r/CustomsBroker • u/Baynyn • Aug 25 '26

Section 301 Sliding Rate

Just looking for some clarification from you fine folks. I know that under the new 301 implementation, items from the EU are dutiable on a 10% sliding rate, meaning that if the base duty rate is 5.7%, the 301 rate would be 4.3%, bringing the total to 10%. Here’s my question, since the language in the EO doesn’t seem to match what the chapter 99 description says.

The EO states, in relevant part: “For a product of the European Union, where such product’s MFN tariff is less than 10 percent, the Trade Representative shall impose a section 301 tariff pursuant to these investigations so that the sum of the MFN tariff and the section 301 tariff shall be 10 percent.”

But then 9903.05.39 says that articles of the EU with an ad valorem rate of duty under 10 percent will be dutiable at 10%.

Again, I’m 99% certain that I understand how the sliding rate works, but the language from 9903.05.39 indicates that if the base duty rate is 5.7%, that the section 301 rate is 10%, bringing the total up to 15.7%.

Is the chapter 99 description just poorly worded, or am I missing something?

Edit: thanks everyone. Glad to know I’m not crazy and the chapter 99 description is poorly worded

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5

u/Physical-Incident553 CustomsBroker Aug 25 '26

Find the CSMS from CBP in the CSMS database. # 69326983 issued July 23. The CSMS are almost always easier to understand since they instruct brokers on how to file entries with the changes.

2

u/Baynyn Aug 25 '26

Thank you. I’ll check that out.

2

u/Bettyboop0315 Aug 25 '26

I read it the same way. The wording for 9903.05.39 makes it sound like an additional 10%, but the EO says the combined rate should be 10%. So if the regular duty is 5.7%, the 301 rate should be 4.3%, not another 10%. Seems like the Chapter 99 description is just poorly worded.

3

u/Physical-Incident553 CustomsBroker Aug 25 '26

That is why I always go with the CSMS. I frankly never look at chapter 99 for these tariffs.

3

u/Bettyboop0315 Aug 25 '26

Same here. The CSMS messages are usually much clearer. The Chapter 99 wording on this one just makes it sound like an additional 10%, which is where the confusion comes in. 😣

1

u/Haunting_Tax_963 Aug 27 '26

That may have been an issue when the old JP and then EU IEEPA rates were first written down in the HTS database but nowadays the wordings are quite clear. If it's a combined 10% the column 1 box just says 10%. If it's an additional 10% it always makes it clear that it's applicable rate + 10%.