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Ref. :EIC 111/3
EIC 111/3/13
14 April 2025
Dear Sirs,
Further to Commercial Information Circulars (CICs) No. 309/2025 dated 3 April 2025, No. 327/2025 dated 9 April 2025, No. 345/2025 dated 10 April 2025 and No. 346/2025 dated 11 April 2025 on the US’ reciprocal tariff, the US President on 11 April 2025 signed a presidential memorandum providing clarification that specified products classified as “semiconductors” are not subject to the reciprocal tariff effective on 5 April 2025.
DETAILS
2.On 2 April 2025, the US President signed an executive order imposing a reciprocal tariff of an additional ad valorem duty on all imports from all trading partners. All articles imported into the customs territory of the US shall be subject to an additional ad valorem rate of duty of 10% on 5 April 2025 and all articles from specified trading partners imported into the customs territory of the US shall be subject to the specified country-specific ad valorem rates of duty on 9 April 2025. Among others, goods set forth in Annex II to this order shall not be subject to the ad valorem rates of duty under this order. Such include all articles and derivatives of steel and aluminium as well as all automobiles and automotive parts subject to the duties imposed pursuant to section 232 of the Trade Expansion Act of 1962; other products enumerated in Annex II to this order, including copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, and energy and energy products; and all articles that may become subject to duties pursuant to future actions under section 232 of the Trade Expansion Act of 1962.
3.Subsequently, on 8 and 9 April 2025, the US President signed two executive orders modifying reciprocal tariff rates of trading partners. Among others, the reciprocal tariff of an additional ad valorem duty for articles of China (including articles of Hong Kong) is amended to 125% effective on 10 April 2025. Besides, effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption on 10 April 2025, enforcement of the country-specific ad valorem rates of duty is suspended until 9 July 2025. Effective on 10 April 2025 and until 9 July 2025, all articles imported into the customs territory of the US from the specified trading partners shall be subject to an additional ad valorem rate of duty of 10%.
4.On 11 April 2025, the US President signed a presidential memorandum providing clarification that for certain goods that are not subject to the reciprocal tariff of ad valorem rates of duty, one of those excepted products is “semiconductors”. The term’s meaning includes the products classified in the specified headings and subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) in the memorandum. The US Customs and Border Protection (CBP) issued a message on 11 April 2025 announcing that all products that are properly classified in these listed provisions will be excluded from the reciprocal tariffs effective for merchandise entered for consumption, or withdrawn from warehouse for consumption, on 5 April 2025. Any such duties that were collected on or after 5 April 2025 on imports that are excepted from reciprocal tariff because they are “semiconductors,” as explained in the memorandum, shall be refunded in accordance with the US CBP’s standard procedures for such refunds.
5.For further details, please refer to the US’ presidential memorandum and the US CBP’s message:
The US’ presidential memorandum (11 April 2025)
https://www.whitehouse.gov/presidential-actions/2025/04/clarification-of-exceptions-under-executive-order-14257-of-april-2-2025-as-amended/
US CBP’s Cargo Systems Messaging Service Message - Updated Guidance - Reciprocal Tariff Exclusion for Specified Products; April 5, 2025 Effective Date
https://content.govdelivery.com/bulletins/gd/USDHSCBP-3db9e55?wgt_ref=USDHSCBP_WIDGET_2
6.For enquiries concerning the content of this circular, please contact us at telephone number 2398 5405.
Yours faithfully,
(Miss Kwany KOU)
for Director-General of Trade and Industry
Note: While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.