9903.74.02 Explained: MHDV Section 232 Bus and Truck Tariff

Key Points

• HTS code 9903.74.02 imposes an additional 10% duty on buses and certain trucks classified under HTSUS heading 8702 and nine subheadings of heading 8704, stacked on top of the regular column 1 rate.
• The 10% additional rate applies to entries on or after April 3, 2025, with no announced end date as of October 8, 2026.
• The program is the Section 232 medium- and heavy-duty vehicle (MHDV) measure, governed by U.S. note 38 to Chapter 99, subdivision (c).
• Nine subheadings are in scope: 8704.10, 8704.22, 8704.23, 8704.32, 8704.42, 8704.43, 8704.52, 8704.60, and 8704.90, all effective April 3, 2025 onward.
• Code 9903.74.02 is entered on a Chapter 99 line alongside the underlying Chapter 87 subheading; both lines must appear on the entry summary.

On this page

1. What 9903.74.02 is and which program created it
2. Affected products and HTSUS coverage
3. The additional rate and how it stacks
4. Effective date and applicability
5. How the code appears on a CBP entry
6. Interaction with other tariff provisions
7. What importers should do
8. Key references

HTS code 9903.74.02 is a Chapter 99 overlay code that adds a 10% Section 232 duty to buses and medium- and heavy-duty trucks covered by HTSUS heading 8702 and certain subheadings of heading 8704. The additional duty is stacked on top of whatever regular column 1 rate applies to the underlying Chapter 87 subheading. The measure took effect on April 3, 2025, and has no announced end date as of October 8, 2026. Every importer bringing in in-scope vehicles must report this code on every entry summary filed on or after that date.

The links in this article go to the primary documents: the proclamations, Federal Register notices, and official tariff schedule pages themselves. Read the source.

What 9903.74.02 is and which program created it

Code 9903.74.02 is part of the Section 232 medium- and heavy-duty vehicle (MHDV) program. The legal authority for the program is set out in U.S. note 38 to Subchapter III of Chapter 99 of the Harmonized Tariff Schedule. Specifically, subdivision (c) of that note describes the buses and other vehicles covered by this particular code.

Section 232 of the Trade Expansion Act of 1962 authorizes the President to impose import restrictions on articles that threaten to impair national security. The MHDV program applies that authority to a distinct class of commercial vehicles, separate from the passenger automobile and auto parts programs that operate under other Chapter 99 codes.

You can verify the official heading text, the applicable rate, and the legal note at the Harmonized Tariff Schedule maintained by the U.S. International Trade Commission. Confirm the current text of U.S. note 38 there directly, as notes can be amended.

Affected products and HTSUS coverage

The official heading text for 9903.74.02 reads: Buses and other vehicles classified in HTSUS heading 8702 as provided for in subdivision (c) of U.S. note 38 to this subchapter.

In practice, the code covers goods classified under the following nine subheadings, all with an effective start date of April 3, 2025, and no announced end date:

• 8704.10 - Dumpers for off-highway use
• 8704.22 - Motor vehicles for the transport of goods, diesel, GVW over 5 metric tons but not over 20 metric tons
• 8704.23 - Motor vehicles for the transport of goods, diesel, GVW over 20 metric tons
• 8704.32 - Motor vehicles for the transport of goods, spark-ignition, GVW over 5 metric tons
• 8704.42 - Electric motor vehicles for the transport of goods, GVW over 5 metric tons but not over 20 metric tons
• 8704.43 - Electric motor vehicles for the transport of goods, GVW over 20 metric tons
• 8704.52 - Other motor vehicles for transport of goods, other than electric or internal combustion, GVW over 5 metric tons but not over 20 metric tons
• 8704.60 - Other motor vehicles for transport of goods, not elsewhere specified, GVW not exceeding 5 metric tons (certain vehicles)
• 8704.90 - Other motor vehicles for the transport of goods

If your vehicle is classified under a subheading not on this list, 9903.74.02 does not apply. Confirm exact classification at hts.usitc.gov or with your licensed customs broker. The scope of the underlying Chapter 87 subheadings controls eligibility, so precise classification is essential before assuming the additional duty does or does not apply.

For context on how similar Section 232 tariffs apply to auto parts from specific countries, see our articles on 9903.94.67 Taiwan auto parts and 9903.94.63 South Korea auto parts.

The additional rate and how it stacks

The general column 1 rate for 9903.74.02 is: the duty provided in the applicable subheading + 10%.

This means the 10% is additive, not a substitute. An importer pays the normal column 1 general rate for the underlying Chapter 87 subheading first, and then the 10% Section 232 additional duty on top of it. The 10% is calculated on the customs value of the goods, the same base used for the underlying duty.

