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U.S.–INDIA TRADE RELATIONS: WHAT IMPORTERS SHOULD KNOW

On August 6, 2025, the President issued Executive Order 14329, titled “Addressing Threats to the United States by the Government of the Russian Federation.” This measure responds to escalating national security concerns linked to the Russian Federation’s actions in Ukraine and its facilitation via third-party oil distribution. To intensify economic pressure, an additional 25 percent ad valorem duty is imposed on imports originating from India that are directly or indirectly tied to Russian Federation oil.

Imposition:

Ad Valorem Rate: 25% - IEEPA Russian Oil Tariff

                (Separate and in addition to the Reciprocal Tariff)

Countries Affected: INDIA

Effective: August 27th, 2025

Exclusions & Transit Provisions

The duty does not apply to:

  1. Articles that were loaded onto vessel before August 27 and are in transit—provided they are entered for consumption or withdrawn by 12:01 a.m. EDT on September 17, 2025.

  2. Articles covered by Annex II of Executive Order 14257 (April 2, 2025)—i.e., those exempted under earlier reciprocal tariff rules.

  3. Article types excepted under 50 U.S.C. 1702(b) (i.e., certain national emergency exceptions).

  4. Articles classifiable under Chapter 98 provisions of HTSUS, where CBP determines those provisions apply—except chapters 9802 subheadings for which ad valorem duties do apply.

  5. Items admitted into a U.S. foreign trade zone (FTZ) after August 27, 2025, eligible for privileged foreign status, but still subject to the duty upon consumption entry.

  6. Drawback benefits remain available for the additional duties imposed.

Applicable HTSUS Code

  • The specific tariff classification for the additional duty is under Heading 9903.01.84, HTSUS:

    • 9903.01.84 – Additional 25 percent ad valorem duty on products of India (excluding specified exceptions).

  • Excluded subheadings include:

    • 9903.01.85 – In-transit goods eligible by September 17, 2025

    • 9903.01.86 – Goods identified in Annex II of EO 14257

    • 9903.01.88 – Humanitarian donations (food, clothing, medicine), unless otherwise disallowed.

  • FTZ processing values for subheadings 9802.00.40/.50/.60 and 9802.00.80 are still subject to duties on the India-origin portion.

 

 Please reach out to Management@Fleischer-chb.com with any questions regarding these changes or for guidance on compliance.

 
 
 

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