New 25% Section 301 duty on most products of Brazil via 9903.05.01 effective July 22, 2026, with defined Chapter 99 exemptions and Chapter 98/FTZ rules.

USTR has announced a new Section 301 action imposing a 25 percent additional ad valorem duty on most imports that are products of Brazil. CBP’s CSMS and the accompanying HTS list implement this via new Chapter 99 heading 9903.05.01 and related exemption headings 9903.05.02–9903.05.09.

Scope and effective date

• Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on July 22, 2026, most Brazilian-origin goods classified in Chapters 1–97 will incur an additional 25% duty under 9903.05.01.
• This 25% is in addition to normal MFN/column 1 duties, any ADD/CVD, and other applicable taxes and fees.

Core rule – 9903.05.01

• 9903.05.01 applies to all articles that are products of Brazil, classified in Chapters 1–97, except those specifically covered by 9903.05.02–9903.05.09.
• The additional rate is a flat 25% ad valorem.

Key exemptions and special provisions

1) In-transit exemption – 9903.05.02

• Covers Brazilian-origin goods that:

– Were loaded onto a vessel and in transit on the final mode of transit to the U.S. before 12:01 a.m. ET on July 22, 2026; and

– Are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. ET on July 29, 2026.

• These goods are exempt from the 25% duty but must still be properly classified and entered. Documentation of loading and transit timing must be retained.

2) Specific HTS exemptions – 9903.05.03

• 9903.05.03 exempts Brazilian-origin goods classified in a long list of HTSUS subheadings (provided in the PDF), including numerous meat, coffee, cocoa, petroleum, chemicals, rubber, wood, metals, electronics, semiconductors, and art items.
• For these HTS lines, the 25% duty under 9903.05.01 does not apply, though normal duties and any other remedies still do.

3) Religious and specialty products – 9903.05.04

• Exempts specific products of Brazil when meeting the described use and HTS classification, including:

– Etrogs (0805.90.01)

– Certain frozen tropical fruit (0811.90.80)

– Date palm/Myrtus branches and similar vegetable material for religious purposes (1404.90.90)

– Certain breads, pastries, wafers, and similar baked goods for religious purposes (1905.90.10, 1905.90.90)

– Acai and acai-based products (2008.99.21, 2009.89.70, 2009.90.40, 2106.90.99)

– Certain citrus juices (2009.31.60)

– Certain essential oils for religious purposes (3301.29.51)

• Filers must maintain documentation substantiating religious or other specified use.

4) Civil aircraft and parts – 9903.05.05

• Exempts Brazilian-origin civil aircraft (non-military), their engines, parts, components, subassemblies, and ground flight simulators and parts, provided they meet General Note 6 criteria and are classifiable in the listed HTS provisions.
• Applies regardless of whether the underlying HTS line has a “Free (C)” special rate. Supporting documentation of aircraft use and GN 6 eligibility must be retained.

5) Pharmaceutical-use articles – 9903.05.06

• Exempts Brazilian-origin articles for use in pharmaceutical applications, classifiable in an extensive list of HTSUS provisions (primarily chemicals, intermediates, and certain polymers and preparations).
• The exemption is use-based; importers must be able to substantiate pharmaceutical use.

6) Metals, vehicles, wood, semiconductors – 9903.05.07

• Exempts from 9903.05.01 the following Brazilian-origin items when they are already subject to other specific trade remedy headings:

– Aluminum, steel, copper, and derivative articles covered by 9903.82.02 and 9903.82.04–9903.82.26.

– Passenger vehicles and light trucks under various 9903.94 headings.

– Parts of passenger vehicles and light trucks under specified 9903.94 headings, including those subject to import adjustment offsets.

– Wood products under 9903.76.01–9903.76.03 and 9903.76.20–9903.76.24.

– Medium- and heavy-duty vehicles and buses under 9903.74.01–9903.74.03 and 9903.74.06.

– Medium- and heavy-duty vehicle parts under 9903.74.08–9903.74.10, including those subject to import adjustment offsets.

– Semiconductor articles under 9903.79.01.

• These items remain subject to their existing trade remedy duties but are not additionally hit by 9903.05.01.

7) Donations and informational materials – 9903.05.08 and 9903.05.09

• 9903.05.08: Exempts Brazilian-origin donations (food, clothing, medicine, etc.) by U.S.-jurisdiction persons intended to relieve human suffering.
• 9903.05.09: Exempts informational materials (publications, films, CDs, artworks, news feeds, etc.) of Brazilian origin.

Chapter 98 interaction

• The 25% duty under 9903.05.01 does not apply to goods properly entered under Chapter 98, except:

– 9802.00.40, 9802.00.50, 9802.00.60: the 25% applies to the value of repairs, alterations, or processing performed abroad.

– 9802.00.80: the 25% applies to the value of the assembled article abroad, less the cost or value of U.S. components.

• Brokers must ensure systems can calculate the 25% on the correct value component for these 9802 provisions.

Foreign Trade Zones

• Any Brazilian-origin product subject to the additional duty and admitted into a U.S. FTZ (other than goods eligible for domestic status) may only be admitted in privileged foreign status.
• This locks in the duty rate (including the 25% Section 301) at the time of admission for later entry into U.S. commerce.

HTSUS reporting sequence

• When filing entries with Chapter 98/99 claims, CBP prescribes the following order on each line:

1. Chapter 98 (if applicable)

2. Chapter 99 numbers for additional duties

3. For trade remedies: first Section 301 (including 9903.05.01–9903.05.09), then Section 122, then Section 232, then Section 201 duties, then Section 201 quota (if applicable)

4. Chapter 99 numbers for replacement duty or other use (e.g., MTB)

5. Chapter 99 numbers for other quotas (not covered by #3)

6. Chapter 1–97 commodity HTSUS

• Entered value should be reported on the Chapter 1–97 HTS line unless Chapter 98 rules require otherwise.

Practical compliance steps for brokers and importers

• Map all Brazilian-origin SKUs to determine whether they fall under 9903.05.01 or any exemption headings.
• Update broker instructions and internal SOPs to require use of 9903.05.01 for Brazilian-origin goods from July 22, 2026, unless a specific exemption applies.
• Implement controls to capture and retain documentation for:

– In-transit claims under 9903.05.02 (loading dates, transport documents, entry dates).

– Religious-use, pharmaceutical-use, civil aircraft, donation, and informational-material exemptions.

• Adjust FTZ admission practices to ensure Brazilian-origin goods subject to the duty are admitted as privileged foreign status.
• Coordinate with finance and sourcing to assess cost impacts and consider alternative sourcing or timing of shipments before the effective date.

This action is a major change: for most Brazilian-origin imports, brokers must add a 25% Section 301 duty via 9903.05.01 starting July 22, 2026, carefully applying the detailed Chapter 99 exemptions and Chapter 98/FTZ rules.