Notice2026-09782
Amending the Procedures To Administer Import Adjustment Offset Amounts for Certain Imports of Automobile Parts Under Proclamation 10908 To Include Medium- and Heavy-Duty Vehicle Parts
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Published
May 15, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
On June 13, 2025, the International Trade Administration published a Notice titled "Procedures To Administer Import Adjustment Offset Amounts for Certain Imports of Automobile Parts Under Proclamation 10908, as Amended" (June 13 Notice), which established 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" to incentivize domestic automobile production and reduce American reliance on imports of foreign automobiles and their parts. This notice amends those procedures consistent with the amendments to Proclamation 10925 set forth in Presidential Proclamation 10984 of October 17, 2025, "Adjusting Imports of Medium- and Heavy-Duty Vehicles, Medium- and Heavy-Duty Vehicle Parts, and Buses Into the United States". This notice also amends those procedures to allow domestic manufacturers of Medium- and Heavy-Duty Vehicles (MHDV) to claim import adjustment offsets for imports of MHDV parts (MHDVPs) and automobile parts in a manner consistent with Proclamation 10984. The procedures exclude certain heavy-duty vehicle assembly operations determined to be "limited production operations" from being considered in the calculation of offsets, and notes that these procedures will be amended to exclude limited production operations for automobiles and medium- duty vehicles at a later date. This notice replaces the procedures set forth in ITA's June 13 Notice. The import adjustment offset process will be amended at a later date to establish an equivalent process for domestic manufacturers of automobile engines and MHDV engines, as provided for in Proclamation 10984.
Full Text
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<title>Federal Register, Volume 91 Issue 94 (Friday, May 15, 2026)</title>
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[Federal Register Volume 91, Number 94 (Friday, May 15, 2026)]
[Notices]
[Pages 27914-27918]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09782]
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DEPARTMENT OF COMMERCE
International Trade Administration
[Docket No. 260506-0125]
RIN 0625-XC060
Amending the Procedures To Administer Import Adjustment Offset
Amounts for Certain Imports of Automobile Parts Under Proclamation
10908 To Include Medium- and Heavy-Duty Vehicle Parts
AGENCY: International Trade Administration, U.S. Department of
Commerce.
ACTION: Notice.
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SUMMARY: On June 13, 2025, the International Trade Administration
published a Notice titled ``Procedures To Administer Import Adjustment
Offset Amounts for Certain Imports of Automobile Parts Under
Proclamation 10908, as Amended'' (June 13 Notice), which established
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'' to incentivize domestic
automobile production and reduce American reliance on imports of
foreign automobiles and their parts. This notice amends those
procedures consistent with the amendments to Proclamation 10925 set
forth in Presidential Proclamation 10984 of October 17, 2025,
``Adjusting Imports of Medium- and Heavy-Duty Vehicles, Medium- and
Heavy-Duty Vehicle Parts, and Buses Into the United States''. This
notice also amends those procedures to allow domestic manufacturers of
Medium- and Heavy-Duty Vehicles (MHDV) to claim import adjustment
offsets for imports of MHDV parts (MHDVPs) and automobile parts in a
manner consistent with Proclamation 10984. The procedures exclude
certain heavy-duty vehicle assembly operations determined to be
``limited production operations'' from being considered in the
calculation of offsets, and notes that these procedures will be amended
to exclude limited production operations for automobiles and medium-
duty vehicles at a later date. This notice replaces the procedures set
forth in ITA's June 13 Notice. The import adjustment offset process
will be amended at a later date to establish an equivalent process for
domestic manufacturers of automobile engines and MHDV engines, as
provided for in Proclamation 10984.
DATES: Applications from domestic manufacturers of MHDVs can be
submitted starting May 15, 2026. Domestic manufacturers of automobiles
may continue to submit applications at the address below.
