Reciprocal Tariffs: CBP Guidance (CSMS)

The U.S. has introducing a 10% reciprocal tariff since April 5, 2025. Here’s what importers need to know to stay compliant.

The U.S. imposes a 10% reciprocal tariff starting April 5, 2025, impacting global trade dynamics.

Since 5 April 2025, U.S. importers will face new customs duties under Executive Order: "Regulating Imports with a Reciprocal Tariff", designed to address persistent U.S. trade deficits. This blog post breaks down the essential customs compliance requirements stemming from this development, including HTSUS codes, exceptions, reporting formats, and how professionals in the USA, EU, and UK can prepare.

Download CSMS - CBP Official Guidance

📌 Is This a Customs or Export Controls Issue?

✔️ Customs – This is a clear case of U.S. import regulation with direct tariff implications.

📌 Is This Relevant for the U.S., UK or EU?

✔️ United States Focus, but with implications for all global traders selling into the U.S. market, particularly Canada, Mexico, and Column 2 countries like Belarus, Russia, Cuba, and North Korea.

🧭 Key Highlights at a Glance

• Effective Date: April 5, 2025 – 12:01 a.m. EDT

• Tariff Increase: 10% ad valorem on designated goods

• HTSUS Code: 9903.01.25 (primary), with a list of exceptions under 9903.01.26–.34

• In Transit Exception Deadline: May 27, 2025

• 20% U.S. Content Rule: Applies under HTSUS 9903.01.34

• Drawback Allowed

• De Minimis Exemption Remains (for now)

  
  

⚠️ Reciprocal Tariff Compliance Basics

Effective April 5, 2025, all U.S. imports (except listed exclusions) will be subject to an additional 10% ad valorem duty, classified under HTSUS 9903.01.25. Importers must declare both the standard tariff line (Ch. 1–97 HTSUS) and the appropriate Chapter 99 classification.

Important: If you're not using 9903.01.25, you must specify one of the exception codes, or CBP may reject your filing.

✅ Who’s Exempt? – Use These HTSUS Codes

HTSUS Code	Exception Applies To
9903.01.26	Products of Canada under USMCA
9903.01.27	Products of Mexico under USMCA
9903.01.28	Goods in transit before April 5, 2025 (until May 27 only)
9903.01.29	Products from Column 2 countries (e.g. Belarus, Cuba)
9903.01.30	Donations for humanitarian relief
9903.01.31	Informational materials (e.g. books, CDs, posters)
9903.01.32	Annex II products only
9903.01.33	Items already covered under Section 232 actions
9903.01.34	Goods with at least 20% U.S. content (tariff applies to non-U.S. portion only)

📋 Special Notes on Reporting

• Always list Chapter 99 codes before the primary Ch. 1–97 HTSUS line in your entry summary.

• When using 9903.01.34 (U.S. content exception), split your entry:

  • Line 1: U.S. content (HTSUS + 9903.01.34)

  • Line 2: Non-U.S. content (HTSUS + 9903.01.25, with zero quantity but full non-U.S. value)

• Drawback is permitted — good news for exporters reclaiming duties.

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🔍 What About Chapter 98 Entries?

CBP will waive the additional duties for most Chapter 98 entries except:

• 9802.00.80: Duty applies to foreign-assembled value

• 9802.00.40–.60: Duty applies to repair or alteration value

  
  

🏗️ Foreign Trade Zones (FTZ) Rules Are Changing

From April 9, 2025, goods not exempt under 50 U.S.C. 1702(b) and admitted to a U.S. FTZ must be declared as Privileged Foreign Status if they fall under the Executive Order. These goods will be subject to the duty rates in effect at time of FTZ admission, not consumption entry.

📦 De Minimis Still Applies – For Now

The $800 threshold exemption for low-value shipments under 19 U.S.C. 1321(a)(2)(C) remains available unless further restricted — except where specified under other executive orders (like the fentanyl-related order from April 2, 2025).

📌 Your Action Plan

1. Review your import portfolio – Identify goods potentially subject to the new 10% duty.

2. Ensure compliance with HTSUS reporting – Include the correct Ch. 99 classifications.

3. Train your customs brokers and staff – Especially on entry line splitting and ACE reporting.

4. Assess FTZ strategies – Consider admission timing and status.

5. Explore drawback opportunities – Especially for re-exported goods

6. .

📣 Final Thoughts from Arne Mielken

The U.S. government is signalling a clear shift in trade policy with the rollout of reciprocal tariffs. For customs professionals, importers, and trade compliance consultants, this represents not just a technical tariff change, but a strategic moment to reassess import structures, sourcing strategies, and trade documentation processes.

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