Import Adjustment Offset
Essential Guide for Auto Suppliers
What Are Import Adjustment Offsets?
Companies supplying imported automotive parts to U.S. OEMs may be eligible to recover some of the Section 232 tariffs paid upon import. Currently, OEMs are submitting Import Adjustment Offset applications.
Key Requirement
For supplier eligibility to “decrement” your OEM’s Import Adjustment Offset (IAO) amount, your OEM customer must designate you as a supplier as part of its IAO application to the U.S. Department of Commerce.
Information You’ll Need to Provide
Core Documentation
- Importer of Record (IOR) number
- U.S. import entry values
- Tariff amounts paid or expected
Supporting Materials
- Entry summaries
- Invoices
- Previous tariff reimbursements
Important Note:
Suppliers are not required to provide cost structure or margin details unless your contract requires it. However, OEMs will have some insight into your margins based on purchase price and import values.
The 5-Step Process
Data Requests
Procurement and supply chain teams may contact you for import entry summary information.
Validation
Your data may be checked against sample CBP Form 7501s for accuracy.
Review of Price Increases
OEMs will determine if you’ve already adjusted prices to cover tariffs.
Refund Process
If eligible, you’ll be notified about the process and controls for potential refunds.
Ongoing Monitoring
OEMs will outline next steps for tracking and managing any adjustments.
Take Action Now
Your Action Items:
- Start conversations with your OEM customers about these changes
- Gather your import entry documentation
- Organize your tariff payment records
- Review existing contracts for cost structure requirements
- Prepare for data validation requests
Step-by-Step Action Plan
Phase 1: Immediate Assessment (Week 1-2)
Inventory Your OEM Relationships
List all U.S. OEMs you supply with imported parts and prioritize based on volume and tariff impact.
Gather Essential Documentation
Compile IOR numbers, import records, tariff calculations, and organize all supporting documents.
Review Existing Contracts
Check agreements for cost structure requirements and document existing price adjustments.
Phase 2: Outreach & Communication (Week 2-3)
Initiate Customer Conversations
Contact OEM procurement teams about IAO status and supplier designation process.
Prepare Your Data Package
Create standardized templates and tracking systems for ongoing tariff payments.
Phase 3: Implementation (Week 3-4)
Respond to Data Requests
Provide information promptly and maintain detailed submission records.
Establish Validation Procedures
Prepare for CBP form verification and implement quality control measures.
Phase 4: Ongoing Management
Monitor & Track Progress
Stay informed about application status and maintain regular OEM communication.
Prepare for Refunds
Understand refund procedures and set up internal reimbursement processes.
Plan for Future Cycles
Develop systems for ongoing participation and stay updated on policy changes.
Official Resources & Documentation
📋 Federal Register Notice
Import Adjustment Offset (IAO) Official Documentation
FR – June 13, 2025 (2025‑10740)
Download Official PDFThis document includes:
- Eligibility criteria for OEMs and suppliers
- Application procedures and required documentation
- Timeline requirements and deadlines
- Appeal processes and dispute resolution
- Ongoing compliance and reporting requirements
Stay Proactive
Being proactive can help you understand your role and prepare for any requests. The key to success lies in preparation, clear communication, and maintaining accurate documentation.