New EO authorizes additional ad valorem duties on U.S. imports from countries that supply oil to Cuba, effective Jan. 30, 2026.

REGULATORY BRIEFING – EXECUTIVE ORDER: ADDRESSING THREATS TO THE UNITED STATES BY THE GOVERNMENT OF CUBA

1. What changed

• The President issued an Executive Order (EO) on January 29, 2026, declaring a national emergency with respect to the Government of Cuba under IEEPA and the NEA.
• The EO establishes a new tariff system under which the United States may impose an additional ad valorem duty on goods imported from any foreign country that directly or indirectly sells or otherwise provides oil (crude oil or petroleum products) to Cuba.
• The EO does not itself set specific duty rates or identify HTS codes; instead, it creates a framework for future tariff actions to be implemented via determinations and subsequent regulatory notices.
• Effective date: 12:01 a.m. Eastern Standard Time, January 30, 2026.

2. Affected products

• The EO authorizes additional ad valorem duties on “goods imported into the United States that are products of any other country that directly or indirectly sells or otherwise provides any oil to Cuba.”
• At this stage, no specific HTS codes or product categories are named. The scope could, in principle, cover:
• All products of a designated country (broad country-wide surcharge), or
• Selected sectors or HTS subheadings from that country, as later defined by implementing actions.
• “Oil” is defined as crude oil or petroleum products. However, the additional duties are not limited to oil products; they may apply to any goods that are products of the offending country, as determined and recommended under the EO.
• “Indirectly” supplying oil includes sales through intermediaries or third countries where there is knowledge that the oil may be provided to Cuba, as determined by the Secretary of Commerce.
• Until Commerce and State issue implementing rules or Federal Register notices, there is no definitive list of affected HTS codes.

3. Rate changes

• The EO authorizes an “additional ad valorem rate of duty” but does not specify numerical rates.
• Key points:
• The additional duty is on top of existing MFN/Column 1, Column 2, Section 301, 232, 201, ADD/CVD, or other applicable duties.
• The rate and scope (which products, which HTS codes) will be determined case-by-case after:

1) The Secretary of Commerce finds that a foreign country directly or indirectly supplies oil to Cuba; and

2) The Secretary of State, in consultation with Treasury, Commerce, DHS, and USTR, recommends to the President whether and to what extent to impose additional duties.

• As of the EO’s issuance, there are:
• No specific percentage increases published.
• No Chapter 99 tariff provisions or HTS amendments yet identified.
• Importers should expect future notices that may, for example, impose an additional X% ad valorem duty on all products of Country A, or on specified HTS headings/subheadings from Country A.

4. Dates and process

• Effective date of EO authority: January 30, 2026, 12:01 a.m. EST.
• No sunset/expiration date is specified; the national emergency and tariff authority remain in effect until modified, terminated, or superseded.
• Process for triggering tariffs:

1) Monitoring: The Secretary of Commerce monitors whether foreign countries directly or indirectly supply oil to Cuba (ongoing obligation).

2) Finding: If Commerce determines that a foreign country directly or indirectly sells or otherwise provides oil to Cuba, Commerce must formally find so and inform the Secretary of State, including relevant information.

3) Recommendation: After an affirmative finding, the Secretary of State, in consultation with Treasury, Commerce, DHS, and USTR, determines whether and to what extent an additional ad valorem duty should be imposed on goods that are products of that country.

4) Presidential decision: If State recommends additional duties, State and Commerce submit their recommendation and finding to the President. The President then decides whether and to what extent to impose the additional ad valorem duty.

5) Implementation: State and Commerce are authorized to issue rules, regulations, guidance, and Federal Register notices to implement the President’s decision, including temporary suspension or amendment of regulations.

• Future key dates will be set by:
• Federal Register notices announcing specific country findings.
• Federal Register or Presidential actions specifying effective dates for new duties and any transition rules.

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

Immediate (policy and risk monitoring)

• 1) Identify exposure to potentially affected countries:
• Map current and planned imports by country of origin (not country of export) to identify significant sourcing from countries that are known or likely suppliers of crude oil or petroleum products to Cuba.
• Pay particular attention to countries with historical or current energy ties to Cuba.
• 2) Establish monitoring for implementing actions:
• Track Federal Register notices and agency guidance from:
• Department of Commerce (Bureau of Industry and Security and other relevant offices)
• Department of State
• Department of the Treasury (OFAC, if related sanctions measures are layered)
• U.S. Trade Representative (for any HTS/Chapter 99 implementation)
• CBP (CSMS messages, Cargo Systems Messaging Service, and updated guidance on duty collection and entry filing).
• Assign internal responsibility (trade compliance or customs team) to review and disseminate updates on any country findings and tariff decisions under this EO.

