Additional Duties of 25% on US
Imports from India from Wednesday, 27 August along with 25% under Reciprocal
Tariff from 7 August
·
Raw
Material, Intermediates and Key Goods Exempted under Annex II of Executive
Order 14257 of April 2025
·
Gain
from Cheap Russia Oil went to Reliance and Nyara Loss on Trump Tariff Born by All
Exporters
Guidance
on Executive Order (EO) 14329
Issued on August 6, 2025:
EO 14329 – Additional Duties on Imports from India
Reason: India’s direct or indirect importation of oil from
the Russian Federation.
Legal Basis: International Emergency Economic Powers Act (IEEPA).
Effective Date: 12:01 a.m. EDT, August 27, 2025.
Application of Additional Duties
·
HTSUS 9903.01.84 → All imports that are products of India
(except exempted items) will face an additional 25% ad valorem duty.
·
Applies in addition to duties already
imposed under EO 14257, antidumping/countervailing duties, and other charges.
·
Excludes items for personal use in
accompanied baggage.
Exemptions (HTSUS 9903.01.85 – 9903.01.89)
1.
9903.01.85 – Goods in transit before Aug 27, 2025, and
entered before Sep 17, 2025.
2.
9903.01.86 – Goods listed in Annex II of EO 14257 (as amended
April 11, 2025).
3.
9903.01.87 – Certain iron, steel, aluminum,
passenger vehicles, light trucks, copper articles (already covered under other
HTS provisions).
4.
9903.01.88 – Humanitarian donations (food, clothing,
medicine), unless restricted by Presidential determination.
5.
9903.01.89 – Informational materials (publications, films,
artworks, news feeds, etc.).
Special Provisions
·
Chapter 98: Additional duties do not apply except for specific
subheadings (9802.00.40/50/60 and 9802.00.80), where duties apply to the value
of repairs/assembly done in India.
·
Foreign Trade Zones (FTZs):
o
Indian-origin goods must be admitted as “privileged
foreign status.”
o
Duties apply upon entry for consumption based on
classification at admission.
HTS Sequence Reporting Rules
When filing entry summary:
1.
Chapter 98 (if applicable).
2.
Chapter 99 (additional duties).
3.
Order for trade remedies:
o
Section 301 → IEEPA (EO 14329) →
Section 232 → Section 201 (if applicable).
4.
Chapter 99 replacement duty/MTB.
5.
Chapter 99 other quota.
6.
Chapter 1–97 commodity tariff classification.
·
Entered value reported under Chapter 1–97 HTS (unless Chapter 98
requires otherwise).
Next Steps
·
CBP will issue additional CSMS guidance to
clarify compliance.
In short: Effective Aug 27, 2025, the U.S. will impose an extra
25% tariff on nearly all imports from India under EO 14329, except specific
exempted categories (in-transit, listed exceptions, humanitarian goods,
informational materials, and certain industrial goods already covered by other
measures).
[ABS News Service/26.08.2025]
Executive Order (EO) 14329, “Addressing
Threats to the United States by the Government of the Russian Federation” signed
on August 6, 2025, was issued pursuant to the International Emergency Economic Powers
Act. This EO sets additional ad valorem duty
on imported articles of India, due to India’s direct or indirect importation of
oil from the Russian Federation. The purpose
of this message is to provide guidance on the additional duties on imports that
are the product of India.
GUIDANCE
APPLICATION OF ADDITIONAL DUTY RATES
For articles that are the product
of India, that are entered for consumption, or withdrawn from warehouse for consumption,
on or after 12:01 a.m. eastern daylight time on August 27, 2025, the following Harmonized
Tariff Schedule of the United States (HTSUS) classification and additional duty
rate apply under heading 9903.01.84:
All imports of articles that are products
of India, other than products classifiable under headings 9900.01.85 - 9900.01.89
and other than products for personal use included in accompanied baggage of persons
arriving in the United States, will be subject to an additional ad valorem rate
of 25%.
The duty rate specified in heading
9903.01.84, HTSUS, applies in addition to the additional duty on articles of India
imposed by EO 14257, “Regulating Imports with a Reciprocal Tariff to Rectify Trade
Practices That Contribute to Large and Persistent Annual United States Goods Trade
Deficits,” as amended, as well as all other applicable duties (including antidumping
and countervailing duties), taxes, fees, exactions, and charges, applicable to such
imports.
