Notice2025-10740
Procedures To Administer Import Adjustment Offset Amounts for Certain Imports of Automobile Parts Under Proclamation 10908, as Amended
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Published
June 13, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
This notice announces the procedures for automobile manufacturers to apply for and use the import adjustment offset amount established by Presidential Proclamation 10925 of April 29, 2025, "Amendments to Adjusting Imports of Automobiles and Automobile Parts Into the United States," (Proclamation 10925) to incentivize domestic automobile production and reduce American reliance on imports of foreign automobiles and their parts. Eligibility for the import adjustment offset amount is based on domestic final assembly of automobiles during an approximately two-year period. Import adjustment offset amounts awarded for qualifying automobiles assembled between April 3, 2025, and April 30, 2027, may be carried forward beyond that period until the full approved import adjustment offset amount is exhausted. No new import adjustment offset amounts will be granted for automobiles assembled after April 30, 2027. The intent of this program is to strengthen the U.S. automobile assembly operation capabilities and ensure national security objectives are met by reducing reliance on foreign automobile production and parts sourcing.
Full Text
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<title>Federal Register, Volume 90 Issue 113 (Friday, June 13, 2025)</title>
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[Federal Register Volume 90, Number 113 (Friday, June 13, 2025)]
[Notices]
[Pages 25027-25030]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-10740]
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DEPARTMENT OF COMMERCE
International Trade Administration
[Docket No. 250609-0096]
RIN 0625-XC055
Procedures To Administer Import Adjustment Offset Amounts for
Certain Imports of Automobile Parts Under Proclamation 10908, as
Amended
AGENCY: International Trade Administration, U.S. Department of
Commerce.
ACTION: Notice.
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SUMMARY: This notice announces the procedures for automobile
manufacturers to apply for and use the import adjustment offset amount
established by Presidential Proclamation 10925 of April 29, 2025,
``Amendments to Adjusting Imports of Automobiles and Automobile Parts
Into the United States,'' (Proclamation 10925) to incentivize domestic
automobile production and reduce American reliance on imports of
foreign automobiles and their parts. Eligibility for the import
adjustment offset amount is based on domestic final assembly of
automobiles during an approximately two-year period. Import adjustment
offset amounts awarded for qualifying automobiles assembled between
April 3, 2025, and April 30, 2027, may be carried forward beyond that
period until the full approved import adjustment offset amount is
exhausted. No new import adjustment offset amounts will be granted for
automobiles assembled after April 30, 2027. The intent of this program
is to strengthen the U.S. automobile assembly operation capabilities
and ensure national security objectives are met by reducing reliance on
foreign automobile production and parts sourcing.
[[Page 25028]]
DATES: Applications can be submitted starting June 13, 2025.
ADDRESSES: Applications must be submitted electronically to:
<a href="/cdn-cgi/l/email-protection#96f7e3e2f9f9f0f0e5f3e2d6e2e4f7f2f3b8f1f9e0"><span class="__cf_email__" data-cfemail="127367667d7d74746177665266607376773c757d64">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Emily Davis, Director for Public
Affairs, International Trade Administration, U.S. Department of
Commerce, 202-482-3809, <a href="/cdn-cgi/l/email-protection#ca8fa7a3a6b3e48eabbca3b98abeb8abaeafe4ada5bc"><span class="__cf_email__" data-cfemail="d095bdb9bca9fe94b1a6b9a390a4a2b1b4b5feb7bfa6">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
On March 26, 2025, the President issued Proclamation 10908 (90 FR
14705), ``Adjusting Imports of Automobiles and Automobile Parts Into
the United States,'' (Proclamation 10908) finding that imports of
automobiles and certain automobile parts continue to threaten to impair
the national security of the United States and imposing specified
tariffs to adjust imports of automobiles and certain automobile parts
so that such imports will not threaten to impair national security
pursuant to Section 232. Proclamation 10908 imposed a 25 percent tariff
on certain imports of automobiles, effective April 3, 2025, and certain
imports of automobile parts, effective May 3, 2025.