ADDRESSES: Offset applications must be submitted electronically to:
<a href="/cdn-cgi/l/email-protection#19786c6d76767f7f6a7c6d596d6b787d7c377e766f"><span class="__cf_email__" data-cfemail="95f4e0e1fafaf3f3e6f0e1d5e1e7f4f1f0bbf2fae3">[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#92d7fffbfeebbcd6f3e4fbe1d2e6e0f3f6f7bcf5fde4"><span class="__cf_email__" data-cfemail="3b7e56525742157f5a4d52487b4f495a5f5e155c544d">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
On March 26, 2025, the President issued Proclamation 10908, finding
that imports of automobiles (defined as passenger vehicles (sedans,
sport utility vehicles, crossover utility vehicles, minivans, and cargo
vans) and light trucks) 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 of the Expansion Act of 1962,
as amended (19 U.S.C. 1862) (90 FR 14705). 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, which
allowed for automobile manufacturers 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 (90 FR 18899). Proclamation 10925 required
the Secretary of Commerce (Commerce) to establish a process by which
automobile manufacturers may submit documentation supporting
eligibility for an import adjustment offset amount. Commerce
established an import adjustment offset process through the June 13
Notice ``Procedures To Administer Import Adjustment Offset Amounts for
Certain Imports of
[[Page 27915]]
Automobile Parts Under Proclamation 10908, as Amended'' (90 FR 25027)
(Offset Process).
On October 17, 2025, the President issued Proclamation 10984,
finding that imports of MHDVs, certain MHDVPs, and buses threaten to
impair the national security of the United States and imposing
specified tariffs to adjust imports of MHDVs, certain MHDVPs, and buses
so that such imports will not threaten to impair national security, and
imposing a 25 percent tariff on certain imports of MHDVs and MHDVPs,
effective November 1, 2025 (90 FR 48451). Under Proclamation 10984,
buses and other vehicles classified in Harmonized Tariff Schedule of
the United States (HTSUS) heading 8702 are subject to a 10 percent
tariff. Given the ``close connections and overlap between part
suppliers'' for the automobile industry and the MHDV industry,
Proclamation 10984 also amends Proclamation 10925 to conform certain
aspects of the tariff system imposed by Proclamations 10908 and 10925
for automobiles and automobile parts to the tariff system imposed by
Proclamation 10984.
Proclamation 10984 allowed MHDV manufacturers assembling MHDVs in
the United States to apply for an import adjustment offset amount,
which would offset certain tariff liability under Proclamation 10984 on
imports of MHDVPs. Proclamation 10984 required Commerce to establish a
process by which MHDV manufacturers may submit documentation supporting
eligibility for an import adjustment offset amount. This notice amends
the Offset Process to allow domestic manufacturers of MHDVs to apply
for and receive import adjustment offsets, including application,
documentation, and certification requirements, eligibility conditions,
and coordination with U.S. Customs and Border Protection (CBP).
Commerce is still considering if and how the Offset Process should
apply to manufacturers based on bus production; no determination
regarding the availability of such offsets has yet been made. The
Offset Process procedures set forth in this notice replace the Offset
Process procedures set forth in the June 13 Notice.
Proclamation 10984 authorized Commerce to issue regulations and
guidance consistent with that proclamation, including to address
operational necessity. Commerce has determined that, in light of the
``close connections and overlap between part suppliers'' for the
automobile industry and the MHDV industry identified in Proclamation
10984, and the fact that the President found that conforming the tariff
systems between automobiles and MHDVs will more effectively address the
threat to national security found in Proclamations 10908 and 10984, it
is necessary to allow MHDV manufacturers assembling MHDVs in the United
States to apply for an import adjustment offset amount for automobile
parts as well as for MHDVPs, allowing them to offset tariff liability
under both Proclamation 10984 and Proclamation 10908. Similarly,
Commerce has determined that, in light of that close connection, it is
necessary to allow automobile manufacturers assembling automobiles in
the United States to apply for an import adjustment offset amount for
MHDVPs as well as for automobile parts, allowing them to offset tariff
liability under both Proclamation 10908 and Proclamation 10984.
Proclamation 10984 also provides Commerce with the authority to
prohibit MHDV manufacturers from using offset amounts for imports of
products where offsets would be inconsistent with addressing the threat
to the national security found in that Proclamation. Through
Proclamation 10984, for MHDV, the President sought to strengthen supply
chains, bolster industrial resilience, create high-quality jobs that
will expand the skilled workforce in the United States, and increase
domestic capacity utilization and U.S. MHDV market share. Similarly,
for automobiles, Proclamation 10925 expressed the goals of reducing
reliance on foreign manufacturing and importation of automobiles and
automobile parts, strengthening U.S. vehicle assembly operations,
shifting manufacturing activity into the United States, creating jobs
in the automotive industry, and ensuring that other benefits of
production are concentrated in the United States.
