Parts Tariff Offset Program for Motor Vehicles

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 motor vehicles and certain motor vehicle parts continue to threaten to impair the national security of the United States and imposing specified tariffs to adjust imports of motor vehicles and certain motor vehicle parts so that such imports will not threaten to impair national security pursuant to Section 232 of the Trade Expansion Act of 1962 (“Section 232”). Section 232 authorizes the President to adjust the imports of an article and its derivatives that are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security of the United States so that such imports will not threaten to impair national security. Proclamation 10908 imposed a 25 percent tariff on certain imports of motor vehicles, effective April 3, 2025, and certain imports of motor vehicle parts, effective May 3, 2025. On April 29, 2025, the President issued Proclamation 10925 (90 FR 18899), which allowed for motor vehicle manufactures assembling motor vehicles in the United States to apply for an import adjustment offset amount, which would offset certain tariff liability under Proclamation 10908 on imports of motor vehicle parts. Proclamation 10925 required that within 30 days of the date of the order the Secretary of the Department of Commerce (Commerce) shall establish a process by which motor vehicle manufacturers could submit documentation supporting eligibility and a claim for an import adjustment offset amount. A prepared 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). 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” (90 FR 25027), which established procedures for motor vehicle manufacturers to apply for and use the import adjustment offset amount established by Presidential Proclamation 10925 of April 29, 2025 (90 FR 18899), “Amendments to Adjusting Imports of Automobiles and Automobile Parts Into the United States” (Proclamation 10925) to incentivize domestic motor vehicle production and reduce American reliance on imports of foreign motor vehicles and their parts. 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,” (Proclamation 10984) took similar action to address the threat imports of Medium- and Heavy-Duty Vehicles (MHDV) and Medium- and Heavy-Duty Vehicle Parts (MHDVPs) pose to the national security of the United States; that Proclamation also amended the offset rules established by Proclamation 10925. Through this Offset Program motor vehicle manufacturers with final production in the United States have the opportunity to submit documentation to request an import adjustment offset amount for motor vehicles and motor vehicle parts. The import adjustment offset 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 motor vehicle parts tariff liability under Proclamation 10908 or Proclamation 10984 and any future related Proclamations. The emergency revision request for this collection is driven by Presidential directives that address urgent national security concerns, as the President has determined imports of motor vehicles and motor vehicle parts threaten U.S. national security. Timely implementation of this process is critical to addressing this threat.

The latest form for Parts Tariff Offset Program for Motor Vehicles expires 2026-11-30 and can be found here.