and Border Protection of the authorized importers and automobiles.
However, if CBP determines that the declared U.S. content is overstated or inconsistent with the figure approved by the DOC, the Section 232 tariff will apply retroactively (from April 3) and prospectively (from the date of the inaccurate overstatement to the date it is corrected) to the full value of all automobiles of the same model line imported by the same importer.
Click here to stay up-to-date on the scope and implementation of the Section 232 tariffs on automobiles and auto parts. Click here for ST&R’s three-pronged approach to avoiding, mitigating, and/or recovering these and other tariffs. For further information, please contact ST&R at tariffs@strtrade.com.
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