Effective Feb. 7, 2026, the additional 25% ad valorem duty on all Indian-origin articles under HTSUS 9903.01.84–9903.01.89 is eliminated.

REGULATORY BRIEFING – U.S. IMPORT DUTIES ON PRODUCTS OF INDIA

1. What changed

• The President issued an Executive Order on February 6, 2026, modifying duties imposed in response to Russian Federation activities.
• The Order eliminates the additional 25% ad valorem duty that had been imposed on imports of articles of India under Executive Order 14329 (August 6, 2025).
• Effective 12:01 a.m. Eastern Standard Time on February 7, 2026:

– Products of India imported into the United States are no longer subject to the additional 25% ad valorem duty.

– HTSUS Chapter 99 headings 9903.01.84 through 9903.01.89 are terminated.

– Subdivision (z) of U.S. Note 2 to Subchapter III of Chapter 99 of the HTSUS is terminated.

• CBP is directed to process refunds of duties collected under these provisions in accordance with applicable law and standard CBP procedures.

2. Affected products

• Scope: “Products of India imported into the United States” that were subject to the additional 25% ad valorem duty under Executive Order 14329.
• The Executive Order references the following HTSUS Chapter 99 provisions, which are now terminated:

– 9903.01.84

– 9903.01.85

– 9903.01.86

– 9903.01.87

– 9903.01.88

– 9903.01.89

• These Chapter 99 provisions functioned as additional duty lines applied on top of the normal (Column 1) duty rates for underlying HTSUS classifications when the country of origin was India.
• The Order does not list specific base HTSUS headings; instead, it removes the across-the-board additional 25% duty on “imports of articles of India” as defined and implemented under EO 14329 and its associated HTSUS notes.

Examples of impacted trade (illustrative only – actual coverage depended on EO 14329 and HTSUS notes):

• Industrial and consumer goods of Indian origin that had been flagged with Chapter 99 numbers 9903.01.84–9903.01.89 at entry.
• Any Indian-origin merchandise where brokers/importers were instructed to declare one of these Chapter 99 provisions in addition to the base HTSUS classification.

3. Rate changes

• Additional duty rate change:

– Old rate: Additional 25% ad valorem duty on covered products of India (applied via HTSUS 9903.01.84–9903.01.89).

– New rate: 0% additional duty (i.e., the 25% surcharge is fully removed).

• Base MFN/Column 1 duty rates under the normal HTSUS headings remain unchanged; only the extra 25% Chapter 99 duty is eliminated.

4. Dates and timing

• Executive Order signed: February 6, 2026.
• Effective time for duty elimination:

– 12:01 a.m. Eastern Standard Time on February 7, 2026.

– Applies to goods “entered for consumption, or withdrawn from warehouse for consumption” on or after that time.

• Retroactivity and refunds:

– The Order states that, to the extent implementation requires refunds of duties collected, refunds shall be processed under applicable law and standard CBP procedures.

– The Order does not itself specify a retroactive effective date earlier than February 7, 2026; however, importers should monitor CBP guidance for any clarifications on refund eligibility (e.g., for entries on or after a specified date or for entries liquidated vs. unliquidated).

• Monitoring and potential reimposition:

– The Secretary of Commerce is tasked with monitoring whether India resumes directly or indirectly importing Russian Federation oil (as defined in EO 14329).

– If such imports resume, the Secretary of State and other senior officials must recommend whether the President should take additional action, including reimposing the 25% additional duty on imports of articles of India.

– No automatic snap-back is specified; any reimposition would require further Presidential action.

5. Required actions for importers, brokers, and compliance teams

A. Entry filing and classification

1) Stop using terminated Chapter 99 provisions

• Effective for entries and warehouse withdrawals for consumption on or after 12:01 a.m. EST, February 7, 2026:

– Do not declare HTSUS 9903.01.84, 9903.01.85, 9903.01.86, 9903.01.87, 9903.01.88, or 9903.01.89 on entries for products of India.

– Ensure ABI/ACE software and broker systems are updated to remove these Chapter 99 codes from any automated logic for Indian-origin goods.

2) Confirm base HTSUS classification and origin

• Continue to classify Indian-origin goods under the correct base HTSUS headings and apply the normal Column 1 duty rates.
• Verify that country-of-origin determinations for goods involving Indian processing are accurate, as the removal of the 25% duty may affect sourcing and structuring decisions.

