Commerce, USTR Issue Notice Implementing Tariff Exemptions in US-EU Deal
Tariff cuts for automobiles and auto parts take retroactive effect Aug. 1, said the Commerce Department and the Office of the U.S. Trade Representative in a notice implementing that and other parts of the recent U.S.-EU trade deal.
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According to the notice, EU passenger vehicles and light trucks with a most-favored nation duty rate of over 15% should be filed under new Harmonized Tariff Schedule subheading 9903.94.50, with no reciprocal tariff applicable. Passenger vehicles and light trucks with an MFN rate under 15% will pay a flat 15% tariff that includes both the MFN and the reciprocal rate under new subheading 9903.94.51.
The same tariff treatment is provided to EU auto parts, under new subheadings 9903.94.52 and 9903.94.53.
Autos and auto parts under those subheadings aren't subject to Section 232 tariffs on aluminum, steel and copper, including their derivatives, the notice said.
Effective Sept. 1, the notice adds exemptions under new subheading 9903.02.74 from reciprocal tariffs on the EU for over 200 subheadings covering unavailable natural resources of Chapters 7, 8, 9, 25, 26, 28, 31, 32, 36, 38, 45, 50, 71, 72, 79, 80 and 81.
New subheading 9903.02.75 provides for reciprocal-tariff-free treatment to the EU for “Essential oils other than those of citrus fruit, other, nesoi, for religious purposes only (classifiable in subheading 3301.29.51).” That appears to be the only tariff exemption in the notice that doesn't encompass all goods imported under a given subheading.
Also effective Sept. 1, EU civil aircraft and civil aircraft parts imported under over 550 subheadings of Chapters 39, 40, 48, 68, 70, 73, 74, 76, 81, 83, 84, 85, 88, 90, 91, 94, 96 and 98 are duty free under new subheading 9903.02.76. That includes exemptions from reciprocal tariffs, as well as Section 232 tariffs on copper, aluminum and steel and their derivatives.
Likewise, starting Sept. 1, new subheading 9903.02.77 exempts EU pharmaceutical products under 779 subheadings in the tariff schedule.