On April 29, 2025, the President issued Proclamation 10925 (90 FR
18899), which allowed for automobile manufactures assembling
automobiles in the United States to apply for an import adjustment
offset amount, which would offset certain tariff liability under
Proclamation 10908 on imports of automobile parts. Proclamation 10925
required the Secretary of the Department of Commerce (Commerce) to
establish a process by which automobile manufacturers could submit
documentation supporting eligibility for an import adjustment offset
amount. This notice announces procedures for administration of the
import adjustment offset amount program, including application,
documentation, and certification requirements, eligibility conditions,
and coordination with U.S. Customs and Border Protection (CBP).
II. Application Process
A. Import Adjustment Offset Amount Structure and Duration
Proclamation 10925 provides that automobile manufacturers are
eligible for an import adjustment offset amount calculated as a
percentage of the aggregate Manufacturer's Suggested Retail Price
(MSRP) value of automobiles assembled in the United States, as follows:
<bullet> 3.75% of aggregate MSRP for eligible automobiles assembled
between April 3, 2025, and April 30, 2026; and
<bullet> 2.5% of aggregate MSRP for eligible automobiles assembled
between May 1, 2026, and April 30, 2027.
Import adjustment offset amounts may be used to reduce Section 232
tariffs on automobile parts and may be carried forward indefinitely
until fully exhausted, provided they were granted based on qualifying
automobiles assembled between April 3, 2025 and April 30, 2027. While
Proclamation 10925 limits the import adjustment offset to vehicles
assembled in the United States between April 3, 2025 and April 30,
2027, it does not include a deadline for use of the offset amount, and
providing manufacturers flexibility in this regard is consistent with
the Proclamation's goals (which include to ``strengthen United States
vehicle assembly operations by encouraging companies to expand domestic
production capacity, which is critical to a strong domestic defense
industrial base'' (Proclamation 10925 preamble, Section 7)) and with
the flexibilities the Proclamation expressly provides to manufacturers
(e.g., to determine the importer of record eligible to decrement
against that manufacturer's import adjustment offset amount
(Proclamation 10925, Section 1)). Section 3 of Proclamation 10925
provides that the Secretary shall issue regulations, guidance, or
procedures necessary to carry out the provisions of the Proclamation,
and the Department has determined that such flexibility is necessary to
effectively carry out the Proclamation. This notice establishes that no
offset amounts will be granted for automobiles assembled after April
30, 2027.
For purposes of this notice, ``automobile parts'' means the
articles classified under the subheadings of the Harmonized Tariff
Schedule of the United States (HTSUS) that were made subject to Section
232 duties pursuant to section B of the Annex to Proclamation 10908,
and any amendments thereto.
B. Application Requirements
Manufacturers seeking an import adjustment offset amount must
submit the following documentation for each period for which an import
adjustment offset amount is sought (i.e., one set of documentation for
the period of April 3, 2025 through April 30, 2026; and a separate set
of documentation for the period of May 1, 2026 through April 30, 2027):
1. Production Forecast: The number of automobiles (i.e., passenger
vehicles (sedans, sport utility vehicles, crossover utility vehicles,
minivans, and cargo vans) and light trucks) projected to be produced in
the United States by make and model and the plant locations where the
projected automobiles will undergo final production during each
reporting period.
2. MSRP: The aggregate MSRP value of all such automobiles assembled
in the United States during each reporting period.
3. Tariff Liability Estimate: Projected automobiles and automobile
parts tariff liability under Proclamation 10908, broken down by
Proclamation 10908 tariff costs the manufacturer will incur directly
and Proclamation 10908 tariff costs the manufacturer's suppliers will
incur.
4. Offset Calculation: Requested total import adjustment offset
amount for each reporting period, including details of how such amount
was calculated.
