New Section 232 25% duty on certain high‑performance semiconductors (HTS 8471.50/8471.80/8473.30 via 9903.79.01) with multiple 0% Chapter 99 exclusions and interaction rules.

This CSMS implements a new Section 232 measure on semiconductors and their derivative products under a January 14, 2026 presidential proclamation. Effective for entries for consumption, or withdrawals from warehouse for consumption, on or after 12:01 a.m. eastern time January 15, 2026, certain logic integrated circuits and articles containing them, classifiable in HTSUS 8471.50, 8471.80, or 8473.30, are subject to an additional 25% ad valorem duty when they meet specific technical thresholds and are reported under new Chapter 99 heading 9903.79.01.

Covered products must be logic integrated circuits, or articles containing such circuits, that meet one of two parameter sets: (1) total processing performance (TPP) greater than 14,000 and less than 17,500, with total DRAM bandwidth greater than 4,500 GB/s and less than 5,000 GB/s; or (2) TPP greater than 20,800 and less than 21,100, with total DRAM bandwidth greater than 5,800 GB/s and less than 6,200 GB/s. The precise definitions and scope are in U.S. note 39(b) to subchapter III of chapter 99. Brokers must obtain sufficient technical data from importers to determine whether a given 8471.50, 8471.80, or 8473.30 product falls within these ranges.

New Chapter 99 provisions 9903.79.02 through 9903.79.09 provide 0% additional Section 232 duty for certain categories of semiconductor articles that would otherwise fall under the scope of 9903.79.01. Specifically: 9903.79.02 covers semiconductor articles classifiable in the same base HTS provisions but not meeting the required technical parameters; 9903.79.03 covers articles for use in U.S. data centers, defined as facilities requiring more than 100 MW of new load dedicated to AI inference, training, simulation, or synthetic data generation; 9903.79.04 covers articles for repairs or replacement in the United States; 9903.79.05 covers articles for research and development in the United States, with a detailed definition of R&D activities; 9903.79.06 covers articles for use by U.S. startups, defined as “emerging growth companies” under 15 U.S.C. 77b(a)(19); 9903.79.07 covers articles for use in non‑data center consumer electronics applications (gaming, personal computing, professional visualization, workstations, automotive); 9903.79.08 covers non‑data center civil industrial applications (factory robotics, industrial machinery); and 9903.79.09 covers U.S. public sector applications. All of these headings carry a 0% additional ad valorem duty, but importers must be able to substantiate the claimed end‑use or user.

The bulletin clarifies that merchandise properly filed under 9903.79.01 is not subject to additional duties under a wide range of other Chapter 99 headings, including those covering passenger vehicles and parts, medium‑ and heavy‑duty vehicles and parts, semi‑finished copper and copper‑intensive products, aluminum and derivative aluminum products, iron and steel and their derivatives, and certain country‑specific or reciprocal tariffs. It explicitly states that goods subject to 9903.79.01 are not subject to additional duties under headings 9903.01.25, 9903.01.35, 9903.01.39, 9903.01.63, 9903.02.01–9903.02.73, 9903.02.80, 9903.02.83, and 9903.02.88 (reciprocal tariffs under Executive Order 14257, as amended), 9903.01.77 (Brazil tariffs under Executive Order 14323, as amended), or 9903.01.84 (India tariffs under Executive Order 14329). Instead, filers must use 9903.01.33, 9903.01.83, or 9903.01.87 to declare exemptions from reciprocal, Brazil, or India tariffs, respectively, when the merchandise is properly subject to 9903.79.01.

For goods classified in 8473.30 that are subject to 9903.79.01, filers must use 9903.01.33 (Section 232) rather than 9903.01.32 (Annex II of Executive Order 14257) to claim exemption from reciprocal tariffs. If 8473.30 merchandise is excluded from 9903.79.01 by virtue of qualifying under 9903.79.02–9903.79.09, then 9903.01.32 may be used where applicable. This distinction is critical to avoid double‑assessment or misapplication of reciprocal tariffs.

The proclamation bars drawback on the new Section 232 duties: no drawback is available for duties imposed under the January 14, 2026 measure. For FTZs, any covered product described in clause (3) of the proclamation that is subject to the new duty and admitted into a U.S. FTZ on or after the effective date must be admitted in privileged foreign status (unless eligible as domestic status under 19 CFR 146.43). Upon entry for consumption from the FTZ, the merchandise will be subject to the applicable ad valorem duty rates based on its HTSUS classification, including the 25% under 9903.79.01 where applicable.

For Chapter 98 interactions, goods entered under Chapter 98 that are subject to the additional duties under the proclamation remain eligible for Chapter 98 treatment, but duties under 9802.00.60 must be assessed on the full value of the imported article, not just the value of the foreign processing. If the goods qualify for special tariff treatment under FTAs or preference programs listed in general note 3(c)(i), the 25% duty under 9903.79.01 is collected in addition to any reduced or zero base rate under the FTA or program. No claim for entry or duty exemption/reduction is allowed for semiconductor articles listed in U.S. note 39(b) under any Chapter 99 provision that would otherwise provide a lower or duty‑free rate; any additional duties under other Chapter 99 provisions (subchapter III or IV) are imposed in addition to the 9903.79.01 duties unless specifically exempted as described.

The bulletin also prescribes HTSUS sequencing and duty reporting rules for entry summary lines with multiple HTS numbers. The required order is: (1) Chapter 98 classification (if any); (2) Chapter 99 classifications for additional duties, in the following order for trade remedies: Section 301, IEEPA Fentanyl, IEEPA Reciprocal, then Section 232 or 201 duties, followed by Section 201 or 232 quota; (3) Chapter 99 classifications for replacement duty or other use (with replacement duties for IEEPA or Section 232 included in the trade remedy sequence); (4) Chapter 99 classifications for other quota not covered above; and (5) the Chapter 1–97 primary commodity classification. Duty amounts must be associated with the correct HTSUS numbers and cannot be combined or reported solely on one code when multiple Chapter 99 provisions apply. The entered value should be reported on the Chapter 1–97 subheading unless Chapter 98 rules require otherwise.

Customs brokers and importers of semiconductors and related equipment should immediately update classification databases, entry templates, and internal instructions to incorporate 9903.79.01–9903.79.09, ensure technical and end‑use data collection to support correct Chapter 99 selection, and adjust systems to follow the specified HTSUS sequencing and exemption codes for overlapping trade remedies. They must also ensure no drawback is claimed on the new Section 232 duties and that FTZ admissions and Chapter 98 claims are handled in line with these new rules.