In This Article
Key Takeaways
- ◆The September 2024 USTR determination set a 25% Section 301 duty for the specified 8505.11.00 goods from 1 January 2026.
- ◆That action does not establish the treatment of 8505.19 or a complete motor assembly.
- ◆CBP ended collection under the listed IEEPA tariff actions from 24 February 2026; other duties were unaffected by that notice.
- ◆A 25% duty on a hypothetical $30/kg customs value is $7.50/kg for that duty alone. It is not an all-in landed price.
- ◆Confirm origin, classification, valuation, entry date and every applicable duty or exclusion before contracting.
What changed on 1 January 2026
USTR’s September 2024 final modification placed specified permanent magnets under HTSUS 8505.11.00 in the 2026 tranche, with 25% additional duty from 1 January 2026 and the associated Chapter 99 provision 9903.91.06.
This was the four-year-review modification. The earlier description of an expiring 2018 List 4A exemption was incorrect. This notice supports that action’s scope and start date; it is not a complete current duty calculation.
Key insight
Reviewed 12 September 2026. This article retains its original publication date. The linked rules have the source dates stated below; confirm the instruments in force for the intended entry or shipment date.
Classify the imported article
Determine the classification of the goods as imported. Loose magnets, composite articles and finished motors may require different analysis. The 8505.11.00 action does not by itself put 8505.19 into the same tranche or make that code duty-free under other provisions. Do not assign every bonded magnet or alloy to a code from a generic material label. Give the customs broker the drawing, composition and assembled condition.
The February 2026 IEEPA change
CBP CSMS 67834313, issued 22 February 2026, ended collection under the listed IEEPA actions from 24 February 2026. The notice leaves other duties, including Section 301 and Section 232, unaffected. The earlier Annex II discussion in this article is therefore superseded. Check current HTS and CBP instructions for any other authority that applies on the entry date.
A calculation with a defined scope
For illustration only, if an imported article has an accepted customs value of $30/kg and an applicable additional duty of 25%, that one duty is $7.50/kg. This does not specify the transaction value of a real magnet or certify its classification. Add each other applicable duty, customs charge, freight, insurance and brokerage separately. The previous 27.1% figure is not presented as a complete current tariff total.
Agree responsibilities in the purchase order
Name the importer of record and the customs broker. State the agreed delivery term, place and version, plus who bears changes in duty or freight. A delivery term alone does not settle every customs responsibility or commercial repricing dispute. Require the quotation for the part to identify the assumptions used for its landed-cost estimate and to separate goods cost from taxes and transport.
Check relief and origin before relying on them
Ask the broker to establish eligibility and procedures for any proposed exclusion, drawback or foreign-trade-zone treatment. Re-export, assembly in another country or a different seller address does not automatically establish duty relief or change origin. Record the legal basis and the supporting manufacturing records for the actual route.
Keep Chinese export review separate
Announcement 70 of 7 November 2025 suspends Announcements 55–58 and 61–62 until 10 November 2026. Announcement 18 is absent from that suspension list. The suspension is not a shipment deadline or a blanket exemption.
Check subsequent notices for the intended shipment date. Grade suffixes and F/N/D series labels do not establish composition or export clearance. Classify the actual item and transaction with the exporter, including the parties, end use and route. See the export-control guide. A US tariff calculation does not establish Chinese export authorization. The export-control guide explains the separate review.
Frequently Asked Questions
Does the January 2026 action cover finished motors?
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Classify the finished article as imported. Do not apply the loose-magnet tariff code automatically to a motor or actuator.
What happened to the listed IEEPA duties?
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CBP CSMS 67834313, issued 22 February 2026, ended collection under the listed IEEPA actions from 24 February 2026. The notice leaves other duties, including Section 301 and Section 232, unaffected. The earlier Annex II discussion in this article is therefore superseded. Check current HTS and CBP instructions for any other authority that applies on the entry date.
Is 27.1% the current total duty?
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This article does not certify an all-in rate. Ask the broker to confirm the product code, origin, entry date, valuation, Chapter 99 provisions and applicable exclusions.
Does processing in another country remove the duty?
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Not automatically. Determine origin under the applicable rules and retain records for the actual processing route.
Can samples, drawback or FTZ use avoid duty?
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Eligibility depends on the applicable provision and facts. Obtain an entry-specific determination before relying on relief.
Send the drawing, destination and proposed shipment terms for a quotation. Confirm classification and import treatment with the importer’s customs broker.
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