5. Importers of Record: A list of authorized importers of record
eligible to decrement against the manufacturer's import adjustment
offset amount. This list must include the importer's Importer of Record
number and the amount of the import adjustment offset amount allotted
to each importer of record. Updates to this list may be submitted
electronically to Commerce at <a href="/cdn-cgi/l/email-protection#d9b8acadb6b6bfbfaabcad99adabb8bdbcf7beb6af"><span class="__cf_email__" data-cfemail="2e4f5b5a414148485d4b5a6e5a5c4f4a4b00494158">[email protected]</span></a>. Commerce will
inform CBP of list updates on December 1, 2025; June 1, 2026; and
December 1, 2026. At its discretion, Commerce may update this list at
other times during the program period.
6. Certification: A sworn statement from a senior officer of the
manufacturer confirming that the submission is true, accurate, and
complete to the best of the manufacturer's knowledge under penalty of
perjury, and confirming that the manufacturer has conducted reasonable
diligence to verify the accuracy of the assertions and facts contained
in its submissions.
7. Additional Information: Any other information the applicant
feels is necessary to facilitate decision making.
C. Review and Approval Process
Commerce will review applications for completeness. Commerce may
request, in writing, supplemental documentation or clarification.
Approved manufacturers will be notified in writing of approval and
amount of offset granted, and relevant import adjustment offset amount
data, including amounts and importer of record numbers, will be
transmitted by Commerce to CBP. CBP will administer the offset at the
time of entry summary filing and may request additional documentation
to validate entries.
[[Page 25029]]
D. Usage and Enforcement
Import Adjustment Offset amounts:
<bullet> May be used only by approved importers associated with the
approved manufacturer;
<bullet> May be applied only to reduce tariff liability under
Proclamation 10908 on eligible automobile parts;
<bullet> May not exceed the manufacturer's total tariff liability
on covered parts; and
<bullet> May not be traded, sold, or transferred.
E. Oversight and Adjustments
Commerce will monitor manufacturer and importer compliance and
communicate information regarding noncompliance to CBP, where
appropriate. CBP may exercise its authority to conduct audits to ensure
compliance with this regulation. If it is determined that inaccurate,
incomplete, or false information, has been submitted, penalties may be
imposed.
Under Proclamation 10908, Commerce, in consultation with the United
States International Trade Commission and CBP, shall determine the
modifications necessary to the HTSUS to effectuate this proclamation
and shall make such modifications to the HTSUS through notice in the
Federal Register. The HTSUS is modified as set forth below.
Effective with respect to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern daylight time on May 3, 2025:
Subdivision (g) of U.S. note 33 to subchapter III of chapter 99 of
the HTSUS is modified by deleting the first paragraph, and inserting
the following in lieu thereof: ``Subject to a manufacturer's import
adjustment offset amount that may be determined by the Secretary of
Commerce under Proclamation 10925 of April 29, 2025 (90 FR 18899), the
rates of duty set forth in heading 9903.94.05 applies to parts of
passenger vehicles (sedans, sport utility vehicles, crossover utility
vehicles, minivans, and cargo vans) and light trucks classifiable in
the provisions of the HTSUS enumerated in this subdivision: ''
III. Paperwork Reduction Act
In accordance with section 3507(d) of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), and the Office of Management and
Budget (OMB) implementing regulations at 5 CFR 1320.13, ITA is
requesting emergency processing for this information collection. In
Proclamation 10925 of April 29, 2025, ``Amendments to Adjusting Imports
of Automobiles and Automobile Parts Into the United States,'' the
President determined it was necessary and appropriate to modify the
system of monetary fees and related measures imposed to adjust imports
of automobiles and certain automobile parts pursuant to Proclamation
10908 to more effectively eliminate the threat imports of automobiles
and certain automobile parts pose on the national security of the
United States. Proclamation 10925 provided that for automobiles
assembled in the United States, automobile manufacturers shall be
eligible to receive an import adjustment offset amount applicable to
section 232 duties on automobile parts by reducing duties assessed on
automobile parts accounting for 15 percent of the value of an
automobile assembled in the United States for an opening period and
equivalent to 10 percent of that value for an additional year after the
initial period closes. Because the Proclamation requires timely
implementation of the offset mechanism to support domestic automobile
production and reduce the national security risk posed by automobile
part imports, ITA cannot reasonably comply with the normal clearance
procedures. Delaying this collection would impede the ability of
manufacturers to claim offset amounts and compromise the effectiveness
of the Proclamation's implementation. Therefore, ITA is requesting
emergency PRA processing under 5 CFR 1320.13 to initiate this process
without delay.