Pre-implementation planning (before specific tariffs are announced)

• 3) Contract and pricing review:
• Review purchase contracts and sales contracts for goods sourced from countries that may be implicated.
• Ensure contracts address responsibility for new or increased duties (e.g., duty escalation clauses, Incoterms alignment, price adjustment mechanisms).
• 4) Sourcing and supply chain contingency:
• Develop alternative sourcing options for critical products currently sourced from countries that may be designated under this EO.
• Evaluate feasibility and lead times for shifting production or sourcing to countries unlikely to be implicated.
• 5) Systems readiness:
• Ensure customs and ERP systems can accommodate new additional ad valorem duty lines (likely via new Chapter 99 provisions or special program indicators once published).
• Prepare to configure country-specific surcharges that apply across multiple HTS codes.

Once specific countries and rates are announced

• 6) Update classification and entry instructions:
• Incorporate any new Chapter 99 numbers or special indicators that CBP or USTR may establish to collect the additional duties.
• Update broker instructions to ensure:
• Correct country of origin is declared.
• Any additional duty lines are properly reported.
• Correct duty rates are applied from the effective date.
• 7) Financial impact assessment:
• Quantify incremental duty costs by HTS code and supplier for affected countries.
• Adjust pricing, margin, and budgeting assumptions to reflect the new duty burden.
• 8) Review and adjust supply chain:
• If duties are broad (e.g., all products of a country), consider accelerating or delaying shipments around effective dates where legally permissible and consistent with CBP rules.
• Reassess long-term contracts and consider renegotiation or diversification.

Compliance and governance

• 9) Governance and documentation:
• Maintain documentation of internal assessments and decisions related to this EO for audit and internal control purposes.
• Ensure senior management is briefed on potential exposure and contingency plans.
• 10) Coordination with sanctions/IEEPA compliance:
• Coordinate with sanctions compliance teams, as this EO is grounded in IEEPA and may be accompanied by related sanctions or restrictions.
• Ensure screening and due diligence processes consider any future lists or designations that may be associated with this Cuba-related national emergency.

6. Interaction with other trade measures

• The EO states that any inconsistent provisions of previous proclamations and Executive Orders are superseded to the extent of inconsistency, but it does not terminate existing Cuba-related sanctions or other national emergencies.
• Existing duties (MFN, Column 2, Section 301, 232, 201, ADD/CVD, safeguard measures) remain in place; the new duties will be additive.
• The EO explicitly allows the President to modify the order in response to:
• Retaliation by foreign countries; or
• Positive steps by Cuba or affected countries to address the national emergency and align with U.S. national security and foreign policy.
• Importers should be prepared for potential escalation or relaxation of duties over time, depending on geopolitical developments.

7. Key definitions relevant to import compliance

• “Oil”: Crude oil or petroleum products.
• “Indirectly”: Includes selling or providing oil to Cuba through intermediaries or third countries, with knowledge that such oil may be provided to Cuba, as determined by the Secretary of Commerce.
• “Cuba”: The territory of Cuba and any other territory or marine area (including EEZ and continental shelf) over which the Government of Cuba claims sovereignty, sovereign rights, or jurisdiction, where it exercises de facto control or derives benefit from economic activity under international arrangements.
• “Government of Cuba”: The Government of Cuba, any political subdivision, agency, or instrumentality, and any person owned or controlled by, or acting for or on behalf of, the Government of Cuba.

8. References and where to find further details

• Executive Order: “Addressing Threats to the United States by the Government of Cuba,” dated January 29, 2026; effective January 30, 2026.
• White House publication (when available): https://www.whitehouse.gov
• Federal Register EO text (when published): https://www.federalregister.gov
• Subsequent implementing actions (to be monitored):
• Department of Commerce regulations and guidance: https://www.commerce.gov and https://www.bis.doc.gov
• Department of State notices and guidance: https://www.state.gov
• U.S. Trade Representative (for HTS/Chapter 99 implementation): https://ustr.gov
• U.S. Customs and Border Protection (for operational and entry guidance, CSMS): https://www.cbp.gov and https://csms.cbp.dhs.gov

Action summary for trade compliance teams

• Immediately:
• Map import exposure by country of origin, focusing on countries that may supply oil to Cuba.
• Set up monitoring for Federal Register and agency notices implementing this EO.
• Short term (before specific tariffs are imposed):
• Review contracts, pricing, and sourcing strategies for at-risk countries.
• Prepare systems and broker instructions for potential new additional duty lines.
• Upon issuance of specific measures:
• Implement new duty rates and any Chapter 99 provisions in classification and entry processes.
• Reassess sourcing, pricing, and inventory strategies to mitigate increased duty costs.