New ACE validations will reject certain Section 232 auto/vehicle part entries where Chapter 99 duty is claimed with an auto license or exceeds license balance.

CBP will deploy new ACE validations on July 18, 2026 affecting how Section 232 duties are filed for automobile and medium and heavy-duty vehicle parts when import adjustment offsets are used. These validations apply to entries where an Automobile License is reported via Importer’s Additional Declaration Record Type 11 in conjunction with auto part Chapter 99 HTS numbers used for Section 232.

Two new ACE error conditions are defined in the updated ACE CATAIR Error Dictionary V51. Error F866 (AUTO LICENSE PRESENT – DUTY NOT ALLOWED) will occur when an Automobile License (Record Type 11) is submitted on a line, but duty is still present on the corresponding auto part Chapter 99 HTS number. This means that if the license is intended to offset the Section 232 duty on that Chapter 99 line, the filer must ensure that the duty amount is correctly reduced or eliminated in accordance with the license usage rules. Error F861 (AUTO LICENSE INSUFFICIENT BALANCE) will occur when the submitted Automobile License does not have a sufficient remaining balance to cover the Section 232 duty being offset on the auto part line.

Although this bulletin does not change the underlying Section 232 duty rates or the applicable Chapter 99 provisions, it changes how entries must be structured and validated in ACE for duty calculation and offset purposes. Customs brokers and importers filing Section 232 entries for auto and medium/heavy-duty vehicle parts must adjust their internal procedures and ABI programming so that: (1) the Automobile License balance is checked before applying an offset; and (2) the duty amount on the Chapter 99 line is consistent with the offset claimed. Failure to do so will result in ACE rejections under the new error codes.

The deployment is scheduled for both the CERT and PROD environments on July 18, 2026. Brokers should use the CERT environment to test Section 232 auto and vehicle part entries with import adjustment offsets prior to that date. Compliance teams should review CSMS #69087399 for detailed filing instructions on import adjustment offsets and CSMS #67640669 for guidance on using ACE Reports to monitor total Section 232 duty amounts offset by these licenses. Entry staff should be trained on interpreting and resolving F866 and F861 errors. No new HTS codes or specific tariff rate percentages are introduced, but the operational rules for how Section 232 duties and offsets must be reflected on entry lines are now more strictly enforced.