Notice Sets Tariff Provisions for US-Korea Tariff Cuts on Nov. 14, Auto Tariffs Cut Nov. 1
Reductions of reciprocal tariffs on South Korea, as well as of Section 232 tariffs on South Korean lumber, will take retroactive effect Nov. 14 under a recently agreed trade deal, according to a notice released Dec. 3 by the Office of the U.S. Trade Representative and the Commerce Department.
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The notice also implements the cut to South Korean Section 232 tariffs on autos and auto parts to an all-inclusive 15% for most goods, as announced earlier this week (see 2512020018).
Beginning Nov. 14, reciprocal tariffs for goods with a Column 1 general or special rate of duty below 15% will face a 15% reciprocal tariff under new subheading 9903.02.80, and goods with a Column 1 general or special rate of duty above 15% will only pay most-favored nation tariffs under new subheading 9903.02.79.
“For the purposes of this notice, ‘column 1 duty rate’ means the applicable ad valorem or ad valorem equivalent rate of duty under Column 1-General or Column 1-Special” of the tariff schedule, the notice said. A subsequently issued CSMS message issued by CBP said, "The Special Program Indicator (SPI) 'KR' must be present to make the duty determination based on the Column 1- Special duty rate under the Korean Free Trade Agreement (KORUS)."
The same tariff structure will apply to Section 232 tariffs on autos and auto parts beginning Nov. 1, with subheading 9903.94.61 setting a 15% rate for autos with an MFN rate lower than 15%, and 9903.94.60 applying no additional tariff to autos with an MFN rate higher than 15%.
Subheadings 9903.94.62 and 9903.94.63 apply MFN and 15% tariffs, respectively, to goods listed as subject to Section 232 auto parts tariffs. Subheadings 9903.94.64 and 9903.94.65 apply the same respective tariff rates to goods that aren’t listed “when certified by the importer of record that such parts will be used for automobile production or repair activity in the United States.”
Also beginning Nov. 14, Section 232 tariffs on Korean lumber derivatives, i.e., upholstered furniture and wooden cabinets and vanities, will be applied at 15%. While the deal set a similar all-in 15% rate as that included in the Japan and EU deals, only one subheading, 9903.76.23, applies because all covered goods from Korea have an MFN rate lower than 15%, according to the notice.
Unlike the Japan and EU deals, the relevant tariff schedule note mentions goods that qualify for the U.S.-Korea FTA.
“The duty provided in heading 9903.76.23 shall be collected in lieu of any special rate of duty otherwise applicable under the appropriate tariff subheading, except for goods qualifying under the United States-Korea Free Trade Agreement,” the annex to the notice said.
Finally, new subheading 9903.02.81 will apply to civil aircraft imported under subheadings listed in the annex. No additional tariff applies to the subheading.
"Filers should take action to correct previously filed entries as necessary to reflect the modified duty rate applicable under the HTSUS provisions above as soon as possible," CBP's CSMS message said. "For unliquidated entries for which estimated duties have already been deposited, importers may file a post summary correction (PSC) to request a refund. Upon PSC approval, the refund will be issued at liquidation. For liquidated entries, importers may request a refund by filing a protest within 180 days after liquidation in accordance with 19 U.S.C. 1514."