Implements a 15% minimum duty on many South Korean autos, parts, wood and other goods, while exempting qualifying civil aircraft from additional tariffs, effective Nov 1 & 14, 2025.
The notice is a binding implementation of tariff elements of the U.S.-Korea Strategic Trade and Investment Deal and directly amends the HTSUS. It establishes that for most South Korean-origin goods with a column 1 (MFN or KORUS) duty rate below 15%, the combined base duty plus new chapter 99 duty must equal 15% ad valorem, while goods already at or above 15% incur no extra reciprocal duty. Specifically, new headings 9903.94.61, 9903.94.63, and 9903.94.65 impose a 15% total duty on South Korean passenger vehicles, light trucks, and their parts when their base rate is under 15%, and 9903.94.60, 9903.94.62, and 9903.94.64 apply when the base rate is at least 15% with no additional duty. New headings 9903.02.79 and 9903.02.80 extend this 15% minimum duty structure to South Korean goods generally, and 9903.76.23 does the same for specified South Korean timber, lumber, and derivative wood products. At the same time, heading 9903.02.81 exempts qualifying South Korean civil aircraft and a long list of aircraft-related HTS provisions from additional duties under reciprocal and Section 232 copper, steel, and aluminum measures, so only the base HTS duty applies. The effective dates are November 1, 2025, for autos and auto parts (Part A) and November 14, 2025, for reciprocal tariffs, wood products, and aircraft-related changes (Part B), with FTZ privileged foreign status rules tied to the December 4, 2025 publication date. Importers and brokers must immediately adjust classifications to add the appropriate chapter 99 headings for South Korean-origin entries, recalculate landed costs to reflect the 15% minimum duty where applicable, and ensure that qualifying civil aircraft and parts are properly claimed under 9903.02.81 to avoid unnecessary additional duties.
This Federal Register notice is an immediately actionable implementation of tariff changes under the U.S.-Korea Strategic Trade and Investment Deal and directly amends the Harmonized Tariff Schedule of the United States (HTSUS), primarily in chapter 99.
Core structure of the deal
The U.S.-ROK Deal establishes a 15% minimum total ad valorem duty for most South Korean-origin goods subject to reciprocal tariffs and related measures. For South Korean goods whose column 1 duty rate (MFN or KORUS, as applicable) is less than 15%, the sum of the base duty and the additional ad valorem duty under the new chapter 99 provisions must equal 15%. For South Korean goods whose column 1 duty rate is at least 15%, the additional ad valorem duty under these reciprocal/Section 232-type measures is set to zero.
Automobiles and auto parts (Part A)
Effective for entries and withdrawals for consumption on or after 12:01 a.m. ET on November 1, 2025, new HTSUS headings 9903.94.60–9903.94.65 are created and integrated into U.S. note 33. Headings 9903.94.60 and 9903.94.61 cover passenger vehicles and light trucks that are products of South Korea. If the applicable column 1 duty (General or Special) is equal to or greater than 15%, 9903.94.60 applies and no additional duty is imposed beyond the base rate. If the base duty is less than 15%, 9903.94.61 applies and the total duty is set at 15% ad valorem (the table explicitly lists 15% for both General and Special). Similarly, headings 9903.94.62 and 9903.94.63 apply to certain parts of passenger vehicles and light trucks (as defined in U.S. note 33(g) and (t)), and headings 9903.94.64 and 9903.94.65 apply to another defined set of auto parts (per note 33(r) and (t)). In each pair, the “≥15%” heading imposes no extra duty, while the “<15%” heading sets the total duty at 15%. The notice also requires that covered South Korean vehicles and auto parts admitted into U.S. foreign trade zones on or after 12:01 a.m. ET on the publication date be admitted in privileged foreign status, ensuring that the 15% duty structure applies when they are entered for consumption. These goods are explicitly excluded from additional Section 232 copper, steel, and aluminum duties under specified chapter 99 headings.