In light of these goals, Commerce found that it is appropriate to
exclude assembly operations determined to be ``limited production
operations'' from being considered in the calculation of offsets.
Commerce also found that what should be determined to be ``limited
production operations'' should be determined in light of the
manufacturing processes for that particular class of vehicles.
With respect to heavy-duty vehicles (vehicles in Classes 7 and 8,
as defined in 49 CFR 565.15), Commerce has determined that production
operations in the United States that rely on imported chassis, chassis
gliders, chassis with engine, or engines, should be considered to be
limited production operations. Heavy-duty vehicles are large enough to
allow for separate components to be fully assembled elsewhere,
imported, and bolted together to make a finished heavy-duty vehicle,
and this type of limited production operation does not forward the
national security goals of Proclamation 10984. Therefore, heavy-duty
vehicle production that includes incorporating an imported chassis,
chassis glider, chassis with engine, or engine in the vehicle, is not
eligible for offsets under the Offset Process.
Commerce is not applying this definition of limited production
operations to automobiles (including light-duty trucks classifiable in
the HTSUS subheadings listed in Part A of Annex I to Proclamation
10908) and medium-duty vehicles (Classes 3, 4, 5, and 6 as defined in
49 CFR 565.15) vehicles because of the significant differences in the
manufacturing operations between those vehicles and heavy-duty vehicles
(Class 7 and 8); manufacturing operations for these different classes
of vehicles are fundamentally different. Processes differ in terms of
scale of production, number and type of significant components sourced
from outside parties, type of assembly activity conducted and the state
of the vehicles when they leave the production line. Because of these
differences, it is appropriate to limit the determination above
regarding what should be considered ``limited production operations''
to heavy-duty vehicles.
Commerce is not restricting offsets for automobiles and medium-duty
vehicles on the basis of ``limited production operations'' at this time
as Commerce is still considering what assembly operations for these
vehicles should be considered to be ``limited production operations.''
Commerce will further consider this issue and amend the Offset Process
at a later date once it makes a determination. As part of this
consideration, Commerce will review information submitted with offset
applications with respect to current vehicle assembly operations in the
United States.
Section 3 of Proclamation 10925 states that Commerce, ``in
consultation with the Secretary of the Treasury and the Commissioner of
CBP, shall issue such regulations, guidance, and procedures as
necessary to carry out the provisions of this proclamation and
Proclamation 10908, and may establish standards for . . . validating
manufacturer certifications.'' To validate MHDV and automobile
manufacturer certifications used to calculate offsets provided in
preceding years, the Secretary has determined that
[[Page 27916]]
it is necessary for U.S. manufacturers to provide details on their
production, including vehicles produced and the value of those vehicles
produced, from any preceding year in which they claimed an offset.
Should an applicant produce fewer vehicles or produce vehicles at a
lower value than projected in information provided to Commerce in
previous Offset Process applications, Commerce may adjust the following
year's offset amount accordingly.
Proclamation 10984 also requires Commerce to establish an offset
process for MHDV engine manufacturers and an offset process for
automobile engine manufacturers equivalent to the processes for
manufacturers of MHDVs and automobiles. Commerce will publish a Federal
Register notice amending the Offset Process to allow such offsets at a
later date. In light of these separate offsets, Commerce has determined
that the cost of engines incorporated into an automobile or MHDV should
not be included in the calculation of the aggregate value of MHDVs or
automobiles assembled in the United States by a manufacturer.
II. Application Process
A. Import Adjustment Offset Amount Structure and Duration
Proclamation 10984 provides that MHDV manufacturers are eligible
for an import adjustment offset amount equal to 3.75 percent of the
aggregate value of all MHDVs assembled in the United States by that
manufacturer, as determined annually by Commerce, from November 1,
2025, through October 31, 2030. The relevant annual periods are:
<bullet> MHDVs assembled between November 1, 2025, and October 31,
2026;
<bullet> MHDVs assembled between November 1, 2026, and October 31,
2027;
<bullet> MHDVs assembled between November 1, 2027, and October 31,
2028;
<bullet> MHDVs assembled between November 1, 2028, and October 31,
2029; and
<bullet> MHDVs assembled between November 1, 2029, and October 31,
2030.
