Notice implements a U.S.–Taiwan MOU by capping certain Taiwanese auto parts and wood product duties at 15% and removing Section 232 derivative tariffs from specified Taiwanese aircraft components, effective for entries from May 1, 2026.

This Federal Register notice is an immediately actionable Section 232 tariff implementation affecting U.S. imports from Taiwan. It implements tariff-related elements of a trade and security Memorandum of Understanding between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office.

Key changes

1) Automobile parts of Taiwan (passenger vehicles and light trucks)

• New Chapter 99 headings 9903.94.66, 9903.94.67, 9903.94.68, and 9903.94.69 are created under subchapter III of chapter 99.
• These headings apply to parts of passenger vehicles and light trucks that are products of Taiwan and are classifiable in the auto-parts provisions referenced in U.S. note 33(g) or that meet the requirements of U.S. note 33(r).
• Policy rule from the MOU: for covered Taiwanese auto parts, Section 232 duties are limited so that:

– If the underlying Column 1 duty rate (general or special ad valorem or ad valorem equivalent) is at least 15%, no additional Section 232 duty applies. Total duty remains the existing base rate (≥15%). These goods fall under 9903.94.66 and 9903.94.68 and show “No change” in the duty columns, meaning no extra Section 232 ad valorem is added.

– If the underlying Column 1 duty rate is less than 15%, the sum of the base duty and the Section 232 duty is set at 15%. These goods fall under 9903.94.67 and 9903.94.69, which specify a 15% rate in both General and Special columns. In practice, the Section 232 component is adjusted so that total duty equals 15%.

• U.S. note 33(u) codifies that these headings provide the ordinary customs duty treatment for certain Taiwanese auto parts and explicitly states that such entries are not subject to the additional Section 232 duties on aluminum, steel, copper, or wood products under headings 9903.82.02, 9903.82.04–9903.82.19, and 9903.76.01–.03, .24.
• FTZ treatment: any covered automotive part of Taiwan admitted into a U.S. foreign trade zone on or after 12:01 a.m. ET May 1, 2026 must be admitted in privileged foreign status and will be subject to the applicable ad valorem rates under these Chapter 99 headings upon entry for consumption.

2) Wood products of Taiwan

• New heading 9903.76.24 is added: “Wood products of Taiwan as provided for in subdivisions (d) and (f) of U.S. note 37 of this subchapter. 15% … 15% … No change.”
• U.S. note 37(m) clarifies that heading 9903.76.24 provides the ordinary customs duty treatment for wood products of Taiwan described in U.S. note 37(d) and (f).
• For such products eligible for special tariff treatment under free trade agreements or preference programs (general note 3(c)(i)), the 15% duty under 9903.76.24 is collected instead of any lower special rate. In other words, the 15% rate overrides preferential rates.
• The note also bars use of other Chapter 99 provisions that would set a lower or duty-free rate for these Taiwanese wood products. All other applicable duties (ADD/CVD, fees) still apply.

3) Civil aircraft components of Taiwan (removal of derivative Section 232 duties)

• U.S. note 35(c) is added to state that the additional duties imposed by headings 9903.82.02 and 9903.82.04–9903.82.19 (derivative steel, aluminum, and copper tariffs) do not apply to articles that:

– are products of Taiwan;

– are civil aircraft components (all aircraft other than military and unmanned aircraft);

– meet the criteria of General Note 6 (civil aircraft provisions); and

– are classifiable in a long list of specified HTS headings (including numerous steel and aluminum tubes, pipes, structures, machinery, HVAC, and electrical components such as 7304.x, 7306.x, 7312.x, 7322.90.00, 7608.x, 8302.x, 8415.x, 8479.x, 8483.x, 8504.x, 8517.71.00, 8529.90.73, 8543.90.88, etc.).

• New heading 9903.96.03 is created: “Civil aircraft components that are products of Taiwan, provided for in subdivision (c) of U.S. note 35.” The duty columns show “No change,” meaning the base HTS duty applies without any additional Section 232 derivative duty.

4) Cross-references and technical HTSUS updates

• Multiple U.S. notes (2(aa), 33, 37, 39) are amended to add Taiwan alongside Japan, the EU, and South Korea in existing Section 232 auto and wood frameworks and to reference the new 9903 headings.
• Some dates in existing headings (e.g., 9903.94.31, 9903.94.32, 9903.96.01) are filled in as June 30, 2025, but these are background corrections and do not change the core Taiwan-specific duty rules described above.

Effective date and refunds

• The notice is effective May 28, 2026, but the HTSUS modifications apply retroactively to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on May 1, 2026.
• The notice explicitly states that any required refunds of duties collected due to these changes will be processed under applicable law and standard CBP procedures. This implies importers may need to file post-summary corrections or protests to recover overpaid Section 232 duties on eligible Taiwanese goods entered on or after May 1, 2026.

Practical actions for importers and brokers

• Identify Taiwanese-origin auto parts that fall under the auto-parts provisions referenced in U.S. note 33(g) or meet note 33(r) and determine whether their base Column 1 duty rate is below or at/above 15%. For entries on or after May 1, 2026, ensure the correct Chapter 99 code (9903.94.66–.69) is declared so that:

– Parts with base duty ≥15% are not assessed additional Section 232 duty; and

– Parts with base duty <15% are assessed a total of 15% (base plus Section 232).

• For Taiwanese wood products described in U.S. note 37(d) and (f), classify under 9903.76.24 and apply a 15% duty rate, even if an FTA or preference program would otherwise provide a lower rate.
• For Taiwanese civil aircraft components that meet General Note 6 and are classifiable in the listed HTS headings, use 9903.96.03 to ensure that derivative Section 232 steel, aluminum, and copper duties are not applied; only the base HTS duty should be collected.
• Review entries of affected Taiwanese goods entered on or after May 1, 2026 where Section 232 duties were paid under headings 9903.82.02 or 9903.82.04–.19 or under prior auto/wood Section 232 provisions, and file PSCs or protests within statutory deadlines to claim refunds.
• Update internal classification databases, broker instructions, and FTZ procedures to reflect the new Chapter 99 requirements, including the privileged foreign status requirement for covered Taiwanese auto parts admitted to FTZs on or after May 1, 2026.

Priority and impact

This is a high-priority change for importers of Taiwanese auto parts, wood products, and aircraft components because it directly alters Section 232 duty liability, introduces new Chapter 99 classifications, and is retroactive to May 1, 2026. Failure to adjust classifications and duty calculations could result in overpayment or underpayment of duties and missed refund opportunities.