CBP Updates Vehicle Duty Offset Guidance

Jun. 30, 2026
By: Chaney A. Finn

U.S. Customs and Border Protection (CBP) issued updated guidance for the import adjustment offset for Section 232 duties on automobile and medium- and heavy-duty vehicle (MHDV) parts. CBP stated that importers should closely monitor each import adjustment license to ensure total offset claims do not exceed the authorized amount. The agency recommended using the TR-015 report (in the ACE Portal) to track license usage. Importers who exceed their available offset credits remain responsible for the Section 232 duties on the excess amount and may face penalties.

When claiming an offset, importers should continue filing the applicable Chapter 99 tariff classifications for automobile parts (9903.94.05 or 9903.94.07) or MHDV parts (9903.74.08 or 9903.74.09). They should report zero duty under the applicable Chapter 99 provision while declaring the standard column one duty under Chapters 1 through 97 when submitting the offset license number.

For imports from Japan, the United Kingdom, the European Union, South Korea, and Taiwan, CBP clarified that the offset applies only to the Section 232 portion of the duty, which equals the difference between the standard column one rate and the Section 232 rate. Importers should continue using the appropriate Chapter 99 tariff classifications for these imports, report zero duty under Chapter 99, and declare the applicable column one duty under Chapters 1 through 97 when providing the offset license number.

CBP also instructed importers filing Harmonized Tariff Schedule provisions 9802.00.40, 9802.00.50, 9802.00.60, or 9802.00.80 on the same entry line as qualifying automobile or MHDV parts to report zero duty for those Chapter 98 classifications.

The guidance further clarifies that automobiles and MHDV parts entered under Chapter 99 with a valid offset license remain exempt from Section 232 steel, aluminum, and wood duties, with no additional Chapter 99 classification required for those exemptions. Importers also may submit post-summary corrections to apply previously paid Section 232 duties toward available offset license credits.

Should you have any questions regarding duty offsets, Section 232 tariffs, or any other trade-related questions, do not hesitate to contact any attorney at Barnes, Richardson & Colburn, LLP.