EXEMPTIONS
The following HTSUS headings apply
to products that are exempted from the additional ad valorem duties imposed by the
August 6, 2025, EO “Addressing Threats to the United States by the Government of
the Russian Federation”:
9903.01.85: Articles the products of India that (1) were loaded
onto a vessel at the port of loading and in transit on the final mode of transit
prior to entry into the United States, before 12:01 a.m. eastern daylight time on
August 27, 2025; and (2) are entered for consumption or withdrawn from warehouse
for consumption before 12:01 a.m. eastern daylight time on September 17, 2025.
9903.01.86: Articles the product of India, identified in Annex
II of Executive Order 14257, as amended by Presidential Memorandum, “Clarification
of Exceptions Under Executive Order 14257 of April 2, 2025, as amended” issued April
11, 2025.
9903.01.87: Articles of iron or steel, derivative articles
of iron or steel, articles of aluminum, derivative articles
of aluminum, passenger vehicles (sedans, sport utility
vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks
and parts of passenger vehicles (sedans, sport utility vehicles, crossover utility
vehicles, minivans, and cargo vans) and light trucks, and semi-finished copper and
intensive copper derivative products, of India, as provided in subdivision (z)(iii)
through (z)(ix) of note 2 to this subchapter. Specifically, the additional duties
imposed by heading 9903.01.84 do not apply for such products that are provided for
in headings 9903.81.87 through 9903.81.93, inclusive, and headings 9903.85.02, 9903.85.04,
9903.85.07, 9903.85.08, 9903.85.09, 9903.94.01, 9903.94.03, 9903.94.05, and 9903.78.01.
9903.01.88: Articles the product of India that are donations,
by persons subject to the jurisdiction of the United States, of articles, such as
food, clothing, and medicine, intended to be used to relieve human suffering, provided
that the President has not made the determination for an exception from this exemption
as provided in subdivision (z)(x) of note 2 to subchapter III.
9903.01.89: Articles the product of India that are informational
materials, including but not limited to, publications, films, posters, phonograph
records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks,
and news wire feeds.
CHAPTER 98
The additional duties imposed by heading
9903.01.84, HTSUS will not apply to goods for which entry is properly claimed under
a provision of Chapter 98 of the HTSUS pursuant to applicable regulations issued
by U.S. Customs and Border Protection (CBP), and whenever CBP agrees that entry
under such a provision is appropriate, except for goods entered under heading 9802.00.80;
and subheadings 9802.00.40, 9802.00.50, and 9802.00.60, HTSUS. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60,
HTSUS, the additional duties apply to the value of repairs, alterations, or processing
performed (in India), as described in the applicable subheading. For heading 9802.00.80, HTSUS, the additional
duties apply to the value of the article assembled abroad (in India), less the cost
or value of such products of the United States, as described.
FOREIGN TRADE ZONE
Articles that are products of India,
subject to the ad valorem duty imposed in section 2 of Executive Order 14329, except
those that are eligible for admission to a foreign trade zone under “domestic status”
as defined in 19 C.F.R. § 146.43, and are admitted into a United States foreign
trade zone on or after 12:01 a.m. eastern daylight time on August 27, 2025, must
be admitted as “privileged foreign status” as defined in 19 C.F.R. § 146.41. Such articles will be subject, upon entry for
consumption, to the duties imposed by this order and the rates of duty related to
the classification under the applicable HTSUS subheading in effect at the time of
admission into the United States foreign trade zone.
DRAWBACK
Drawback is available with respect
to the additional duties imposed pursuant to the August 6, 2025, EO “Addressing
Threats to the United States by the Government of the Russian Federation”.
HTS SEQUENCE
When submitting an entry summary in
which a heading or subheading in Chapter 98 and/or 99 is claimed on imported merchandise,
the following instructions will apply for the order of reporting the HTS on an entry
summary line.
1. Chapter 98
(if applicable)
2. Chapter 99
number(s) for additional duties (if applicable)
3. For trade
remedies,
o
First report the Chapter 99 HTS for Section 301,
o
Followed by the Chapter 99 HTS for IEEPA,
o
Followed by the Chapter 99 HTS for Section 232,
o
Followed by the Chapter 99 HTS for 201 duties (if applicable),
o
Followed by the Chapter 99 HTS for Section 201 quota
(if applicable).
4. Chapter 99
number(s) for REPLACEMENT duty or other use (i.e., MTB or other provisions)
5. Chapter 99
number for other quota (not covered by #3) (if applicable)
6. Chapter 1
to 97 Commodity Tariff
The entered value of the imported
product reported on the entry summary line should be reported on the Chapter 1-97
HTS classification, unless Chapter 98 reporting provisions require the entered value
to be reported differently.
CBP will provide additional guidance
to the trade community through CSMS messages as appropriate.