Implementation of Taiwan Tariffs

U.S. Customs and Border Protection has released the following notice regarding the change in certain tariffs applicable to products from Taiwan.

CSMS # 68762890 - GUIDANCE: Implementation of Certain Tariff-Related Elements of the Trade and Security Agreement Between the Taipei Economic and Cultural Representative Office and the American Institute in Taiwan

The purpose of this message is to provide guidance on the modification of certain Section 232 tariffs applied to aircraft components, automobile parts and wood products of Taiwan.

BACKGROUND

On May 28, 2026,  the Secretary of Commerce (Secretary) and the United States Trade Representative (USTR) will publish a Federal Register Notice (FRN) “Implementing Certain Tariff-Related Elements of a Trade and Security Agreement Between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States,” to modify certain Section 232 tariffs applied to certain aircraft components, automobile parts and wood products of Taiwan, effective for goods entered for consumption, or withdrawn from warehouse consumption, on or after 12:01 a.m. eastern time on May 1, 2026.

GUIDANCE

This guidance provides instructions for importers, brokers, and filers on submitting entries to U.S. Customs and Border Protection (CBP) pertaining to imports of certain aircraft components, automobile parts and wood products of Taiwan under headings 9903.94.66, 9903.94.67, 9903.94.68, 9903.94.69, 9903.76.24 and 9903.96.03 of the Harmonized Tariff Schedule of the United States (HTSUS).

The following HTSUS classifications and duty rates are effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time May 1, 2026. To the extent that implementation of this notice requires a refund of duties collected, importers may file a Post Summary Correction to request a duty refund.

Automobile Parts

9903.94.66: For an automobile part that is the product of Taiwan as provided for in subdivisions (g) and (u) of U.S. note 33 to this subchapter, with a Column 1 duty rate equal to or greater than 15 percent ad valorem.

0% additional ad valorem rate of duty

9903.94.67: For an automobile part that is the product of Taiwan as provided for in subdivisions (g) and (u) of U.S. note 33 to this subchapter, with a Column 1 duty rate less than 15 percent ad valorem.

15% additional ad valorem rate of duty

(15% is the combined Column 1 and Section 232 tariff rate)

Self-Certifying Automobile Parts

Applies to parts of passenger vehicles and light trucks (automobiles) that are the product of Taiwan when certified by the importer of record that such parts will be used for automobile production or repair activity in the United States, excluding articles classifiable in chapters 72, 73, or 76; articles classifiable in the provision of subdivision (g) of U.S. note 33; and articles classifiable in the provisions of subdivision (i) of U.S. note 38 to this subchapter.

To certify that such parts will be used for automobile production or repair activity in the United States, and not covered by the exclusions above, report one of the following Chapter 99 HTSUS:

9903.94.68: For an automobile part that is the product of Taiwan as specified in subdivisions (r) and (u) of U.S. note 33 to this subchapter, with a Column 1 duty rate  equal to or greater than 15 percent ad valorem.

0% additional ad valorem rate of duty

9903.94.69: For an automobile part that is the product of Taiwan as specified in subdivisions (r) and (u) of U.S. note 33 to this subchapter, with a Column 1 duty rate less than 15 percent ad valorem.

15% additional ad valorem rate of duty

(15% is the combined Column 1 and Section 232 tariff rate)

Wood products

9903.76.24: For wood products of Taiwan as provided for in subdivisions (d) and (f) of U.S. note 37 of this subchapter.

15% additional ad valorem rate of duty

Changes to Section 232 for Civil Aircraft Components

As provided in heading 9903.96.03, the additional duties imposed by headings 9903.82.02 and 9903.82.04–9903.82.19 (duties on aluminum, copper, and steel derivative products) shall not apply to articles the product of Taiwan that are civil aircraft (all aircraft other than military aircraft and unmanned aircraft) components that otherwise meet the criteria of General Note 6 of HTSUS, and are classifiable in the provisions of the HTSUS listed in the FRN “Implementing Certain Tariff-Related Elements of a Trade and Security Agreement Between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States,” but regardless of whether a product is entered under a provision for which the rate of duty “Free (C)” appears in the “Special” sub-column

Continue to report Special Program Indicator “C” to claim the preferential treatment for the column one rate of duty on the articles subject to the Agreement on Trade in Civil Aircraft.

DRAWBACK

Drawback continues to be available, in accordance with applicable regulations in 19 C.F.R. part 190, for eligible claims with respect to the auto parts duties imposed pursuant to Proclamation 10908, as amended, and the wood products duties imposed under Proclamation 10976.

NOT SUBJECT TO CERTAIN ADDITIONAL DUTIES

Entries of automotive parts described in U.S. note 33 subdivision (u) shall not be subject to the additional duties imposed on:

(1) articles of aluminum, of steel, or of copper or derivative aluminum, steel, or copper articles provided for in headings 9903.82.02 and 9903.82.04–9903.82.19.

(2) wood products provided for in headings 9903.76.01, 9903.76.02, 9903.76.03, and 9903.76.24.

For the list of Chapter 1 to 97 HTSUS classifications subject to HTSUS 9903.74.24, see CSMS 66492057 (listed under HTSUS 9903.76.02-9903.76.04).

For the list of Chapter 1 to 97 HTSUS classifications subject to HTSUS 9903.94.66 and 9903.94.67, see CSMS 64913145 (listed under HTSUS 9903.94.05).

For questions regarding Section 232 entry filing, contact the Trade Remedy Branch at TradeRemedy@cbp.dhs.gov.

If you have any questions, please contact our office.

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by IAB Admin

IEEPA Tariff Refunds: Preparing for the Commercial Impact

As IEEPA tariff refunds begin reaching importers, companies are now facing a new set of complex commercial, contractual, and compliance decisions that could have significant financial and legal implications.

