What Customs Brokers Should Know About U.S. Russian Oil Tariff for India
The following analysis is provided by NCBFAA Legislative Advisor Nicole Bivens Collinson of Sandler, Travis & Rosenberg, P.A.
Sandler, Travis & Rosenberg, P.A. (ST&R), NCBFAA’s Customs Counsel and Legislative Advisor, has reviewed the Aug. 6 Executive Order (EO) imposing a tariff on India for importing Russian oil and explains what it means to customs brokers. While now it is only India, we do not know if additional countries may be subject as well.
President Trump on Aug. 6 issued an Executive Order citing the International Economic Emergency Powers Act (IEEPA) authority imposing an additional 25% tariff on India because it imports Russian oil and oil products. It is important to note that this is not an increase to the IEEPA Reciprocal tariff announced last week. This is a separate tariff imposed under IEEPA to address India’s imports of Russian oil and oil products. As such, we will refer to this tariff as the IEEPA Russian Oil tariff.
As of the effective date below, all goods from India will be subject to the MFN duty, any applicable antidumping or countervailing duty, Section 201 duty, the IEEPA Reciprocal duty (25%), and the IEEPA Russian Oil tariff (25%), unless an exemption applies.
IEEPA – Russian Oil Tariffs on India
A summary of the IEEPA Russian Oil tariffs is included below.
IEEPA authority based on a national security threat caused by Russia’s war with the Ukraine pursuant to Executive Order 10466.
RATE: 25% ad valorem IEEPA Russian Oil tariff
EFFECTIVE DATE: Effective 12:01 am ET on Aug. 27, 2025 (21 days after the issuance of the E.O.).
STACKABILITY: This 25% IEEPA Russian Oil tariff duty will be in addition to the 25% IEEPA Reciprocal tariff rate and any other duties applicable (e.g. MFN, ADD/CVD, etc.).
EXCEPTIONS
Goods In Transit:
Goods that are loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. ET on Aug. 27, 2025 (21 days after the date of the EO), AND are entered for consumption or withdrawn from warehouse for consumption before 12:01 a.m. ET on Sept. 17, 2025 will NOT be subject to the 25% additional IEEPA Russian Oil tariff duty upon entry into the U.S.
Goods subject to section 232 Duties:
Goods subject to Section 232 duties in effect, which currently includes, steel, aluminum, autos, auto parts, and copper, or established in the future, will NOT be subject to the 25% additional IEEPA Russian Oil tariff duty upon entry into the US.
Goods identified in Annex II of Executive Order 14257 (Reciprocal Tariffs):
Articles listed in Annex II to Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), as amended, will NOT be subject to the 25% additional IEEPA Russian Oil tariffs.
- Goods exempted under 50 U.S.C. 1702
Goods that are for personal use, donations of food, clothing and medicine intended to relieve human suffering, merely informational materials, etc., will NOT be subject to the 25% additional IEEPA Russian Oil tariff duty upon entry into the US.
FTZ Goods
Products admitted to an FTZ after 12:01 a.m. ET on Aug. 27, must be admitted in privileged foreign status
Goods eligible for admission to an FTZ under domestic status are exempt from the tariffs
Modification (Increase or Decrease)
INCREASE: If a country retaliates against US goods as a result of these tariffs, the President may increase or expand the scope of the tariffs.
DECREASE: If Russia or a country impacted by this order (India) is to address the international emergency, the President may decrease or limit the scope of the tariffs.
Duty Drawback
There is no express prohibition to claiming duty drawback on these tariffs.
Continued Monitoring
The Trump Administration will continue to monitor countries importing Russian oil and may expand the scope of coverage to other countries in the future.
CBP Guidance for Reciprocal Tariff Updates Effective Aug. 7
Customs and Border Protection (CBP) has provided update guidance to customs brokers and importers on the additional duties due on imported merchandise, pursuant to the International Emergency Economic Powers Act (IEEPA), as set forth in the Executive Order (EO) 14257, as amended. The July 31, 2025, EO, “Further Modifying the Reciprocal Tariff Rates” amends EO 14257 as follows.
Guidance
Application of Additional Duty Rates
Imported goods of the countries identified in Annex I to the EO, other than those that fall within the identified exceptions, entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on Aug. 7, 2025, are subject to the HTSUS classifications 9903.02.02 – 9903.02.71 and associated reciprocal tariffs, as added to the HTSUS by Annex II of the EO.
The reciprocal tariff for goods of the European Union is dependent on the Column 1/General duty rate applicable to the goods. For a good of the European Union with a Column 1 duty rate greater than or equal to 15%, the reciprocal tariff is zero and the entry must be filed under heading 9903.02.19. For a good of the European Union with a Column 1/General duty rate less than 15%, the sum of the Column 1/General duty rate and the reciprocal tariff shall be 15% and the entry must be filed under heading 9903.02.20.
