Proclamation extends 2026 Israel ag TRQs duty-free and makes HTSUS technical fixes affecting FTA origin rules and certain Chapter 99 reciprocal tariffs.

REGULATORY BRIEFING – U.S. IMPORTS

1. What changed

a) Extension of Israel agricultural TRQs (duty‑free access)

• The President has implemented a further one‑year extension (calendar year 2026) of the United States–Israel agricultural agreement under the USIFTA framework.
• HTSUS Chapter 99, Subchapter VIII is modified to:
• Extend the operative period in U.S. note 1 from December 31, 2025 to December 31, 2026.
• Add 2026 quota quantities (in kg) to U.S. notes 3–7.
• Result: Specified quantities of certain agricultural products of Israel continue to enter the U.S. duty‑free under TRQs through 11:59 pm ET, December 31, 2026.

b) Technical corrections to HTSUS – USSFTA (Singapore)

• General note 25 (USSFTA rules of origin) is corrected:
• TCR 2 to Chapter 90: replaces erroneous "9901.90" with correct "9001.90".
• TCR 4(B) to Chapter 90: replaces erroneous "900.19" with correct "9003.19".
• These changes affect origin determinations for certain optical/precision instruments under the U.S.–Singapore FTA.

c) Technical corrections to HTSUS – USKFTA (Korea)

• General note 33 (USKFTA rules of origin) is corrected:
• TCR 1(A) to Chapter 88 is deleted.
• Former TCRs 1(B) and 1(C) are re‑lettered as 1(A) and 1(B).
• This cleans up a prior technical error in the tariff classification rule for Chapter 88 (aircraft and parts) under KORUS.

d) Technical correction – AGOA Chapter 98 reference

• U.S. note 2(b) to Subchapter XIX of Chapter 98 is modified by deleting the obsolete reference "and 9819.15.10".
• This aligns the note with the prior deletion of U.S. Note 5 and subheading 9819.15.10 (AGOA‑related provision) and removes a dead reference.

e) Technical corrections – Reciprocal tariff Chapter 99 headings (EU goods)

• Under Executive Order 14257 (reciprocal tariffs) and subsequent actions, headings 9903.02.74–9903.02.77 in Chapter 99 provide preferential treatment for certain EU goods relative to additional ad valorem duties.
• Two sets of conforming changes are made to the article descriptions of these headings to correct cross‑references to U.S. Note 2(v) to Subchapter III of Chapter 99:

1) Effective October 14, 2025:

• 9903.02.74: reference changed from "(xvi)" to "(xvii)".
• 9903.02.75: from "(xvii)" to "(xviii)".
• 9903.02.76: from "(xviii)" to "(xix)".
• 9903.02.77: from "(xix)" to "(xx)".

2) Effective November 1, 2025:

• 9903.02.74: reference changed from "(xvii)" to "(xix)".
• 9903.02.75: from "(xviii)" to "(xx)".
• 9903.02.76: from "(xix)" to "(xxi)".
• 9903.02.77: from "(xx)" to "(xxii)".
• These changes ensure that the headings correctly point to the intended explanatory subdivisions in U.S. Note 2(v) after new subdivisions were inserted by Proclamations 10976 and 10984.

2. Affected products and HTS references

a) Israel agricultural products (USIFTA – 2004 Agreement)

• Affected provisions: HTSUS Chapter 99, Subchapter VIII, U.S. notes 1 and 3–7.
• While the specific base HTS headings and product descriptions are not listed in the proclamation text, historically these notes cover TRQs for certain agricultural products of Israel (e.g., various cheeses, processed foods, and other agricultural items) under the 2004 U.S.–Israel agricultural agreement.
• For 2026, the following TRQ quantities are added:
• U.S. note 3: Calendar year 2026 – 466,000 kg
• U.S. note 4: Calendar year 2026 – 1,304,000 kg
• U.S. note 5: Calendar year 2026 – 1,534,000 kg
• U.S. note 6: Calendar year 2026 – 131,000 kg
• U.S. note 7: Calendar year 2026 – 707,000 kg
• These notes correspond to specific TRQ programs; importers must consult the HTSUS text of Subchapter VIII to identify the exact HTS subheadings and product descriptions tied to each note.

b) USSFTA – Chapter 90 products

• Affected provisions: General note 25, tariff classification rules (TCRs) for Chapter 90.
• Corrected references:
• TCR 2: now refers to heading 9001.90 (optical fibers, lenses, prisms, mirrors, etc., not elsewhere specified) instead of erroneous 9901.90.
• TCR 4(B): now refers to heading 9003.19 (frames and mountings for spectacles, etc., of materials other than plastics) instead of erroneous 900.19.
• Impact: Origin determinations for certain optical/precision instruments and frames under the U.S.–Singapore FTA must use the corrected heading references when applying the product‑specific rules of origin.

c) USKFTA – Chapter 88 products

• Affected provisions: General note 33, TCRs for Chapter 88 (aircraft, spacecraft, and parts).
• TCR 1(A) is deleted; former 1(B) and 1(C) are re‑lettered as 1(A) and 1(B).
• Impact: The applicable rule numbering for Chapter 88 origin determinations under KORUS changes; brokers and compliance teams must ensure they are using the updated TCR labels when documenting origin.

