Additional Duties on Imports from Brazil
Guidance on additional duties for
imports from Brazil under the Executive Order (EO) issued July 30,
2025:
Effective
Date
·
Applies to goods entered for consumption or withdrawn
from warehouse on or after 12:01 a.m. EDT, August 6, 2025.
Additional
Tariff Details
·
HTSUS Code 9903.01.77:
o
40% additional ad valorem duty on most imports
from Brazil.
o
Imposed in addition to any other duties
(e.g., reciprocal tariffs under EO 14257, anti-dumping, countervailing duties),
except Section 232 duties.
Exemptions
from 40% Duty
|
HTSUS
Code |
Exemption
Description |
|
9903.01.78 |
Goods
in transit before Aug 6 and entered before Oct 5, 2025 |
|
9903.01.79 |
Humanitarian
donations (food, medicine, etc.) by U.S. persons |
|
9903.01.80 |
Informational
materials (e.g., media, artworks, publications) |
|
9903.01.81 |
Specific
non-aircraft items listed in EO Annex I |
|
9903.01.82 |
Civil
aircraft and parts, meeting General Note 6 of HTSUS |
|
9903.01.83 |
Iron,
steel, aluminum, vehicles, copper,
and parts as listed in specific HTS codes |
Chapter
98 Special Provisions
·
Exemptions allowed unless
goods are entered under:
o
9802.00.40, 9802.00.50, 9802.00.60: Duty
applies to value of work done in Brazil
o
9802.00.80: Duty applies to assembled
value in Brazil minus U.S. components.
Foreign
Trade Zones (FTZ)
·
Products of Brazil must be admitted as
"privileged foreign status".
·
Subject to 40% duty upon entry for U.S.
consumption.
Drawback
·
Allowed on the 40% additional duties.
HTSUS
Reporting Order
1.
Chapter 98 (if applicable)
2.
Chapter 99 (additional duties)
o
301 → IEEPA → 201 (not applicable here)
→ quotas
3.
Other relevant Chapter 99
4.
Chapters 1–97 (base classification)
Administrative
Notes
·
CBP to issue further guidance via CSMS messages.
The purpose
of this message is to provide guidance on the additional duties on imports that
are the products of Brazil, pursuant to the International Emergency Economic Powers
Act (IEEPA), as set forth in the Executive Order (EO), “Addressing Threats to the
United States by the Government of Brazil” issued on July 30, 2025.
GUIDANCE
APPLICATION OF ADDITIONAL DUTY RATES
For goods
that are products of Brazil, that are entered for consumption, or withdrawn from
warehouse for consumption, on or after 12:01 a.m. eastern daylight time August 6,
2025, the following Harmonized Tariff Schedule of the United States (HTSUS) classification
and additional duty rate apply:
9903.01.77:
All imports of articles that are products of Brazil, other than products classifiable
under headings 99903.01.78-9903.01.83 and other than products for personal use included
in accompanied baggage of persons arriving in the United States, will be assessed
an additional ad valorem rate of duty of 40%.
The additional
duty provided for in 9903.01.77 applies in addition to the additional duty on products
of Brazil 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 all other applicable duties (including antidumping
and countervailing duties), taxes, fees, exactions, and charges, except for duties
imposed pursuant to Section 232 of the Trade Expansion Act of 1962 (Section 232
duties). The additional duty provided for
in 9903.01.77 does not apply to products of Brazil that are subject to Section 232
duties.
EXEMPTIONS
The following
HTSUS classifications apply to products that are exempted from the additional ad
valorem duties imposed pursuant to the July 30, 2025 EO, “Addressing Threats to
the United States by the Government of Brazil”:
9903.01.78: Articles the product of Brazil 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 6, 2025; and (2) are entered for consumption or withdrawn from warehouse
for consumption before 12:01 a.m. eastern daylight time on October 5, 2025.
9903.01.79: Articles the product of Brazil 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 (x)(ii) of note 2 to subchapter III of chapter 99 of
the HTSUS, which was added to the HTSUS by Annex II of the Executive Order.
9903.01.80: Articles the product of Brazil 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.
9903.01.81: Articles the product of Brazil, identified in
Annex I of the Executive Order and classified in the subheadings enumerated in subdivision
(x)(iii) of note 2 to subchapter III of chapter 99 of the HTSUS, which was added
to the HTSUS by Annex II of the Executive Order. The articles subject to 9903.01.81 are products
other than civil aircraft.
9903.01.82: Articles of civil aircraft (all aircraft other
than military aircraft); their engines, parts, and components; their other parts,
components, and subassemblies; and ground flight simulators and their parts and
components, the product of Brazil, that otherwise meet the criteria of General Note
6 of the HTSUS, regardless of whether a product is entered under a provision for
which the rate of duty “Free (C)” appears in the “Special” subcolumn,
as identified in Annex I of the Executive Order.
9903.01.83: 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, the product of Brazil, as provided in subdivision (x)(v) through (x)(xi)
of note 2 to subchapter III of chapter 99 of the HTSUS, which was added to the HTSUS
by Annex II of the Executive Order. Specifically,
consistent with subdivision (x)(v) through (x)(xi) of note 2 to subchapter III of
chapter 99 of the HTSUS, as added to the HTSUS by Annex II of the Executive Order,
the additional duties imposed by heading 9903.01.77 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.
CHAPTER 98
The additional
duties imposed by heading 9903.01.77 will not apply to goods for which entry is
properly claimed under a provision of chapter 98 of the HTSUS pursuant to applicable
regulations of 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. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60,
the additional duties apply to the value of repairs, alterations, or processing
performed (in Brazil), as described in the applicable subheading. For heading 9802.00.80, the additional duties
apply to the value of the article assembled abroad (in Brazil), less the cost or
value of such products of the United States, as described.
FOREIGN TRADE ZONE
Articles that
are products of Brazil, excluding those encompassed by 50 U.S.C. 1702(b), except
those that are eligible for admission to a foreign trade zone under “domestic status”
as defined in 19 CFR 146.43, and are admitted into a United States foreign trade
zone on or after 12:01 a.m. eastern daylight time on August 6, 2025, must be admitted
as “privileged foreign status” as defined in 19 CFR 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 July 30,
2025 EO, “Addressing Threats to the United States by the Government of Brazil”.
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 201 duties (if applicable) (232 is not applicable to the
Brazil EO),
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.