Section 122 affects auto industry imports unevenly. Annex II of the Section 122 proclamation excludes passenger vehicles, certain light trucks, certain medium- and heavy-duty vehicles, buses, and certain parts. USMCA-qualifying auto parts are also exempt. Section 232 auto tariff (where in effect) takes precedence over Section 122 for covered finished vehicles. The result: most U.S.-bound vehicles either fall in Annex II, qualify under USMCA, or pay Section 232 – Section 122 stacking is rare for autos.
The Section 122 proclamation explicitly excluded most finished vehicles and many vehicle parts via Annex II. For Tier 2/3 auto suppliers, the practical question is which specific parts fall in or out of Annex II, how USMCA qualification interacts, and where Section 232 still applies.
This guide walks through the auto-specific provisions and the resulting effective duty stack for common SKU categories.
What Annex II excludes
Annex II covers passenger vehicles, certain light trucks, medium- and heavy-duty vehicles, buses, and “certain parts.” The HTS subheadings on the Annex II list are the legal trigger; product descriptions are informational only. If your part is misclassified, the Annex II exclusion does not apply.
USMCA-qualifying auto parts
USMCA-qualifying auto parts are exempt from Section 122. Combined with Annex II, this means most U.S.-bound auto goods either qualify under USMCA or fall in Annex II – the Section 122 stack is rare for the auto sector.
For Tier 2 suppliers below the USMCA RVC threshold, Section 122 can apply on the non-qualifying portion or on entire shipments depending on configuration.
Section 232 auto interaction
When Section 232 auto tariff is in effect (rates have moved between 0% and 25% multiple times), it generally takes precedence over Section 122 – the importer pays Section 232 in lieu, not stacked.
Practical exposure by SKU type
Finished vehicles in Annex II scope: not subject to Section 122. Subject to Section 232 if active.
Auto Tier 2/3 parts USMCA-qualifying: not subject to Section 122 or Section 301 (where Mexican-origin).
Non-USMCA Tier 2/3 parts not in Annex II: pay Section 122 plus base MFN unless Section 232 derivative scope applies.
Frequently asked questions
Are passenger vehicles subject to Section 122?
No. Annex II excludes passenger vehicles, light trucks, medium and heavy-duty vehicles, and buses by HS subheading.
What about specific auto parts?
Annex II includes a “certain parts” category covering specific HTS subheadings. Other parts that are not in Annex II and not USMCA-qualifying do pay Section 122.
Does Section 232 stack with Section 122?
No, generally. Section 232-covered goods pay Section 232 in lieu of Section 122.
Can a non-USMCA part avoid Section 122 by reclassification?
If the correct HS classification places the part in Annex II, yes. If not, reclassification cannot move a non-Annex-II part out of Section 122 scope.
Where can I see the Annex II HTS list?
The proclamation publishes the full Annex II list. We maintain a working reference; contact us for the current version.
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