On June 30, 2025, the U.S. Department of Commerce published in the Federal Register a notice to modify the Harmonized Tariff Schedule of the United States (HTSUS) to conform with General Terms of the United States of America-United Kingdom Economic Prosperity Deal) (Executive Order 14309) with respect to automobiles, automobile parts, civil aircraft and civil aircraft parts from the United Kingdom.
On June 27, 2025, CBP issued CSMS Message #65475725, providing guidance for those filing entries of imports of automobile parts and civil aircraft products according to the General Terms of United States of America-United Kingdom of Great Britain and Northern Ireland Economic Prosperity Deal under Executive Order 14309, published June 16, 2025. The U.S.-U.K. trade deal includes a tariff-rate quota on U.K. automobiles, preferential tariff treatment for U.K. automobile parts, and preferential treatment for U.K. products under the World Trade Organization Agreement on Trade in Civil Aircraft.
Automobiles
Effective on or after 12:01 a.m. eastern time on June 30, 2025, the aggregate annual import volume under the tariff rate quota for calendar year 2025 will be limited to 65,205 passenger vehicles. Beginning on January 1, 2026, and annually thereafter, the aggregate annual import volume under the tariff-rate quota will be limited to 100,000 passenger vehicles per year.
No shipments of such passenger vehicles that are products of the United Kingdom will be allowed to enter in an aggregate quantity under the tariff-rate quota, during any of the periods January through March, April through June, July through September, or October through December in any 12-month period that is in excess of 25,000 passenger vehicles, except to the extent of any unused quantity carried forward from a prior quarter. U.S. Customs and Border Protection will carry forward any unused quantity of such passenger vehicles that are products of the United Kingdom from the first quarter of any calendar year to the third quarter of such year, and shall carryforward any unused quantity from the second quarter of any calendar year to the fourth quarter of such year. The 100,000 passenger vehicle per year tariff rate quota will recommence on January 1 of each year. Articles entered in excess of these quantities are subject to all applicable tariffs.
Auto Parts
For automobile parts, CBP specifies that from June 30, 2025, parts of passenger vehicles and light trucks from the UK are subject to a 10% tariff under HTSUS 9903.94.32. These parts are exempt from reciprocal tariffs under Executive Order 14257 and are subject to non-stacking provisions under Executive Order 14289. Drawback is not available.
Civil Aircraft
Effective June 30, 2025, articles including engines, parts, and components from the U.K. are eligible for duty-free treatment under HTSUS 9903.96.01, provided that they meet the criteria of General Note 6 of the HTSUS. These products are not subject to tariffs imposed by Executive Order 14257 and Proclamations 9704 and 9705. Importers should continue to use Special Program Indicator “C” to claim preferential treatment.
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