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New U.S. Tariffs on Timber, Lumber, and their Derivative Products

10/20/2025 | Dominion Customs Consultants Inc |

CSMS # 66492057 – GUIDANCE: Section 232 Import Duties on Timber, Lumber, and their Derivative Products

Below is a summary of the guidance provided by U.S. Customs Border Protection on the implementation of Proclamation 10976, “Adjusting Imports of Timber, Lumber, and Their Derivative Products into the United States,” (September 29, 2025).

To review the full document, please click on the link below.

CSMS # 66492057 – GUIDANCE: Section 232 Import Duties on Timber, Lumber, and their Derivative Products

Background

  • Legal Authority: Proclamation 10976 operates under Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862)
  • Duty Type: Imposes ad valorem duties on specific imported goods
  • Duty Rates: Ranges from 10 percent to 25 percent depending on the product category
  • Affected Products:
    • Softwood lumber
    • Upholstered wooden furniture products
    • Completed kitchen cabinets and vanities
    • Parts for kitchen cabinets and vanities
  • Impact: These duties directly affect the cost of importing wooden furniture and construction materials into the United States
  • Purpose: The proclamation serves as a trade protection measure, likely aimed at supporting domestic manufacturers in these specific sectors

Guidance

This guidance provides instructions for importers, brokers, and filers on submitting entries to U.S. Customs and Border Protection (CBP) of merchandise subject to tariffs imposed by Proclamation 10976.

The additional duties are effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time on October 14, 2025.

Softwood Timber and Lumber

  • Regulation 9903.76.01 imposes additional duties on softwood timber and lumber imports from all countries
  • Affected Products: Multiple categories under the Harmonized Tariff Schedule (HTSUS) including:
    • Raw timber (4403 series)
    • Railway sleepers and lumber products (4406-4407 series)
    • Various processed wood items
  • Additional Duty Rate: 10 percent ad valorem applied on top of existing tariffs
  • Scope: Comprehensive coverage across 15 specific HTSUS classifications, ranging from 4403.11.00 to 4407.19.00
  • Impact: This tariff affects a broad range of softwood products, from raw timber to processed lumber, creating uniform additional costs across the supply chain
  • Application: Universal implementation regardless of country of origin, affecting global softwood timber trade

Upholstered Wooden Furniture Products from All Countries other than the United Kingdom, Japan, and Member Countries of the European Union

  • Applies to: Imports of upholstered wooden furniture products from most countries worldwide
  • Country Exemptions:
    • United Kingdom
    • European Union member countries
    • Japan
  • Affected HTSUS Classification Codes:
    • HTSUS 9401.61.4011
    • HTSUS 9401.61.4031
    • HTSUS 9401.61.6011
    • HTSUS 9401.61.6031
  • Additional Duty Rate: 25% ad valorem (added to existing tariff rates)
  • Regulation Code: 9903.76.02

Completed Kitchen Cabinets and Vanities and Parts from All Countries other than the United Kingdom, Japan, and Member Countries of the European Union

  • Main Application: Regulation 9903.76.03 imposes additional import duties on completed kitchen cabinets, vanities, and their component parts
  • Geographic Scope: Applies to imports from all countries worldwide with specific exclusions
    • Key Exclusions:
      • United Kingdom
      • European Union member countries
      • Japan
  • Affected Product Classifications:
    • HTSUS 9403.40.9060
    • HTSUS 9403.60.8093
    • HTSUS 9403.91.0080
  • • Duty Rate: 25% additional ad valorem rate imposed on top of existing tariffs

Other Than Completed Kitchen Cabinets and Vanities and Their Parts from All Countries

  • Regulation 9903.76.04 governs imports of specific furniture products from all countries
  • Scope: Applies to products other than completed kitchen cabinets and vanities and their parts
  • Covered Classifications: Three specific HTSUS provisions are included:
    • 9403.40.9060
    • 9403.60.8093
    • 9403.91.0080
  • Duty Rate: 0% additional ad valorem rate applies to qualifying imports
  • Important Note: This regulation specifically excludes completed kitchen cabinets and vanities, focusing instead on related furniture items and components

Upholstered Wooden Furniture Products; and Completed Kitchen Cabinets and Vanities, and Their Parts from the United Kingdom, Japan, and Member Countries of the European Union

This summary covers additional ad valorem duty rates applied to specific furniture imports under various HTSUS classifications, affecting upholstered wooden furniture products, completed kitchen cabinets, vanities, and their parts.