CBP notes the July 31, 2025, EO, “Further Modifying the Reciprocal Tariff Rates” does not alter or affect EO 14298, “Modifying Reciprocal Tariff Rates to Reflect Discussion With the People’s Republic of China.” Goods of China, including Hong Kong and Macau, continue to be subject to the 10% reciprocal tariff under heading 9903.01.25.
Exemptions
The following HTSUS classifications apply to products that are exempted from the additional ad valorem duties imposed pursuant to the July 31, 2025, EO, “Further Modifying the Reciprocal Tariff Rates.”
In-Transit: Articles the product of any country that were (1) loaded onto a vessel at the port of loading and in transit on the final mode of transport prior to entry into the U.S. before 12:01 a.m. ET on Aug. 7, 2025, AND (2) are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on Aug. 7, 2025, and before 12:01 a.m. ET on Oct. 5, 2025, are subject to the 10% ad valorem reciprocal tariff and should be filed under heading 9903.01.25.
9903.01.26: Articles the product of Canada, including those products of Canada entered free of duty as under the United States-Mexico-Canada Agreement (USMCA), including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS. Articles properly classified in 9903.01.10 through 9903.01.15 should declare a secondary classification under 9903.01.26 to be exempted from the reciprocal tariff.
9903.01.27: Articles the product of Mexico, including those products of Mexico entered free of duty as under the United States-Mexico-Canada Agreement (USMCA), including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS. Articles properly classified in 9903.01.01 through 9903.01.05 should declare a secondary classification under 9903.01.27 in order to be exempted from the reciprocal tariff.
9903.01.29: Articles the product of any Column 2 rate country identified in general note 3(b); Belarus, Cuba, North Korea and Russia.
9903.01.30: Articles that are donations, by persons subject to the jurisdiction of the U.S., 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 (v)(ii) of note 2 to subchapter III of chapter 99 of the HTSUS.
9903.01.31: Articles 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.
9903.01.32: Articles of any country, classified in the headings and subheadings enumerated in subdivision (v)(iii) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS, as identified in Annex II and added to the HTSUS by Annex III of EO 14257, and as further clarified by the April 11, 2025 Presidential Memorandum, “Clarification of Exceptions Under Executive Order 14257 of April 2, 2025, as amended.” The only merchandise that is eligible for this exception is that which is properly classified in the HTSUS headings and subheadings listed subdivision (v)(iii) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS, as added by Annex II of EO 14257 and clarified by the linked Presidential Memorandum.
9903.01.33: 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, semi-finished copper and intensive copper derivative products, of any country, subject to Section 232 actions, that are properly classified in the HTSUS headings identified subdivision (v)(vi) through (v)(xi) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS, as added to the HTSUS by Annex III of EO 14257.
9903.01.34: For articles in which at least 20% of the value of article is U.S. originating, the U.S. content will not be subject to the reciprocal tariff. The reciprocal tariff will be assessed on the non-U.S. content.
Chapter 98
The additional duties imposed by the headings above shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS pursuant to applicable CBP regulations, and whenever CBP agrees that entry under such a provision is appropriate, except for the following instances.
The additional duties imposed by IEEPA Reciprocal tariffs apply to goods for which entry is properly claimed under Subchapter XIX, 9819, for Africa Growth and Opportunity Act (AGOA), Subchapter XX, 9820, for United States-Caribbean Basin Trade Partnership Act, and Subchapter XXII, 9822, for various other Free Trade Agreements. These additional duties also apply to goods for which entry is properly claimed under subheading 9802.00.80, as well as subheadings 9802.00.40, 9802.00.50, and 9802.00.60.
Goods for which entry is properly claimed under Subchapter XIII, 9813, for Temporary Importation Under Bond (TIB), will need to report the dutiable IEEPA Reciprocal HTSUS Chapter 99 number, along with the appropriate 9813 HTSUS number and 1-97 HTSUS number. No payment of the IEEPA duties will be required, as no duties will be assessed for compliant TIB filings. Reporting the IEEPA Chapter 99 number will ensure proper bonding, should the goods not meet the requirements of 9813, HTSUS.
Transshipment
Goods determined by CBP to have been transshipped to evade applicable IEEPA Reciprocal duties are subject to an additional ad valorem duty of 40 percent. CBP will direct a correction of the entry and/or entry summary to be filed, replacing the IEEPA Reciprocal HTSUS number with heading 9903.02.01 or take action upon liquidation to collect the 40% applicable duties. The 40% duties are in addition to any other applicable or appropriate fine or penalty, and any other duties, fees, taxes, extractions, or charges applicable to goods of the country of origin.