Proclamation 10984 also provides that automobile manufacturers are
eligible for an import adjustment offset equal to 3.75 percent of the
aggregate Manufacturer's Suggested Retail Price (MSRP) of all
automobiles assembled in the United States by that manufacturer, as
determined annually by Commerce, from April 5, 2025, through April 30,
2030. The relevant annual periods are:
<bullet> Automobiles assembled between April 5, 2025 and April 30,
2026;
<bullet> Automobiles assembled between May 1, 2026, and April 30,
2027;
<bullet> Automobiles assembled between May 1, 2027, and April 30,
2028;
<bullet> Automobiles assembled between May 1, 2028, and April 30,
2029; and
<bullet> Automobiles assembled between May 1, 2029, and April 30,
2030.
Import adjustment offset amounts may be used by MHDV manufacturers
to reduce tariffs on MHDVPs provided for in Proclamation 10984 or
tariffs on automobile parts provided for in Proclamation 10908, as
amended, and may be carried forward indefinitely until fully exhausted,
provided they were granted based on qualifying MHDVs assembled between
November 1, 2025 and October 31, 2030. Similarly, import adjustment
offset amounts may be used by automobile manufacturers to reduce
tariffs on MHDVPs provided for in Proclamation 10984 or tariffs on
automobile parts provided for in Proclamation 10908, and may be carried
forward indefinitely until fully exhausted, provided they were granted
based on qualifying automobiles assembled between April 5, 2025 and
April 30, 2030.
For purposes of this notice:
<bullet> ``MHDVPs'' means the articles subject to duties under
Proclamation 10984 and classified under the subheadings of the
Harmonized Tariff Schedule of the United States (HTSUS) that were
established by Proclamation 10984 in U.S. note 38(i) of subchapter III
of chapter 99 of the HTSUS, or goods entered under a tariff heading
subject to Proclamation 10984, based on a certification by the importer
of record that such parts will be used for MHDV production or repair
activity in the United States.
<bullet> ``Automobile parts'' means the articles subject to duties
under Proclamation 10908 and classified under the subheadings of the
HTSUS that were established by that proclamation, in U.S. note 33(g) of
the HTSUS, or goods entered under a tariff heading subject to
Proclamation 10908, as amended, based on the appropriate certification
by the importer of record that such parts will be used in automobile
production or repair activity in the United States.
<bullet> ``MHDV'' means articles that would be subject to duties
under Proclamation 10984 and classified under the subheadings of the
HTSUS that were established by that proclamation in U.S. note 38(b) of
subchapter III of chapter 99 of the HTSUS. This definition includes
both ``medium-duty vehicles'' and ``heavy-duty vehicles,'' as described
below.
<bullet> ``Medium-duty vehicle'' means a subcategory of MHDVs
classified in Class 3 through Class 6 as defined in 49 CFR 565.15 with
a gross vehicle weight of 10,001 pounds to 26,000 pounds.
<bullet> ``Heavy-duty vehicle'' means a subcategory of MHDVs
classified in Class 7 and 8 as defined in 49 CFR 565.15 with a gross
vehicle weight of 26,001 pounds and above.
<bullet> ``Automobile'' means articles that would be subject to
duties under Proclamation 10908 and classified under the subheadings of
the HTSUS that were established by that proclamation in U.S. note 33(b)
of subchapter III of chapter 99 of the HTSUS. This definition includes
light-duty trucks classifiable in the HTSUS subheadings listed in Part
A of Annex I to Proclamation 10908 with a gross vehicle weight under
10,000 pounds.
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. For MHDV manufacturers, this
requires submission of one set of documentation for the period of
November 1, 2025 through October 31, 2026; and separate sets of
documentation for each of the periods of November 1, 2026 through
October 31, 2027; November 1, 2027 through October 31, 2028; November
1, 2028 through October 31, 2029; and November 1, 2029 through October
31, 2030. For automobile manufacturers, this requires submission of one
set of documentation for each period of April 5, 2025 through April 30,
2026; May 1, 2026 through April 30, 2027; May 1, 2027 through April 30,
2028; May 1, 2028 through April 30, 2029; and May 1, 2029 through April
30, 2030.