B. Refunds and post-entry actions

3) Identify entries potentially eligible for refunds

• Compile a list of entries of Indian-origin goods where:

– A Chapter 99 code 9903.01.84–9903.01.89 was declared; and

– Additional 25% duties were paid.

• Prioritize:

– Unliquidated entries: Consider filing Post Summary Corrections (PSCs) to remove the Chapter 99 code(s) once CBP issues implementing guidance, if applicable.

– Recently liquidated entries: Evaluate the feasibility and deadlines for filing protests under 19 U.S.C. § 1514 to seek refunds, depending on CBP’s interpretation of refund eligibility.

4) Coordinate with customs brokers

• Instruct brokers to:

– Cease use of 9903.01.84–9903.01.89 on new entries as of the effective time.

– Provide reports of all entries where these Chapter 99 codes were used and duties paid.

– Assist in preparing PSCs or protests where appropriate.

5) Internal controls and documentation

• Update internal import compliance manuals, SOPs, and tariff databases to reflect:

– Termination of HTSUS 9903.01.84–9903.01.89 and U.S. Note 2(z) to Subchapter III of Chapter 99.

– New duty treatment for Indian-origin goods.

• Maintain documentation supporting any refund claims (commercial invoices, entry summaries, proof of origin, broker communications).

C. Strategic sourcing and contracts

6) Review sourcing and pricing

• Reassess landed cost models for Indian-origin products now that the 25% surcharge is removed.
• Consider whether previously deferred or diverted sourcing from India should be revisited.

7) Contractual adjustments

• Review purchase and sales contracts that:

– Allocated responsibility for the 25% additional duty; or

– Included duty escalation clauses tied to EO 14329 or Chapter 99 surcharges.

• Determine whether price adjustments, credits, or renegotiations are warranted in light of the duty elimination and any refunds.

D. Risk monitoring

8) Monitor for potential reimposition

• The Order explicitly contemplates possible reimposition of the 25% duty if India resumes importing Russian oil.
• Compliance teams should:

– Track future White House, USTR, and CBP announcements related to India and Russian oil.

– Be prepared to rapidly re-enable Chapter 99 coding and cost modeling if a new order reinstates additional duties.

6. References and source documents

• Executive Order: “Modifying Duties to Address Threats to the United States by the Government of the Russian Federation,” dated February 6, 2026.

– White House Presidential Actions page (Executive Orders):

https://www.whitehouse.gov/briefing-room/presidential-actions/

– Direct link (when available) typically in PDF/HTML from that page.

• Related prior Executive Orders:

– Executive Order 14024 (April 15, 2021): Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation.

https://www.whitehouse.gov/briefing-room/presidential-actions/2021/04/15/executive-order-blocking-property-with-respect-to-specified-harmful-foreign-activities-of-the-government-of-the-russian-federation/

– Executive Order 14066 (March 8, 2022): Prohibiting Certain Imports and New Investments With Respect to Continued Russian Federation Efforts To Undermine the Sovereignty and Territorial Integrity of Ukraine.

https://www.whitehouse.gov/briefing-room/presidential-actions/2022/03/08/executive-order-prohibiting-certain-imports-and-new-investments-with-respect-to-continued-russian-federation-efforts-to-undermine-the-sovereignty-and-territorial-integrity-of-ukraine/

– Executive Order 14329 (August 6, 2025): Addressing Threats to the United States by the Government of the Russian Federation (imposed the 25% duty on imports of articles of India).

(Access via the White House Presidential Actions archive: https://www.whitehouse.gov/briefing-room/presidential-actions/)

• HTSUS and Chapter 99 references:

– Harmonized Tariff Schedule of the United States (HTSUS):

https://hts.usitc.gov/

– Chapter 99, Subchapter III (for historical reference to 9903.01.84–9903.01.89 and U.S. Note 2(z)); note that these provisions are terminated as of February 7, 2026, and may be removed or annotated in future HTSUS editions.

7. Key takeaways

• The 25% additional ad valorem duty on imports of articles of India, implemented via HTSUS 9903.01.84–9903.01.89 under EO 14329, is eliminated effective 12:01 a.m. EST, February 7, 2026.
• Importers must stop using these Chapter 99 provisions on qualifying entries and should review past entries for potential duty refunds, following CBP guidance and statutory deadlines.
• While this is a significant reduction in duty burden on Indian-origin imports, companies should remain alert to the possibility of future reimposition tied to India’s conduct regarding Russian oil imports.