Effective August 1, 2025, the US government imposed a significant 50% ad valorem tariff on all imports of semi-finished copper and intensive copper derivative products, from all countries. This action stems from a Presidential Proclamation issued July 30 under Section 232 of the Trade Expansion Act of 1962, which authorizes the President to adjust imports that threaten national security.

Key Highlights for Importers

1. Scope of Products Affected
The tariff applies to copper products classified under new HTSUS subheadings 9903.78.01 and 9903.78.02, which separate duties based on the copper content of imported goods.

  • 9903.78.01 – 50% duty on the copper content.
  • 9903.78.02 – 0% duty on the non-copper content and on goods that contain no copper.

2. How to File Entries Correctly
Importers must report the copper and non-copper portions separately on entry summaries:

  • Copper Content (HTSUS 9903.78.01):
    • Report the value of the copper only.
    • Apply the 50% tariff based on that value.
    • Provide the quantity in kilograms.
  • Non-Copper Content (HTSUS 9903.78.02):
    • Report the remaining value of the good.
    • Apply 0% tariff, but still report any other applicable duties (e.g., Section 301, AD/CVD).

If the copper content cannot be reasonably separated or substantiated, CBP will assess the 50% duty on the full value of the good.

3. Documentation Requirements
Importers must keep supporting documentation—such as bills of materials and supplier invoices—to verify declared copper content. Failure to do so may result in:

  • Duty applied to the full value of the article
  • Penalties, including monetary fines and loss of import privileges

4. Other Key Provisions

  • No Drawback Allowed: Duties paid under this proclamation are not eligible for drawback.
  • Foreign Trade Zones (FTZs): Products must enter FTZs as privileged foreign status, locking in the 50% duty rate upon withdrawal.
  • Auto Part Overlap: If the goods are already subject to Section 232 duties on autos/auto parts, copper duties do not apply.

Takeaway for US Importers

US Customs guidance issued under CSMS # 65794272 provides information on the value of the copper content. The value of the copper content is the total price paid or payable for that content, which is:

  • the total payment made/to be made for the copper content by the buyer to, or for the benefit of, the seller of the copper content.
  • Normally, this would be based on the invoice paid by the buyer of the copper content to, or for the benefit of the seller of the copper content.

This action represents a significant shift in copper import policy and increases the compliance burden on importers dealing in semi-finished or copper-rich products. Understanding the classification, valuation, and reporting requirements is essential to avoid penalties or delays.

Mohawk Global Trade Advisors is closely monitoring the new Section 232 copper tariffs and their impact on US importers. We can help you assess copper content risks, align your entry reporting, and adapt your sourcing strategy to stay compliant. Contact us for tailored guidance.

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