With the publication of the notice, ITA is requesting an emergency
approval to meet the requirements of Proclamation 10925. ITA is also
announcing a process for automobile manufacturers with final production
in the United States to submit documentation to request an import
adjustment offset amount that may only be used by importers of record
authorized by that manufacturer, and the amount may only be used to
offset tariff liability related to that manufacturer's automobile parts
tariff liability under Proclamation 10908. ITA estimates the burden to
the public for this notification will average 2,400 hours (30
respondents * 40 hours per response *2 expected responses per year),
including the time for reviewing instructions, searching existing data
sources, gathering the data needed, and completing and reviewing the
collection of information. The estimated total annual cost to the
Federal Government is $111,600.
The public may access this ITA request, including all supporting
materials, at <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a> and inserting the OMB
control number [0625-0283] or the name of the collection. Please send
written comments to Emily Davis, Director for Public Affairs, 202-482-
3809, <a href="/cdn-cgi/l/email-protection#4f0a22262336610b2e39263c0f3b3d2e2b2a61282039"><span class="__cf_email__" data-cfemail="195c74707560375d786f706a596d6b787d7c377e766f">[email protected]</span></a>. A comment to OMB is best assured of having
its full effect if OMB receives it within 60 days of publication of
this notice. All written comments submitted in response to this notice
will be included in the record and will be made available to the
public. Please be advised that the substance of the comments and the
identity of the individuals or entities submitting the comments will be
subject to public disclosure. Written comments will be publicly
available on the internet via <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
We are soliciting comments from the public (as well as affected
agencies) concerning our information collection and recordkeeping
requirements. These comments will help us:
(1) Evaluate whether the information collection is necessary for
the proper performance of our agency's functions, including whether the
information will have practical utility.
(2) Evaluate the accuracy of our estimate of the burden of the
information collection, including the validity of the methodology and
assumptions used.
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the information collection on those who
are to respond (such as through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses).
Estimate of burden: Public reporting burden for this collection of
information is estimated to average 40 hours per response.
Respondents: Private Sector.
Estimated annual number of respondents: 30.
Estimated annual number of responses per respondent: 2.
Estimated annual number of responses: 60.
Estimated total annual burden on respondents: 2,400.
(Due to averaging, the total annual burden hours may not equal the
product of the annual number of responses multiplied by the reporting
burden per response).
Copies of this information collection can be obtained from Emily
Davis, Director for Public Affairs, 202-482-3809,
<a href="/cdn-cgi/l/email-protection#397c54505540177d584f504a794d4b585d5c175e564f"><span class="__cf_email__" data-cfemail="fbbe96929782d5bf9a8d9288bb8f899a9f9ed59c948d">[email protected]</span></a>.
Notwithstanding any other provision of law, no person is required
to respond
[[Page 25030]]
to, nor is subject to a penalty for failure to comply with, a
collection of information, subject to the requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless that
collection of information displays a currently valid OMB Control
Number.
Trevor Kellogg,
Performing the Non-Exclusive Functions and Duties of the Under
Secretary for International Trade, Chief of Staff and Senior Advisor,
Office of the Under Secretary, International Trade Administration,
Commerce Department.
[FR Doc. 2025-10740 Filed 6-12-25; 8:45 am]
BILLING CODE 3510-DR-P
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