See the following message from Sidley Austin LLP with key questions you might need to consider to plan ahead.

Now that the IEEPA tariff refunds are starting to flow, it is increasingly important that companies have a plan for how they are going to deal with the associated commercial implications.

If you increased prices because of the tariffs (wholly or in part), are you going to refund some/all of the refunds to your customers? If so, will it be a refund or a credit on future purchases? Are you going to share any of the tariff refund with foreign suppliers who adjusted their prices because of tariffs? If you do, does that create customs valuation issues for past imports? Are you going to seek reimbursement for tariff-related price increases passed on to you by your suppliers? What do your contracts require? What are the commercial realities; do they vary by customer/supplier? What is the risk you will be sued? What can you do to minimize that risk?

These are just some of the questions companies are grabbling with now. The answers are not necessarily easy, so it is important to think through the issues and come up with a plan.

If you have any questions, please contact our office.

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by IAB Admin

Section 122 Tariffs Struck Down by the CIT

CIT Rules Section 122 Tariffs Unlawful

The U.S. Court of International Trade issued a decision invalidating the 10% additional tariffs imposed under Section 122 of the Trade Act of 1974.

The following is a summary from Sidley Austin LLP regarding this ruling.

Earlier today, the U.S. Court of International Trade issued its decision in the cases challenging the legality of the 10% additional tariff President Trump imposed under Section 122 of the Trade Act of 1974 immediately after the Supreme Court struck down the tariffs he had imposed under the International Emergency Economic Powers Act on February 20, 2026. Specifically, the CIT entered a judgment that:

  1. declared that the proclamation imposing the Section 122 tariffs “to be invalid as contrary to law”;
  2. permanently enjoined the proclamation from applying to the subset of plaintiffs that had established standing (certain states that sued did not establish standing);
  3. required the government to implement the permanent injunction within 5 days; and
  4. required the government to refund the Section 122 tariffs paid by the subset of plaintiffs before the injunction goes into effect with interest.

The government is certain to appeal. We believe that the portion of the judgment striking down the tariffs is automatically stayed for 30 days, which will give the government time to seek a stay pending appeal. Since that part of the judgment applies to the tariffs/all importers, a stay pending appeal seems likely (which means importers will continue paying the Section 122 tariffs while the appeal progresses). As for the permanent injunction, it is not automatically stayed, but it only applies to a subset of the plaintiffs.

The court gave the government 5 days to implement the injunction, so we expect it will ask the Court of Appeals for the Federal Circuit to stay the injunction in that time. The question is whether importers should file their own court case and request the same permanent injunction. It is a bit strange that the court appears to be giving importers the incentive to do so, given that the same court is doing everything it can to ensure that importers do not need to file suit in order to get an IEEPA refund. This is not exactly an apples-to-apples comparison, but it is close.

So, in short, importers need to continue paying the Section 122 tariffs upon import for now, and will continue doing so during the appeal unless the Federal Circuit decides not to stay the permanent injunction, in which case, importers will have an incentive to file their own court cases requesting their own injunctions.

If you have any questions, please contact our office.

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by IAB Admin

CBP Releases ACE Reports to Monitor CAPE Refund Claims

U.S. Customs and Border Protection has announced several new ACE reports to monitor CAPE refund claims.

Please see the following notice and contact us at compliance@iab-sd.com if you have any questions.

CSMS # 68536553 - CBP Offers Multiple ACE Reports for Monitoring CAPE Refund Claims

On April 20, 2026, U.S. Customs and Border Protection (CBP) released the Consolidated Administration and Processing of Entries (CAPE) tool in the Automated Commercial Environment (ACE) Portal to streamline the submission and processing of valid refund requests for duties imposed under the International Emergency Economic Powers Act (IEEPA). After CBP review, the U.S. Department of Treasury (Treasury) will issue refunds via Automated Clearing House (ACH). IEEPA refund ACH transactions will begin as early as May 12, 2026. For more information on submitting CAPE Declarations, review CBP’s IEEPA Duty Refunds webpage.

To help the trade community prepare and monitor CAPE declaration submissions, CBP has provided multiple ACE Reports products. Below is an overview of the available reports:

  • ES-022: CAPE Entry Summary Report
    • This report links CAPE declaration, entry, and refund numbers to help track the refund process and displays refund amounts separated by principal and interest.
  • REV-603: Trade Refund Report
    • This report enables trade users to track CAPE declarations that have one of the following “Refund Secondary Statuses” after the refund is received by Treasury.
      • Sent to Treasury – This status indicates that Treasury has received an approved refund claim.
      • Treasury Issued – This status indicates that a refund has been issued.
      • Funds Diverted – This status indicates that funds have been diverted for an existing bill. Diversion occurs after liquidation of the entry summary, before the refund is issued.
      • Check/ACH Returned – This status occurs when refunds are rejected due to incomplete ACH Refund enrollment.
    • For help running this report, review the ACE Reports Trade Refund Report Quick Reference Card (QRC).
  • REV-613: ACH Rejected Refunds Report
  • REV-615: CAPE Details Refunds Report
    • Building on the REV-603 report, this report provides entry summary-level details associated with CAPE declarations that have been sent to Treasury.

ACE Reports Tips

  • Save Time by Scheduling Reports: To minimize processing time, CBP encourages the trade community to schedule recurring reports and get results delivered to an email inbox. For more information, review the Schedule a Report reference guide.
  • Use ACE Reports to Identify “4811 Notify Parties”: The following data elements can be added to Entry Summary (ES) reports to identify notify party information:
    • CF 4811 Notify Party Name
    • CF 4811 Notify Party Number

Support Resources:

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by IAB Admin