U.S. Customs and Border Protection (CBP) has issued a formal notice implementing a new 25% ad valorem duty on products of India. This action follows Executive Order 14329 and reflects the administration’s decision to address indirect imports of Russian oil through Indian supply channels. The measure modifies the Harmonized Tariff Schedule of the United States (HTSUS) to capture the expanded duty requirements and enforce compliance across multiple entry points.
WHEN DOES THE DUTY BEGIN?
The additional 25% duty applies to goods entered for consumption or withdrawn from warehouse starting 12:01 a.m. EDT on August 27, 2025. Shipments already loaded and in transit before that date can claim relief if entered by September 17, 2025, using the special heading 9903.01.85.
WHICH INDIAN IMPORTS ARE IMPACTED?
All Indian-origin articles are covered unless specifically exempted.
CBP’s notice introduces several new HTSUS headings:
-
9903.01.84: General application of the 25% duty.
-
9903.01.85: In-transit shipments eligible for temporary relief.
-
9903.01.86–9903.01.89: Special categories including Annex II exemptions, iron and steel, aluminum, passenger vehicles and parts, copper products, humanitarian donations, and informational materials.
WHAT ARE THE RULES FOR FOREIGN TRADE ZONES AND TRANSIT SHIPMENTS?
Articles entering a U.S. foreign trade zone (FTZ) after the effective date must be admitted in privileged foreign status, ensuring the duty applies when the goods enter U.S. commerce. Goods already in an FTZ under domestic status are not affected. Shipments loaded before August 27, 2025, may still qualify for relief if entered before September 17, 2025.
HOW DO OTHER DUTIES INTERACT WITH THIS TARIFF ON INDIA-ORIGIN GOODS?
This duty is layered on top of existing charges unless a higher rate applies under Section 232. Exemptions apply to specific goods identified in HTSUS note 2(z), including certain metals, vehicles, and copper products. Duties may stack where exclusions do not apply.
RELATED ARTICLE: WHITE HOUSE IMPOSES ADDITIONAL 25% IEEPA TARIFF ON IMPORTS FROM INDIA
WHAT STEPS SHOULD IMPORTERS TAKE NOW?
Importers should act immediately to ensure compliance:
-
Verify classifications under the new HTSUS headings.
-
Track shipping timelines for in-transit exemptions.
-
Prepare FTZ admissions under privileged foreign status.
-
Confirm whether any products qualify for exclusions or special provisions.
Stay up-to-date on freight news with Green’s Weekly Freight Market Update by following us on LinkedIn. For continuous updates, make sure to check out our website at greenworldwide.com.
