CBP Issues Guidance for New Reciprocal Tariffs Effective August 7

U.S. Customs and Border Protection (CBP) has released updated guidance on the implementation of reciprocal tariffs under the authority of the International Emergency Economic Powers Act (IEEPA) and Executive Order 14257, as amended by the July 31, 2025 Executive Order, “Further Modifying the Reciprocal Tariff Rates.”

Key Implementation Details

1. Applicability

• If the existing duty rate is ≥15%, no additional duty is owed (HTSUS 9903.02.19)
• If the existing duty rate is <15%, the reciprocal tariff brings the total to 15% (HTSUS 9903.02.20)

2. In-Transit Exemption

Goods loaded and in transit before August 7 and entered before October 5, 2025, remain subject to the prior 10% reciprocal tariff under HTSUS 9903.01.25.

 

3. Notable Exemptions

Some products and scenarios are exempt from the new duties. Key exemption headings include:
9903.01.26 & 9903.01.27: USMCA-qualified goods from Canada or Mexico
9903.01.29: Products from Column 2 countries (Belarus, Cuba, North Korea, Russia)
9903.01.30–31: Humanitarian donations and informational materials
9903.01.32–33: Items covered under specific exceptions or Section 232 (e.g., steel, aluminum, autos)
9903.01.34: Goods with 20%+ U.S. content (only non-U.S. value is dutiable)
Refer to the HTSUS and EO annexes for full exemption descriptions and applicable classifications.

4. Treatment of Chapter 98 Goods

Most goods properly entered under Chapter 98 are exempt, except:
Subchapter XIX (AGOA), Subchapter XX (CBTPA), Subchapter XXII (various FTAs), and certain 9802 provisions are still subject to reciprocal duties.
TIB entries under 9813 must report both the 9813 and relevant IEEPA Chapter 99 number, though no duty will be paid unless the TIB conditions are violated.

Transshipment Penalties

HTSUS Reporting Sequence

1. Begin with Chapter 98, if applicable
2. Report all applicable Chapter 99 numbers in proper sequence:
• Section 301
• IEEPA (fentanyl)
• IEEPA (reciprocal tariffs)
• Section 232 / 201
• Quota and replacement duty programs
3. Report the Chapter 1–97 HTSUS number for the commodity
4. Ensure duty is correctly tied to the applicable HTSUS, including any split between U.S. and foreign content (e.g., under 9903.01.34)

Recommended Actions

• Review Annex I country list and applicable tariff rates
• Confirm proper HTS codes and use correct Chapter 99 headings
• Evaluate country-of-origin routing to avoid transshipment penalties
• Contact your CBP representative with filing issues or classification errors