CBP Guidance on US-UK and Northern Ireland Economic Prosperity Deal
Trade Update • July 2, 2025
ustoms and Border Protection (CBP) has published guidance for filing entries of imports of automobile parts and civil aircraft products pursuant to the Executive Order: General Terms of United States of America-United Kingdom of Great Britain and Northern Ireland Economic Prosperity Deal.
Automobile Tariff-Rate Quota (TRQ)
As outlined in Quota Bulletin QB 25-508, automobiles of UK origin classified under specific HTSUS 8703 subheadings are subject to a tariff-rate quota (TRQ) effective from June 30 through December 31, 2025.
2025 TRQ Quantity: 65,205 automobiles
Annual TRQ (from 2026 onward): 100,000 units, administered quarterly
This measure follows Proclamation 10908 related to Section 232 national security tariffs. For detailed entry filing instructions, refer to Quota Bulletin QB 25-508.
Note: For UK-origin light trucks classified under HTSUS 8704, refer to CSMS # 64624801 – GUIDANCE: Import Duties on Certain Automobiles for separate filing guidance.
Full Guidance: CSMS # 65475228 – GUIDANCE: 2025 United Kingdom Automobile Tariff Rate Quota
Auto Parts
Under HTSUS subheading 9903.94.32, specific auto parts originating in the UK are now eligible for a total duty rate of 10% (inclusive of most-favored-nation tariffs (MFN tariffs), effective June 30, 2025.
Applies to parts of sedans, SUVs, CUVs, minivans, cargo vans, and light trucks
Relevant HTSUS subheadings are listed in U.S. Note 33(j) to Subchapter III of Chapter 99
For classification reference, see Attachment 1.
Filing Instructions:
Report HTSUS 9903.94.32 followed by the appropriate Chapter 1–97 HTSUS classification
Report the 10% duty on HTSUS 9903.94.32
Report the line value on the Chapter 1–97 HTSUS code
Additional Considerations for Auto Parts:
Reciprocal Tariff Exemption: These auto parts are exempt from reciprocal tariffs under Executive Order 14257.
Use HTSUS 9903.01.33 to claim the exemption.
Tariff Non-Stacking: These entries are subject to non-stacking under Executive Order 14289 and Proclamation 10947.
Chapter 98 Claims: Claims under Chapter 98 are still permitted, but no overlapping duty reduction may be claimed under another Chapter 99 provision.
Example: Subheading 9802.00.60 duties apply to the full value of the article.
Foreign Trade Zones (FTZ)
UK-origin automotive parts that are not eligible for “domestic status” must be entered into U.S. FTZs under “privileged foreign status”, per 19 C.F.R. 146.41. These parts will be assessed duty upon withdrawal for consumption at the HTSUS 9903.94.32 rate.
No Drawback Eligibility
CBP confirms no duty drawback will be allowed for the 10% duty imposed under Executive Order 14309.
Civil Aircraft
Under HTSUS subheading 9903.96.01, effective June 30, 2025, CBP is providing duty-free or preferential treatment to civil aircraft goods of UK origin that:
Are classified under headings listed in Attachment 2
Meet General Note 6 (GN6) conditions
Are eligible under the WTO Agreement on Trade in Civil Aircraft, even where the “Special” subcolumn in the HTSUS does not specify “Free (C)”
Duty Treatment: Applicable column one HTSUS rate (which may be free under GN6)
Not Subject To:
Reciprocal Tariffs (Executive Order 14257)
Section 232 Aluminum Tariffs (Proclamation 9704)
Section 232 Steel Tariffs (Proclamation 9705)
Filing Note: Use Special Program Indicator “C” to claim eligibility under the Agreement on Trade in Civil Aircraft.
Broader Deal Terms and Next Steps
The U.S.-U.K. Economic Prosperity Deal, announced May 8, 2025, represents a wide-ranging effort to expand bilateral trade and improve national security cooperation. In addition to automotive and aerospace measures, the agreement outlines goals to improve U.K. market access for American beef, ethanol, and other agricultural products, and to reduce non-tariff barriers that have impacted U.S. exporters.
The agreement also sets the stage for future preferential treatment of British pharmaceuticals, contingent upon the results of an ongoing Section 232 investigation and U.K. compliance with U.S. supply chain security standards.
The U.S. Department of Commerce, in consultation with the International Trade Commission and Customs and Border Protection, is responsible for implementing the HTS modifications and issuing guidance necessary to carry out the new tariff arrangements. Businesses are advised to monitor the upcoming Federal Register notices to understand when the new tariff provisions officially take effect.
How GHY Can Help
GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.
By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.
Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.
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