03/28/2025
Adjustments to Importing Automobiles and Automobile Parts into the U.S.
Check out this week’s Customs Corner to read about President Trump's signed proclamation, tariffs on countries importing Venezuelan oil, and more.
Trade and Customs Updates
1) President Trump Adjusts Imports of Automobiles and Automobile Parts into the U.S.
President Trump signed a proclamation on March 26, 2025, invoking 25% Section 232 tariffs on imports of automobiles and certain automobile parts.
President Trump signed a proclamation imposing a 25% tariff on imported automobiles (sedans, SUVs, crossovers, minivans, cargo vans, light trucks) and key auto parts (engines, transmissions, powertrain parts, and electrical components) under Section 232 of the Trade Expansion Act of 1962 to address national security concerns. The tariffs on automobiles are effective for goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 am eastern daylight time on April 3, 2025, and a date which will be published in a future Federal Register, however no later than May 3, 2025, for automobile parts.
USMCA-compliant vehicles can qualify for tariffs applied only to their non-U.S. content. If an importer overstates U.S. content, the full vehicle value will be taxed retroactively and prospectively. Tariffs on USMCA-compliant auto parts will be delayed until a process is established. The Secretary of Commerce will monitor imports, review national security implications, and recommend further action if necessary. No tariff refunds (drawbacks) are allowed, and Customs and Border Protection (CBP) will enforce compliance.
References:
Adjusting Imports of Automobiles and Autombile Parts Into the United States – The White House
2) Imposing Tariffs on Countries Importing Venezuelan Oil
President Trump signed an Executive Order on March 24, 2025, imposing tariffs on countries that import oil from Venezuela.
The order expands sanctions on Venezuela, citing the Maduro regime and the Tren de Aragua gang as threats to U.S. national security. Existing sanctions remain in effect, and a 25% tariff may be imposed starting April 2, 2025, on imports from any country that buys Venezuelan oil, either directly or indirectly. The Secretary of State has discretion over which countries face tariffs, and they expire one year after the country stops importing Venezuelan oil. Enforcement responsibilities are assigned to multiple agencies. The order also applies tariffs to Hong Kong and Macau if imposed on China and requires periodic reviews of its effectiveness.
Per NCBFAA and based on available data and trends, the primary importers include:
- China: The largest buyer, accounts for a significant portion of Venezuela's oil exports (over 50% in recent years, with approximately 503,000 barrels per day (bpd) reported in early 2025
- United States: Imports averaged around 222,000 bpd in 2024, though this may decrease after April 2025 due to expiring U.S. licenses and potential tariff policies
- India: Imports roughly 125,000 bpd in early 2025
- Spain: Imported about 75,000 bpd in 2024
- Cuba: Imports around 32,000 bpd in 2024
- Brazil: Imports an estimated at 8-10% of Venezuela's total exports in recent years
- Turkey: Imported about 13-14% of Venezuela’s exports in 2023
- Other countries, such as Italy, Russia, Singapore, and Vietnam, also import Venezuelan oil, though in smaller or less consistent volumes. These tariffs would be in addition to any other tariffs already in place on a country such as section 232, section 301, and/or IEEPA tariffs.
References:
IMPOSING TARIFFS ON COUNTRIES IMPORTING VENEZUELAN OIL – The White House
https://public-inspection.federalregister.gov/2025-05440.pdf
3) CBP Updates Section 232 Frequently Asked Questions (Again)
CBP has updated the Section 232 FAQs twice since our last Customs Corner to include additional information on the new Section 232 regulations.
Customs and Border Protection (CBP) has updated the Section 232 FAQs on its website.
The newly added questions address:
Question: How to report the country of melt and pour when the product is subject to Section 232 derivative measures, but the importer does not know the country of melt and pour?
Answer: For derivative steel, filters can report OTH for the country of melt and pour.
Question: How to report the country of smelt and cast when the product is subject to Section 232 derivative measures, but the importer does not know the country of smelt and cast?
Answer: For derivative aluminum, the filer, as an interim solution, may report any country other than the United States if the filer does not know the country of smelt or cast. Importers may submit a post-summary correction to update the country of smelt or cast when they obtain information on the actual countr(ies) of smelt or cast. For a long-term solution, CBP is looking into other options for reporting an unknown country of smelt or cast. CBP will provide guidance through CSMS when more information is available.
Question: For steel and aluminum derivatives subject to 9903.85.08 and 9903.81.91, is there a minimum amount of steel or aluminum content required to be subject to Section 232 duties?
Answer: No, there is no minimum amount of derivative steel or aluminum content provided for by Proclamations 10895 and 10896.
Reference:
4) Updated CSMS on Energy and Energy Resources from Canada Subject to Additional Duties
CBP has provided an updated guidance to include additional subheadings on the list of commodities of energy and energy resources from Canada.
The list provides updated HTS codes of energy and energy resources of Canada, as defined by HTS 9903.01.13. This is a full replacement of the previous list published in the March 19, 2025, CSMS message.
References:
Attachment_IEEPA Canada Energy and Energy Resources 03.21.2025.xlsx
5) APHIS Expansion of Risk-Based Sampling for Lettuce at U.S. Ports of Entry
The U.S. Department of Agriculture’s APHIS Plant Protection and Quarantine (PPQ) and the Department of Homeland Security’s Customs and Border Protection (CBP) will expand the Risk-Based Sampling at Ports of Entry (RBS POE) program to cover additional lettuce varieties at select U.S. ports beginning the week of March 31, 2025.
The APHIS Plant Protection and Quarantine (PPQ) and U.S. Customs and Border Protection (CBP) will expand the Risk-Based Sampling at Ports of Entry (RBS POE) program to include additional lettuce varieties starting the week of March 31, 2025. The program aims to reduce inspections for compliant imports and encourage higher-quality goods. While the entry process remains unchanged, importers are advised to file early and include APHIS Core Message Set data to ensure smooth processing under RBS POE procedures.
The list of RBS POE eligible commodities includes:
Conveyance
- Southern Border, Truck
Commodity
- Head Lettuce (also known as Iceberg), Romaine, Butterhead, Red/Green Leaf, and Other Lettuce
Country of Origin
- Mexico
Reference:
CSMS # 64565215 - Expansion of Risk-Based Sampling for Lettuce Varieties at U.S. Ports of Entry
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