General reciprocal tariffs and wood products (Part B)
Effective for entries and withdrawals for consumption on or after 12:01 a.m. ET on November 14, 2025, the notice extends the 15% minimum duty concept to South Korean goods generally and to timber, lumber, and derivative wood products. New headings 9903.02.79 and 9903.02.80 are added. Under U.S. note 2(v)(xxiii)(a), for South Korean-origin articles (subject to certain exclusions) with a column 1 duty rate less than 15%, heading 9903.02.80 applies so that the sum of the base duty and the additional duty equals 15% ad valorem. For South Korean-origin articles with a column 1 duty rate of 15% or higher, heading 9903.02.79 applies and no additional duty is due under that heading. In parallel, new heading 9903.76.23 is created for wood products of South Korea described in U.S. note 37(d) and (f). For these timber, lumber, and derivative products, the duty under 9903.76.23 is 15% (General and Special), effectively raising total duty to 15% where the base rate is below that level, while goods with base rates at or above 15% incur no extra duty under Proclamation 10976. The note clarifies that no chapter 99 provision may be used to reduce the duty below this level, and that any antidumping, countervailing, or other duties remain in addition.
Civil aircraft carve-out
The notice also implements a significant carve-out for South Korean civil aircraft and related products. New heading 9903.02.81 covers civil aircraft (all aircraft other than military aircraft and unmanned aircraft), their engines, parts, components, subassemblies, and ground flight simulators and their parts, of South Korea, provided they meet General Note 6 criteria and are classifiable in a long list of HTS provisions (including numerous headings in chapters 39, 40, 48, 68, 70, 73, 76, 84, 85, 88, 90, 94, 96, and certain 98/98xx provisions). Under U.S. note 2(v)(xxiii)(b), these products are exempt from additional duties under headings 9903.02.79, 9903.02.80, 9903.78.01 (copper), 9903.81.87–.91, .93 (steel and derivatives), and 9903.85.02, .04, .07, .08 (aluminum and derivatives). Thus, qualifying South Korean civil aircraft and listed parts pay only the base HTS duty (often “Free (C)” under the Civil Aircraft Agreement) and are shielded from the reciprocal and Section 232 surcharges.
Effective dates and scope
The notice is effective upon publication on December 4, 2025, but the operative tariff changes are backdated to November 1, 2025, for autos and auto parts (Part A) and November 14, 2025, for reciprocal tariffs, wood products, and aircraft-related changes (Part B). The geographic scope is limited to products of South Korea, but the changes interact with existing structures for Japan and the EU via shared notes on ad valorem equivalents.
Practical actions for importers and brokers
Importers and customs brokers handling South Korean-origin goods must immediately update classification and entry processes. For passenger vehicles, light trucks, and their parts from South Korea entered on or after November 1, 2025, the appropriate chapter 99 heading (9903.94.60–.65) must be declared in addition to the underlying HTS classification, with careful determination of whether the base duty is below or at/above 15%. For all other South Korean-origin goods subject to reciprocal tariffs and entered on or after November 14, 2025, filers must determine the applicable column 1 duty rate and apply 9903.02.80 (15% total duty) if it is below 15%, or 9903.02.79 (no additional duty) if it is 15% or higher, subject to the listed exclusions. For South Korean timber, lumber, and derivative products described in U.S. note 37(d) and (f), heading 9903.76.23 must be applied to reach a 15% total duty where required, and no overlapping chapter 99 reductions may be claimed. For South Korean civil aircraft and related parts that meet General Note 6 and fall under the specified HTS provisions, importers should ensure they are treated under 9903.02.81 so that no additional duties under the reciprocal or Section 232 headings are assessed. Foreign trade zone operators must admit covered South Korean vehicles and auto parts in privileged foreign status from the publication date forward. Trade compliance teams should also review contracts, pricing, and landed cost models for South Korean autos, parts, wood products, and industrial goods to reflect the new 15% minimum duty and the aircraft carve-out, and ensure internal systems and broker instructions are updated to use the new chapter 99 headings and revised notes.