Automobile manufacturers that have already submitted documentation
covering April 5, 2025 through April 30, 2026 are not required to
submit a revised offset application. However, automobile manufacturers
who have already submitted documentation covering periods from May 1,
2026 and onward must resubmit documentation, given changes to the
Offset Process.
1. Production Forecast:
a. For MHDVs: The number of completed MHDVs projected to be
produced in the United States by make and model and the plant locations
where the projected MHDVs will undergo final production during each
reporting period. MHDV manufacturers shall also describe the U.S.
manufacturing activities for each model
[[Page 27917]]
at each plant location. For heavy-duty vehicles, the manufacturer's
production forecast shall not include models where production includes
the incorporation of an imported chassis, chassis glider, chassis with
engine, or engine. Manufacturers of medium-duty vehicles must provide
the gross weight of the vehicle they seek to include in their
production forecast, and may include in their production forecast
operations that include the incorporation of an imported chassis,
chassis glider, chassis with engine, or engine for the identified
medium-duty vehicle; however, manufacturers of medium-duty vehicles
must still report U.S. manufacturing activities for each model at each
plant location, including the location where each part identified as
super-core and listed in Column 1 of Table A.2 of the Appendix to
Chapter 4 of the U.S.-Mexico-Canada Agreement (USMCA) is incorporated
into the finished medium-duty vehicle, and the country of origin for
each part. Manufacturers of MHDVs that rely on third parties to conduct
final vehicle upfitting of MHDVs in order to produce specialty
vocational MHDVs may report the projected number of MHDVs to be
produced in the United States prior to the third party upfitting the
MHDV into a specialty vocational MHDV, so long as the MHDV manufacturer
relied on such third party upfitters in the ordinary course of trade
prior to November 1, 2025. Third parties that do not assemble MHDVs but
instead procure MHDVs from MHDV manufacturers and conduct final vehicle
upfitting of MHDVs in order to produce specialty vocational MHDVs are
not eligible to receive offsets under the Offset Process.
b. For Automobiles: The number of automobiles 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. Automobile manufacturers shall also describe the
U.S. manufacturing activities for each model at each plant location,
including the location where each part identified as super-core and
listed in Table A.2 of the Appendix to Chapter 4 of the USMCA is
incorporated into the finished automobile and the country of origin for
each part.
2. Vehicle Value:
a. For MHDVs: The aggregate value of all such MHDVs identified in
the Production Forecast as eligible for an offset assembled in the
United States during each reporting period. The aggregate value shall
not include the cost (if purchased from a third party) or value (if
manufactured by the MHDV producer) of the engine contained in the MHDV;
manufacturers must calculate the aggregate value using whichever of the
following three valuation methods they used in the ordinary course of
trade prior to November 1, 2025: MSRP, Dealer Net Cost, or Factory List
Price. In calculating the cost of an engine purchased from a third
party, manufacturers should use the price paid on the sale from the
engine manufacturer to the MHDV manufacturer. In calculating the value
of an engine that was not purchased from a third party, manufacturers
should use a methodology consistent with the method for calculating net
cost set out in Chapter 4 of the USMCA.
b. For Automobiles: The aggregate MSRP value of all such
automobiles identified in the Production Forecast as eligible for an
offset assembled in the United States during each reporting period. For
documentation covering production forecasts for May 1, 2026 and later,
manufacturers must deduct the cost (if purchased from a third party) or
value (if manufactured by the automobile producer) of the engine
contained in the automobile from this MSRP value. In calculating the
cost of the engine purchased from a third party, manufacturers should
use the price paid on the sale from the engine manufacturer to the
automobile manufacturer. In calculating the value of the engine,
manufacturers should determine value using the net cost methodology set
forth in Chapter 4 of the USMCA. Manufacturers are not required to
deduct the cost or value of the automobile engine for documentation
covering the April 5, 2025 through April 30, 2026 period.
