06/20/2025
U.S. and U.K. Finalize Trade Agreement
Check out this week's Customs Corner to read more on the finalized U.S. and U.K. trade agreement, New Forced Labor allegation portal, and more.
Trade and Customs Updates
1) U.S. and U.K. Finalize Trade Agreement
President Trump and U.K. Prime Minister Keir Starmer have jointly unveiled the U.S.-U.K. Economic Prosperity Deal, an agreement designed to boost bilateral trade, lower trade barriers, and enhance the security and resilience of critical supply chains.
President Trump and U.K. Prime Minister Keir Starmer have jointly announced the Economic Prosperity Deal between the United States and the United Kingdom, an agreement aimed at expanding bilateral trade, reducing trade barriers, and strengthening national security supply chains.
Outlined in the General Terms announced on May 8, the deal delivers significant market access for American exports—particularly beef, ethanol, and agricultural goods—while committing the U.K. to eliminate or reduce non-tariff barriers that have historically disadvantaged U.S. products.
The agreement also includes provisions to address U.S. national security concerns under existing trade and tariff authorities.
Key highlights of the deal include:
- Automotive Imports: A new annual quota allows up to 100,000 U.K.-made vehicles to enter the U.S. at a reduced 10% tariff, compared to the standard 25% rate. U.K. auto parts used in U.K.-origin vehicles will also be eligible for the lower tariff.
- Aerospace Trade: Tariffs on aerospace products covered under the WTO Agreement on Trade in Civil Aircraft will be eliminated, establishing a tariff-free bilateral exchange for key aerospace components.
- Steel and Aluminum: While current tariffs remain, the U.S. will consider future tariff-rate quotas on U.K. steel and aluminum—pending the U.K.'s compliance with U.S. supply chain and ownership security standards.
- Pharmaceuticals: The nations will pursue preferential trade terms for U.K. pharmaceutical products, contingent on a section 232 national security investigation and supply chain safeguards.
- Future National Security Alignment: Both sides agreed to develop a cooperative framework to address potential future section 232 investigations in sensitive sectors.
President Trump cited the deal as a necessary and appropriate step to address national security risks identified in previous presidential proclamations regarding steel, aluminum, and automotive imports. The measures align with Executive Order 14257, which authorizes reciprocal tariffs to address unfair trade practices contributing to U.S. trade deficits.
Implementation steps, including modifications to the Harmonized Tariff Schedule of the United States (HTSUS), are expected to be published in the Federal Register within seven days. The Department of Commerce, in consultation with U.S. Customs and Border Protection and the International Trade Commission, will oversee the transition and administration of these new trade measures.
Reference:
Fact Sheet: Implementing the General Terms of the U.S.-UK Economic Prosperity Deal – The White House
2) CBP Launches New Forced Labor Allegation Portal to Streamline Reporting
On June 20, 2025, U.S. Customs and Border Protection launched the Forced Labor Allegation Portal, allowing trade users to anonymously submit and track forced labor allegations with supporting documentation.
CBP has officially launched the Forced Labor Allegation Portal, offering trade users a streamlined platform to submit allegations of forced labor in supply chains. The portal, accessible at https://flallegations.cbp.gov/s, supports anonymous submissions and allows users to upload and view supporting documentation.
Effective immediately, users trying to file reports through CBP’s previous Trade Violations Reporting (TVR) system will be automatically redirected to the new portal. The upgrade is designed to enhance coordination and data sharing among CBP’s Forced Labor Division (FLD), the Office of Field Operations (OFO), and Centers of Excellence and Expertise (CEE).
To assist users, CBP has provided Quick Reference Guides and an instructional video on its Forced Labor Website. Additionally, the agency will host three public webinars to guide stakeholders through the portal:
- How to Join – Tuesday, July 1, 2025, 11:00 a.m. EST:
Webinar Link: Forced Labor Allegation Portal (East Coast Attendees) - How to Join – Tuesday, July 8, 2025, 8:00 p.m. EST:
Webinar Link: Forced Labor Allegation Portal (International Attendees) - How to Join – Tuesday, July 22, 2025, 2:00 p.m. EST:
Webinar Link: Forced Labor Allegation Portal (West Coast Attendees)
Reference:
3) CBP Issues New Guidance on Reporting Country of Smelt and Cast for Derivative Aluminum Imports
Effective June 28, 2025, CBP will require importers of derivative aluminum subject to Section 232 measures to report “UN” for unknown smelt or cast countries, triggering a 200% duty rate under HTS codes 9903.85.67 or 9903.85.68, as applicable.
U.S. Customs and Border Protection (CBP) has issued updated guidance for importers of derivative aluminum products subject to Section 232 tariffs, clarifying how to report the country of smelt and cast when that information is unknown.
Effective June 28, 2025, if the country of smelt or cast is unknown, importers must report “UN” instead of an ISO country code and will be required to use HTS codes 9903.85.67 or 9903.85.68, triggering the 200% Section 232 duty rate applicable to Russian aluminum. Importers must indicate either a primary or secondary country of smelt using a “Y” response; both fields may not be marked “N.” This policy aims to enforce compliance and traceability in the aluminum supply chain under national security trade measures.
Reference:
4) Steel & Aluminum Exclusion Overage Claims Subject to 232 Duties and Possible penalties
Steel & aluminum exclusion overage claims made at the time of entry will be subject to 232 duties and possible CBP penalties.
CBP is reminding the import industry that importers must manage their 232 exclusion volumes to ensure that they do not overclaim their allotted amounts. Exclusion overclaims are subject to applicable 232 sanctions and may be subject to CBP penalties for late payment and noncompliance. CBP is posting certain deactivated Section 232 product exclusions that have met or exceeded their 95 percent threshold in ACE on a weekly basis. To utilize any remaining quantity, importers can choose to file a Post Summary Correction (PSC) and request a refund of any Section 232 duties paid.
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