  • United Kingdom (Code 9903.76.20)
    • 10% additional ad valorem duty rate
    • Applies to furniture classified under seven specific HTSUS provisions
      • 9401.61.4011
      • 9401.61.4031
      • 9401.61.6011
      • 9401.61.6031
      • 9403.40.9060
      • 9403.60.8093
      • 9403.91.0080
      • Covers upholstered wooden furniture, kitchen cabinets, and vanities
  • Japan (Code 9903.76.21)
    • 15% additional ad valorem duty rate
    • Same product categories and HTSUS classifications as UK
    • Higher duty rate compared to UK imports
  • European Union Member Countries (Code 9903.76.22)
    • 15% additional ad valorem duty rate
    • Identical product scope and classifications
    • Same rate structure as Japanese imports

Exemption for Goods Subject to Section 232 Duties on Automobiles and Automobile Parts

If an imported good is subject to both the Section 232 duties on automobiles and automobile parts under Proclamation 10908, as amended, and the Section 232 duties on timber, lumber, and their derivative products under Proclamation 10976, then the Section 232 duties on timber, lumber, and their derivative products under Proclamation 10976 are not applicable.

IEEPA Tariff Exceptions

Main Exemption Rule

  • Imported goods subject to Section 232 duties on timber, lumber, and derivative products under Proclamation 10976 are exempt from additional IEEPA tariffs
  • This exemption applies specifically to products classified under HTSUS headings:
    • 9903.76.01,
    • 9903.76.02,
    • 9903.76.03,
    • 9903.76.20,
    • 9903.76.21, or
    • 9903.76.22

Exempt IEEPA Tariffs Include:

  • Canada tariffs (EO 14193) – targeting illicit drug flow across northern border
  • Mexico tariffs (EO 14194) – addressing southern border situation
  • Reciprocal tariffs (EO 14257) – additional reciprocal duties
  • Brazil tariffs (EO 14323) – specific to Brazilian products
  • India tariffs (EO 14329) – related to Russian oil transactions

Simplified Declaration Process

Canada and Mexico products: No additional Chapter 99 HTSUS provision required for exemption from their respective IEEPA tariffs (headings 9903.01.10, 9903.01.13 for Canada; 9903.01.01, 9903.01.05 for Mexico)

Required Declaration Codes for Other Exemptions:

  • Heading 9903.01.33: Use for exemption from IEEPA Reciprocal tariffs (headings 9903.01.25 and 9903.02.02-9903.02.73)
  • Heading 9903.01.83: Use for exemption from IEEPA Brazil tariff (heading 9903.01.77)
  • Heading 9903.01.87: Use for exemption from IEEPA Russian Oil/India tariff (heading 9903.01.84)

Removal of Certain Products from Reciprocal Tariff Exception

  • Main Impact: Proclamation 10976 modified the list of products excepted from IEEPA Reciprocal tariffs, specifically affecting the Annex II exceptions outlined in Executive Order 14257
  • Current Exception Framework: The Annex II Reciprocal exceptions (heading 9903.01.32) include products classified under specific HTSUS subheadings as defined in U.S. note 2 to subchapter III of chapter 99
  • Significant Change: 158 Chapter 44 subheadings will be removed from the Annex II Reciprocal exceptions list, making them subject to Reciprocal tariffs
  • Implementation Timeline: Changes take effect for goods entered for consumption or withdrawn from warehouse on or after 12:01 a.m. Eastern Daylight Time on October 14, 2025
  • Business Impact: Products previously exempt under these Chapter 44 subheadings will now face additional tariff obligations, potentially affecting import costs and supply chain strategies

Drawback

Drawback continues to be available, in accordance with applicable regulations in 19 C.F.R. part 190, for eligible claims with respect to the duties imposed pursuant to Proclamation 10976.

Foreign Trade Zone

Any imports of goods subject to the duties imposed by Proclamation 10976, except those eligible for admission under “domestic status” as defined in 19 CFR 146.43, that are admitted into a U.S. foreign trade zone on or after the effective date of October 14, 2025, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable HTSUS subheading.

Should you or your organization have any questions,

please do not hesitate to contact your Dominion Customs Consultants representative,

or feel free to reach us here

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