3. Prior Year Production and Vehicle Value:
a. For MHDVs: If a manufacturer received an offset in the previous
year, the manufacturer must provide the number of completed MHDVs
produced in the United States in the previous reporting period, the
aggregate value of those MHDVs, and a description of the U.S.
manufacturing activities for each model at each plant location. In
providing these figures, manufacturers must use the eligibility
considerations and vehicle value methodology used in the prior year's
application.
b. For Automobiles: If a manufacturer received an offset in the
previous year, the manufacturer must provide the number of automobiles
produced in the United States in the previous reporting period and the
aggregate MSRP value of those automobiles. In providing these figures,
manufacturers must use the same production calculation and vehicle
value methodology used in the prior year's application.
4. Tariff Liability Estimate:
a. For MHDVs: Projected MHDV and MHDVPs tariff liability under
clauses 1, 7, and 12 of Proclamation 10984, broken down by Proclamation
10984 tariff costs the manufacturer will incur directly and
Proclamation 10984 tariff costs the manufacturer's suppliers will
incur. These estimates should not include the tariff liability for MHDV
engines or parts used in the manufacture of MHDV engines.
b. For Automobiles: Projected automobiles and automobile parts
tariff liability under Proclamation 10908 or under clause 12 of
Proclamation 10984, broken down by tariff costs the manufacturer will
incur directly and tariff costs the manufacturer's suppliers will
incur. These estimates should not include the tariff liability for
automobile engines or parts used in the manufacture of automobile
engines.
5. Offset Calculation:
a. For MHDVs and Automobiles: Requested total import adjustment
offset amount for each reporting period, including details of how such
amount was calculated.
6. Importers of Record:
a. For MHDV manufacturers and Automobile manufacturers: 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#f49581809b9b9292879180b48086959091da939b82"><span class="__cf_email__" data-cfemail="c9a8bcbda6a6afafbaacbd89bdbba8adace7aea6bf">[email protected]</span></a>. At its discretion, Commerce may update this list
at other times during the duration of the Offset Process.
7. Certification:
a. For MHDVs and Automobiles: 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.
8. Additional Information:
a. For MHDVs and Automobiles: 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 supplemental documentation or clarification. Approved
manufacturers will be notified in writing of approval and amount of
offset granted, and
[[Page 27918]]
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.
D. Usage and Enforcement
Import Adjustment Offset amounts claimed at time of entry for both
MHDVs and Automobiles:
<bullet> May be used only by approved importers associated with the
approved manufacturer;
<bullet> May be applied only to reduce tariff liability incurred
under clauses 1, 7, or 12 of Proclamation 10984 or Proclamation 10908
on eligible MHDV or automobile parts;
<bullet> May not exceed the manufacturer's total tariff liability
on covered MHDVPs and automobile 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.
F. Amendments to Harmonized Tariff Schedule
Under Proclamation 10984, Commerce, in consultation with the United
States International Trade Commission and CBP, shall determine the
modifications necessary to the HTSUS to effectuate that 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 November 1, 2025:
Subdivision (i) of U.S. note 38 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 10984 of October 17, 2025 (90 FR 48451),
the rates of duty set forth in heading 9903.74.08 applies to parts of
medium- and heavy-duty vehicles classifiable in the provisions of the
HTSUS enumerated in this subdivision:''
III. Paperwork Reduction Act Public Burden Statement
A Federal agency may not conduct or sponsor, and a person is not
required to respond to, nor shall a person be subject to a penalty for
failure to comply with an information collection subject to the
requirements of the Paperwork Reduction Act of 1995 unless the
information collection has a currently valid OMB Control Number. The
approved OMB Control Number for this information collection is 0690-
0283. Without this approval, we could not conduct this information
collection. Public reporting for this information collection is
estimated to be approximately 40 hours per response, including the time
for reviewing instructions, searching existing data sources, gathering
and maintaining the data needed, and completing and reviewing the
information collection. The estimated burden hours are within the
approved burden hour limits of this control number. All responses to
this information collection are voluntary. Send comments regarding this
burden estimate or any other aspect of this information collection,
including suggestions for reducing this burden to the International
Trade Administration Paperwork Reduction Act Program: <a href="/cdn-cgi/l/email-protection#d181839091a5a3b0b5b4ffb6bea7"><span class="__cf_email__" data-cfemail="643436252410160500014a030b12">[email protected]</span></a>.
William Kimmitt,
Under Secretary for International Trade, United States Department of
Commerce.
[FR Doc. 2026-09782 Filed 5-14-26; 8:45 am]
BILLING CODE 3510-DR-P
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