Illustrative stacking logic

If the column 1 general rate for a covered 8704.23 vehicle is, for example, free, the total rate of duty becomes 0% + 10% = 10%. If the column 1 rate is a non-zero percentage, that percentage and the 10% both apply. Confirm the base rate for your specific subheading in the current HTSUS before calculating landed cost.

Importers subject to other tariff overlays, such as Section 301 duties on Chinese-origin goods, should assess how all applicable Chapter 99 codes interact. CBP guidance governs whether and how different Chapter 99 codes may be combined on the same line. Confirm the stacking approach with your broker or at cbp.gov.

Effective date and applicability

The Section 232 MHDV measure, and specifically the applicability of 9903.74.02 to the nine subheadings listed above, became effective on April 3, 2025. All nine in-scope subheadings share that same start date. As of October 8, 2026, no end date has been announced for any of them.

Goods entered, or withdrawn from warehouse for consumption, on or after April 3, 2025, and classified under any of the nine covered subheadings are subject to the 10% additional duty. Goods entered before that date are not subject to the additional duty under this code.

Because no end date is currently published, importers should treat the additional duty as ongoing until an official notice announces otherwise. Monitor the Federal Register and CBP for any amendments to U.S. note 38.

How the code appears on a CBP entry

Chapter 99 overlay codes like 9903.74.02 are reported as a separate tariff line on the CBP entry summary (CBP Form 7501), riding alongside the underlying Chapter 87 classification line. The entry will show at minimum two lines for each in-scope shipment:

• Line 1: The Chapter 87 subheading (for example, 8704.23.0000) with its column 1 general rate and the dutiable value.
• Line 2: 9903.74.02 with the 10% additional rate and the same dutiable value.

The value is reported on the Chapter 87 line; the Chapter 99 line carries the additional duty rate. Brokers filing in ACE should follow current CBP instructions for reporting Section 232 overlay codes. Check cbp.gov for current CSMS messages governing the ACE reporting format for this program.

If you filed an entry without 9903.74.02 and the code was required, you may need to file a Post Summary Correction or protest. See our article on correcting HTS classification after entry for the procedural options.

Interaction with other tariff provisions

Importers of MHDV goods from Canada should be aware that separate Chapter 99 codes govern Canadian-origin motor vehicles under Section 338 measures. See our articles on 9903.03.14 Canada motor vehicles and 9903.03.15 Canada Section 232 exception for details on how those codes interact with this program. The facts block for 9903.74.02 is silent on country-specific exclusions, so confirm with your broker whether any country-specific treatment under U.S. note 38 applies to your imports.

For goods that may also be subject to Section 232 duties on steel and aluminum content (derivative products), review the applicable consolidated metal codes such as 9903.82.06. Whether derivative metal duties stack with vehicle-level Section 232 duties depends on CBP and USTR guidance; confirm the current position before filing.

The MHDV program under U.S. note 38 is specific to medium- and heavy-duty vehicles. It is distinct from the Section 232 passenger automobile program and auto parts programs that use other Chapter 99 codes. Do not conflate the two when classifying entries.

What importers should do

• Audit open and upcoming shipments. Identify every entry filed on or after April 3, 2025, that contains vehicles under subheadings 8704.10, 8704.22, 8704.23, 8704.32, 8704.42, 8704.43, 8704.52, 8704.60, or 8704.90, and verify that 9903.74.02 was reported and the 10% duty was paid.
• Correct missed entries promptly. If 9903.74.02 was omitted, file a Post Summary Correction before liquidation, or a protest after liquidation, as appropriate. Review the PSC, protest, and prior disclosure options to choose the right vehicle.
• Update landed cost models. Add the 10% additional duty to every cost model for covered MHDV imports with no end-date assumption; budget for it as an indefinite cost until an official notice terminates the program.
• Monitor for program changes. Subscribe to Federal Register alerts and CBP CSMS messages for any amendments to U.S. note 38, and re-check the HTSUS periodically for updates to the note text or rate.

Key references

• Harmonized Tariff Schedule of the United States (USITC) - Official source for HTS code 9903.74.02, U.S. note 38, and the underlying Chapter 87 subheading rates.
• U.S. Customs and Border Protection (cbp.gov) - CBP guidance, CSMS messages, and ACE filing instructions for Section 232 overlay codes.
• Federal Register (federalregister.gov) - Proclamations, executive orders, and notices establishing and amending the MHDV Section 232 program.
• White House (whitehouse.gov) - Presidential proclamations issued under Section 232 of the Trade Expansion Act of 1962.
• 19 U.S.C. 1862 - Trade Expansion Act Section 232 (Cornell LII) - The statutory authority for national-security tariff actions.
• CustomsGenius 2026 Tariff Code Overview - Broad reference for Chapter 99 overlay codes in the current tariff year.