The United States and South Korea have finalized the Korea Strategic Trade & Investment Deal, and CBP has now issued detailed implementation guidance through CSMS #66987366. This update modifies how several Section 232 and Reciprocal Tariff duties apply to Korean-origin goods.

Below is a clean breakdown of the new rules — especially how to use 9903.94.60, 9903.02.79, and 9903.02.80 correctly.

If you import autos, auto parts, machinery, electronics, wood furniture, or industrial products from Korea, this update matters directly to your imports.

1️⃣ Key CBP Takeaway: New Duty Calculations for Korean-Origin Goods

CBP confirms the deal modifies tariff treatment for Korean-origin goods covered under:

• Reciprocal Tariff Executive Order (EO 14257)
• Section 232 Autos (Proclamation 10908)
• Section 232 Steel (9705), Aluminum (9704)
• Section 232 Copper (10962)
• Section 232 Wood & Derivatives (10976)
• Section 232 MHDVs & Parts (10984)

2️⃣ Section 232 Automobiles — Correct Use of 9903.94.60 & 9903.94.61

🚗 Automobiles (passenger vehicles & light trucks)

Effective November 1, 2025.

CBP now determines Section 232 auto duties based on the Column 1 duty rate (General or Special KR rate).

✔ If Column 1 duty ≥ 15% → No additional duty

Use 9903.94.60

• Korean-origin autos with 15%+ duty rate owe zero extra Section 232 duty.

Importer example:
Column 1: 17% → Report 9903.94.60 → No Section 232 add-on.

✔ If Column 1 duty < 15% → Total must equal 15%

Use 9903.94.61

• If duty is 2.5%, CBP requires total duty = 15%.
• Difference (12.5%) is reported under 9903.94.61.

3️⃣ Section 232 Auto Parts — Correct Use of 9903.94.62 & 9903.94.63

🔧 Auto Parts

Also effective November 1, 2025.

✔ If Column 1 ≥ 15% → No additional 232 duty

Use 9903.94.62

✔ If Column 1 < 15% → Total must equal 15%

Use 9903.94.63

These apply to:

• Engines
• Engine parts
• Transmissions
• Electrical components
  (BUT not to steel, aluminum, copper, or excluded notes.)

4️⃣ Self-Certified Auto Parts (Used for U.S. Production or Repair)

When the importer certifies that the part will be used in U.S. automobile production/repair, and it is not steel, aluminum, copper, or a derivative:

✔ Column 1 ≥ 15% → Use 9903.94.64

✔ Column 1 < 15% → Use 9903.94.65

These lines support the manufacturing drawback under 1313(a)/(b).

5️⃣ Section 232 Wood Products — New 9903.76.23

Effective November 14, 2025, for certain Korean-origin:

• Kitchen cabinets
• Upholstered wooden furniture

HTS included:
9401.61.4011, 9401.61.4031, 9401.61.6011, 9401.61.6031, 9403.40.9060, 9403.60.8093, 9403.91.0080

These products now require a combined 15% duty.
Use 9903.76.23.

6️⃣ Reciprocal Tariff (IEEPA) — Correct Use of 9903.02.79 & 9903.02.80

Beginning November 14, 2025, the Reciprocal Tariff for Korean-origin goods depends entirely on the Column 1 rate.

This replaces old 9903.02.56, which is now retired.

✔ If Column 1 duty ≥ 15% → No additional reciprocal tariff

Use 9903.02.79

Example:
Column 1 = 20% → File under 9903.02.79 → Additional duty = 0.

✔ If Column 1 duty < 15% → Total must equal 15%

Use 9903.02.80

Example:
Column 1 = 3% → 12% assessed under 9903.02.80 → Combined duty = 15%.

Why This Matters

This replaces the old “flat 15%” reciprocal tariff approach and ensures Korean-origin goods face predictable and transparent tariff calculations.

7️⃣ Civil Aircraft — Tariffs Removed (Use 9903.02.81)

Civil aircraft and related parts meeting General Note 6 criteria, when Korean-origin, are now exempt from Section 232 aluminum, steel, copper, and reciprocal tariffs.

Use 9903.02.81 to reflect that no extra duties apply.

8️⃣ Exemptions from Reciprocal Tariffs Remain in Place

Korean-origin goods classified under:

• 9903.01.30
• 9903.01.31
• 9903.01.32
• 9903.01.33
• 9903.01.34

continue to be exempt from reciprocal tariffs.

💬 Final Takeaway for Importers

The U.S.–Korea Strategic Trade & Investment Deal significantly reshapes tariff treatment for Korean-origin autos, parts, wood products, and goods subject to reciprocal tariffs.

For importers, this means:

• More predictable duty rates
• Clear rules for Section 232 auto and auto parts
• Accurate use of 9903.94.xx and 9903.02.7x provisions
• Reduced unexpected tariff exposure
• Greater transparency in sourcing from Korea

If you or your clients need help determining which Chapter 99 line applies to a shipment — or correcting previously filed entries — feel free to email us anytime. ⚡🟦🔥