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Greco Daily Duty
Wednesday, July 29, 2026
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Federal Register · Transition October 16, 2028
CBP extends air-terminal declaration zone test through October 16, 2028
CBP’s notice extends the Air Declaration Zone Test for an additional two years, so participating air terminals may continue using the demonstrative initial declaration method instead of only the ordinary oral-or-written declaration process. The extension keeps the test in place through October 16, 2028, and the notice says all provisions of the initial test remain applicable except the amended expiration date and the number of locations available for implementation. The test applies to arriving travelers at participating air terminals at air ports of entry, with Dallas-Fort Worth identified as the continuing location and other locations possible only if CBP chooses to expand the program. For purposes of the test, a traveler is anyone subject to the declaration rules in 19 CFR part 148 subpart B, but crewmembers subject to subpart G are excluded. The notice says the alternative method does not change the underlying obligation to accurately declare articles or the continued application of the failure-to-declare and false-statement provisions. For a traveler who enters the No Items to Declare queue and is not questioned before exiting the egress area, CBP treats the oral or written declaration requirement as satisfied for purposes of the test. Travelers with items to declare must enter the other queue and present themselves to a CBP officer, and any traveler referred to secondary inspection remains subject to standard declaration and amendment procedures. CBP also states that the test is not expected to affect duty collection or the frequency of enforcement activities. What the packet does not settle is where and when the program may be expanded next, because CBP says expansions will be announced later and may occur at its discretion, and it reserves the right to discontinue the test at any time. The notice also does not provide separate implementation guidance beyond the general queue design and signage description, so location-specific operating details remain to be supplied in later notice or website postings.
Dates | Published | July 29, 2026 Federal Register publication | | Transition | October 16, 2028 Extension runs through this date |
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Federal Register · Deadline July 29, 2026
Commerce opens offset applications for automobile and MHDV engine manufacturers facing parts tariffs
The International Trade Administration’s notice establishes an Engine Offset Process for domestic manufacturers of automobile engines and medium- and heavy-duty vehicle engines, effective for applications beginning July 29, 2026. Under that process, an approved manufacturer may obtain an import adjustment offset amount equal to 3.75 percent of the aggregate value of all engines assembled in the United States by that manufacturer, and the offset may be used to reduce tariff liability under clauses 1, 7, or 12 of Proclamation 10984 or Proclamation 10908. The rule binds domestic manufacturers assembling automobile engines or MHDV engines in the United States, and it also matters for the authorized importers of record the manufacturer lists for use of the offset at entry. The covered tariff exposure is limited to automobile parts and MHDVPs subject to the referenced proclamations, including goods entered under the proclamation-based tariff headings when the importer of record certifies the parts will be used for U.S. production or repair activity. Commerce also excludes certain engine assembly operations treated as limited production operations from the offset calculation, and for the first two years only operations using at least two U.S.-originating core engine components qualify, rising to four such components in year three and later. For a covered party, the practical effect is that the offset is not merely an internal accounting credit: Commerce approves the amount, transmits the offset data and importer of record numbers to CBP, and CBP administers the offset at entry summary filing. The amount may be used only by approved importers associated with the approved manufacturer, may not exceed the manufacturer’s total tariff liability on covered parts, may not be traded, sold, or transferred, and may be carried forward indefinitely until exhausted. Commerce may also adjust a later year’s offset if prior-year output or value proves lower than projected, and inaccurate or unsupported claims can lead to denial, downward adjustment, or penalties. These sources do not reproduce the full text of the incorporated USMCA Appendix to Annex 4-B Table A.2 that identifies the core engine components, so the exact component list must be checked there before relying on the two-component or four-component tests. The notice also describes CBP validation and audit authority in general terms, but it does not spell out any separate electronic filing format or operational handbook beyond the instruction to submit applications electronically and the statement that CBP may request additional documentation at entry summary filing.
Dates | Published | July 29, 2026 Federal Register publication | | Effective | July 29, 2026 Applications may be submitted starting | | Deadline | July 29, 2026 Offset applications may be submitted starting | | Transition | November 1, 2025 MHDV engine offset year 1 begins | | Transition | October 31, 2026 MHDV engine offset year 1 ends | | Transition | November 1, 2026 MHDV engine offset year 2 begins | | Transition | October 31, 2027 MHDV engine offset year 2 ends | | Transition | November 1, 2027 MHDV engine offset year 3 begins | | Transition | October 31, 2028 MHDV engine offset year 3 ends | | Transition | November 1, 2028 MHDV engine offset year 4 begins | | Transition | October 31, 2029 MHDV engine offset year 4 ends | | Transition | November 1, 2029 MHDV engine offset year 5 begins | | Transition | October 31, 2030 MHDV engine offset year 5 ends | | Transition | May 1, 2026 Automobile engine offset year 1 begins | | Transition | April 30, 2027 Automobile engine offset year 1 ends | | Transition | May 1, 2027 Automobile engine offset year 2 begins | | Transition | April 30, 2028 Automobile engine offset year 2 ends | | Transition | May 1, 2028 Automobile engine offset year 3 begins | | Transition | April 30, 2029 Automobile engine offset year 3 ends | | Transition | May 1, 2029 Automobile engine offset year 4 begins | | Transition | April 30, 2030 Automobile engine offset year 4 ends |
Tariff provisions | U.S. note 38(i) of subchapter III of chapter 99 of the HTSUS | Identifies the subheadings and tariff-heading entries covered by the Proclamation 10984 MHDVP tariff regime that the offset may reduce. | | U.S. note 33(g) of subchapter III of chapter 99 of the HTSUS | Identifies the subheadings and tariff-heading entries covered by the Proclamation 10908 automobile-parts tariff regime that the offset may reduce. | | U.S. note 38(b) of subchapter III of chapter 99 of the HTSUS | Defines the MHDV articles subject to duties under Proclamation 10984 for purposes of this offset process. | | U.S. note 33(b) of subchapter III of chapter 99 of the HTSUS | Defines the automobile articles subject to duties under Proclamation 10908 for purposes of this offset process, including light-duty trucks classified in Class 1 and 2 under 10,000 pounds GVW. |
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One question a day, answered from the authorities cited above and nowhere else. Those sources were checked through July 29, 2026, and replies stay open for 7 days. Where they do not settle a question, we say so rather than guess. Tell us the subheading, origin, entry type or dates and the answer comes back specific to them.
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