HTSUS Reporting Sequence
For entry summary lines that include multiple HTSUS numbers, CBP requires that the duty be appropriately associated to the correct HTSUS. For example, if the entry is subject to heading 9903.01.25, then the 10% percent duty must be associated to heading 9903.01.25 within the entry summary line when transmitting to ACE and when a printed 7501 is produced. The 10% duty must not be combined with the duty reported on a different HTSUS within the entry summary line. Further, duties across several required HTSUS numbers on a given entry summary line must not be combined and cannot be reported on only one HTSUS within the entry summary line.
For articles that have a U.S. content of at least 20% and are subject to heading 9903.01.34, the article must be broken up onto two entry summary lines to accurately report and pay the applicable rate of duty. The reciprocal tariff additional duty is to be reported based on the non-U.S. content. The first line will include the U.S. content while the second line will include the non-U.S. content. Each line should be reported in accordance with the instructions below.
For entry summary lines including multiple HTSUS numbers, the following sequence must be followed.
1. Chapter 98 number (if applicable)
2. Chapter 99 number(s) for additional duties (if applicable)
3. For trade remedies, if applicable
- first report the Chapter 99 number for Section 301,
- followed by the Chapter 99 number for IEEPA Fentanyl,
- followed by the Chapter 99 number for IEEPA Reciprocal,
- followed by the Chapter 99 number for Section 232 or 201 duties,
- followed by the Chapter 99 number for Section 201 or 232 quota
4. Chapter 99 number(s) for REPLACEMENT duty or other use, e.g., MTB or other provisions (if applicable)
5. Chapter 99 number for other quota (not covered by #3) (if applicable)
6. Chapter 1 to 97 number for the commodity tariff
The entered value of the commodity covered by the entry summary line should be reported on the Chapter 1-97 number, except if Chapter 98 reporting provisions require the entered value to be reported differently.
Refer back to CSMS # 64649265 – GUIDANCE – Reciprocal Tariffs, April 5, 2025 Effective Date and CSMS # 64680374 – GUIDANCE – Reciprocal Tariffs, April 5 and April 9, 2025, Effective Dates for further information. If you encounter any errors in filing an entry summary, contact your CBP Client Representative or the ACE Help Desk, while questions regarding this message should be directed to CBP at traderemedy@cbp.dhs.gov.
Guidance on European Union HTS Application of 9903.02.19/9903.02.20
The NCBFAA Customs Committee has put together this customs broker guidance on the European Union (EU) HTS application of 9903.02.19/9903.02.20 which is dependent on the Column 1/General duty rate applicable to the goods.
As per CSMS # 65829726 — GUIDANCE: Reciprocal Tariff Updates Effective Aug. 7, 2025, for European Union (EU):
For a good of the European Union with a Column 1 duty rate greater than or equal to 15%, the reciprocal tariff is zero and the entry must be filed under heading 9903.02.19.
For a good of the European Union with a Column 1/General duty rate less than 15%, the sum of the Column 1/General duty rate and the reciprocal tariff shall be 15% and the entry must be filed under heading 9903.02.20.
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Ad Valorem Equivalent Rate for specific or compound rate of duty:
As per Annex II:
“As provided in headings 9903.02.19 and 9903.02.20, for any good of the European Union subject to a specific or compound rate of duty under column 1-General, the ad valorem equivalent rate of duty of such good shall be determined by dividing the amount of duty payable under column 1-General by the customs value of the good. For example, if a good were subject to a specific duty of 50 cents per kilogram, and one kilogram of the good were entered with a customs value of $10, then the ad valorem equivalent rate of duty would be obtained by dividing 50 cents by $10, yielding 5 percent.”
Ad Valorem Equivalent Rate = Total Duty Paid on the Chapter 1-97 Line (Ad Valorem + Specific) divided by Entered Value
Below, which is provided by Customs and Border Protection (CBP), illustrates how the EU line should be entered for Reciprocal Tariff for Goods of the European Union.
Additional IEEPA Tariff Resources
The NCBFAA Customs Committee and Counsel of Sandler, Travis & Rosenberg, P.A., to assist our customs brokers members to navigate the IEEPA tariffs, has provided the following educational and informational documents:
IEEPA Reciprocal Tariffs In-Transit Duty Exemption Clause
The NCBFAA Customs Committee also continues to monitor Customs and Border Protection (CBP) FAQs pertaining to IEEPA tariff actions and provides these useful CBP webpages where you can find answers to your particular questions:
International Emergency Economic Powers Act (IEEPA) FAQs
IEEPA Reciprocal Tariff Reference Document (for informational purposes only)
EO 14257 Tariffs Sequence and Annexes (Courtesy of John S. James Co.)
IEEPA Tariff Background
President Trump on Saturday, Feb. 1, issued Executive Orders, under the authority of the International Emergency Economic Powers Act (IEEPA), to impose at midnight starting Feb. 4, 25% tariffs on imports from Canada (except energy products tariffed at 10%) and Mexico, and an additional 10% on imports from China. President Trump delayed the imposition of those tariffs, except for China, to March 4, after discussions with the leaders of Mexico and Canada. By Friday, Feb. 7, the President issued an amendment to his original executive order that allows Chinese goods to use de minimis until such time as the Department of Commerce notifies the President that “adequate systems are in place to fully and expediently process and collect tariff revenue applicable.”
On Feb. 10, President Trump announced 25% tariffs on certain steel and aluminum imports entering the U.S. Those tariffs took effect on March 12. The 25% duty rate applies to previously covered steel and aluminum products and derivatives including those produced in the previously excluded countries and on the new derivatives listed in the recently published steel and aluminum Annexes.
This tariff announcement was followed on Feb. 13 by President Trump’s announcement that the White House will commence a comprehensive investigation to determine “the equivalent of a reciprocal tariff with respect to each foreign trading partner” on other countries with existing tariffs on U.S. goods. The Office of the U.S. Trade Representative (USTR) on Feb. 20 announced that it seeks comments from the public regarding reciprocal tariffs, which are due by March 11.
On March 6, the President amended his IEEPA tariffs of 25% on Mexico and Canada. The effective date is 12:01 a.m. ET, March 7. Any Mexican or Canadian origin goods that qualify for free entry under the USMCA will not be subject to the additional 25% duties. In addition, potash from either country that does not qualify for duty free treatment under the USMCA will be subject to a 10% duty (in lieu of the 25% duty).
The White House Executive Order issued April 2 stated that all articles imported into the U.S. will be subject to an additional ad valorem rate of duty of 10 percent. The rates of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on April 5, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. ET on April 5 and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. ET on April 5 shall not be subject to such additional duty. President Trump on April 2 also signed an Executive Order to eliminate duty-free de minimis treatment for low-value imports from China, effective May 2 at 12:01 a.m. ET. On April 9, however, President Trump issued a 90-day pause on the reciprocal tariffs and lowered them to 10%.
President Trump on April 29 issued an Executive Order that most notably relieves automakers whose cars and light trucks are assembled in the U.S. from potentially facing stacked tariffs for auto part imports. The auto parts import tariffs were scheduled to take effect at 12:01 a.m. ET on May 3.
The U.S. and Chinese governments after meeting in Geneva, Switzerland, over the weekend of May 10-11 on Monday, May 12, announced a joint plan to begin deescalating tariffs, starting May 14. The statement said that both governments will be “moving forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect,” following the imposition of significant tariffs on each other’s products. The Trump Administration, which called the agreement an “historic trade win for the United States,” outlined in this May 12 fact sheet what both countries will do, while continuing negotiations over the next 90 days.
President Trump issued a proclamation ensuring that tariffs on aluminum and steel will increase from 25% ad valorem to 50% ad valorem effective 12:01 a.m. ET on June 4.
The Trump Administration on July 2 reached a trade deal with Vietnam in which goods imported into the U.S. will be subject to a 25% tariff and a 40% tariff if transshipped, while U.S. goods exported to Vietnam will be admitted with zero tariffs.
President Trump on July 7 authorized letters to be sent to numerous countries, stating that if suitable trade agreements are not reached by Aug. 1, then they will be subject to additional tariffs. The White House letters follow President Trump’s Executive Order issued April 2 which stated that articles imported into the U.S. from numerous countries will be subject to an additional tariff. On April 9, however, President Trump issued a 90-day pause, or July 9, on the tariffs. President Trump on July 9 Truth Social also said he will impose a 50% tariff on copper imports into the U.S. on Aug. 1 to stimulate domestic production.
The Trump Administration on July 15 reached a trade deal with Indonesia. The country has committed to purchasing $15 billion in U.S. energy products, as well as $4.5 billion in U.S. agricultural products and a commitment to buy 50 Boeing aircraft. Indonesian products entering the U.S. will be subject to a 19% tariff, and if these products are transshipped from a higher tariff country, then that tariff will be added to the tariff which Indonesia is paying.
Since mid-July 2025, the Trump Administrations announced trade deals with the European Union, South Korea, Japan, Thailand, Cambodia, the Philippines, and Pakistan in the run up to the Aug. 1 deadline for the reciprocal tariffs to take effect.
At 12:01 a.m. ET on Aug. 7, U.S. reciprocal tariff on numerous countries became effective. At the same time, a 25% additional tariff was imposed on Indian product imports into the U.S. on top of the 25% reciprocal tariff for India’s continued importation of Russian oil.