d) AGOA – Chapter 98 Subchapter XIX

• Affected provision: U.S. note 2(b) to Subchapter XIX of Chapter 98.
• Change: Removal of the reference to subheading 9819.15.10, which had already been deleted.
• Impact: Purely technical; no new benefits or restrictions, but removes an obsolete reference that could cause confusion in automated systems or legal review.

e) Reciprocal tariffs – EU goods under Chapter 99

• Affected provisions: HTSUS Chapter 99, Subchapter III, headings 9903.02.74, 9903.02.75, 9903.02.76, 9903.02.77.
• These headings relate to preferential treatment for certain EU goods with respect to additional ad valorem duties imposed under Executive Order 14257 (reciprocal tariffs addressing trade deficits).
• The article descriptions of these headings cross‑reference explanatory notes in U.S. Note 2(v) to Subchapter III of Chapter 99. The cross‑reference numbers are updated twice (effective October 14, 2025 and November 1, 2025) to align with new subdivisions added by Proclamations 10976 and 10984.

3. Rate changes and quantitative details

a) Israel agricultural TRQs – 2026

• Duty treatment: Duty‑free for eligible agricultural products of Israel entered under the specified TRQs.
• Time period: Entries for consumption, or withdrawals from warehouse for consumption, on or after 12:01 am ET January 1, 2026, and before 11:59 pm ET December 31, 2026.
• Quantities added for 2026:
• Note 3: 466,000 kg
• Note 4: 1,304,000 kg
• Note 5: 1,534,000 kg
• Note 6: 131,000 kg
• Note 7: 707,000 kg
• The proclamation does not change the duty rate (remains duty‑free within quota) but extends the period and sets new annual quota volumes for 2026.

b) Technical corrections – USSFTA, USKFTA, AGOA, reciprocal tariffs

• No new duty rate levels are introduced; changes are limited to:
• Correcting HTS heading numbers in rules of origin (no change to negotiated preference margins, but affects legal application).
• Deleting an obsolete reference (no rate impact).
• Correcting cross‑references in Chapter 99 headings (ensuring the correct scope of goods is covered by existing additional duties or preferences).

4. Effective dates

a) Israel agricultural TRQs (Annex I)

• Effective period for 2026 TRQs:
• From: 12:01 am Eastern Time, January 1, 2026
• To: 11:59 pm Eastern Time, December 31, 2026
• U.S. note 1 date change ("December 31, 2025" → "December 31, 2026") is effective for entries within this 2026 period.

b) Technical modifications (Annex II)

• General note 25 (USSFTA) corrections:
• Effective on the applicable date(s) set forth in Annex II (the proclamation text does not specify a different date, so these are effective per the proclamation’s implementation schedule; importers should treat them as effective on or after the proclamation’s effective date unless CBP guidance states otherwise).

• General note 33 (USKFTA) Chapter 88 TCR changes:
• Same as above – effective per Annex II implementation; apply to origin determinations for entries on or after the effective date.

• U.S. note 2(b) to Subchapter XIX of Chapter 98 (AGOA reference deletion):
• Effective per Annex II implementation date.

• Chapter 99 reciprocal tariff cross‑reference corrections:
• First set (paragraph E):
• Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Time, October 14, 2025.
• Second set (paragraph F):
• Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Time, November 1, 2025.

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

a) Israel agricultural imports (from Israel, under USIFTA agricultural agreement)

1) Confirm eligibility for 2026 TRQs

• Review HTSUS Chapter 99, Subchapter VIII, U.S. notes 3–7 to identify the specific HTS subheadings and product descriptions covered by each TRQ.
• Ensure products are:
• Originating in Israel under the applicable rules of origin; and
• Properly documented (certificates/origin statements as required under USIFTA and CBP regulations).

2) Update classification and entry procedures for 2026

• For entries on or after January 1, 2026 and before January 1, 2027:
• Use the appropriate Chapter 99 subheading(s) associated with the relevant U.S. note (3–7) to claim duty‑free treatment within quota.
• Monitor quota fill levels via CBP quota bulletins and ACE to avoid over‑quota entries (which may be subject to MFN or other applicable duties).

3) Systems and documentation

• Update internal HTS databases and broker instructions to reflect:
• New end date: December 31, 2026.
• 2026 quota quantities for each note.
• Ensure purchase contracts and landed cost models for 2026 shipments from Israel reflect continued duty‑free treatment within quota.

b) USSFTA – Singapore origin claims for Chapter 90 goods

1) Origin rule application

• For optical/precision instruments and related products under headings 9001.90 and 9003.19:
• Apply the corrected TCR references in General note 25 when determining whether goods qualify as originating under the USSFTA.
• Review any prior internal guidance or templates that referenced the erroneous headings (9901.90 or 900.19) and correct them.

2) Compliance review

• For high‑value or recurring imports under these headings, consider:
• Re‑validating supplier origin documentation using the corrected rules.
• Ensuring that any advance rulings or internal origin determinations are consistent with the corrected HTS references.

c) USKFTA – Korea origin claims for Chapter 88 goods

1) Update rule references

• Update internal origin determination tools and SOPs to reflect:
• Deletion of TCR 1(A) and re‑lettering of former 1(B) and 1(C) as 1(A) and 1(B).
• Ensure that any references in compliance manuals, training materials, or rulings to the old numbering are updated.

2) Audit and documentation

• For aircraft and parts imported under KORUS preferences:
• Confirm that the correct, updated TCR labels are used in origin analyses and documentation.

d) AGOA – Chapter 98 Subchapter XIX

• No change in substantive benefits, but importers and brokers should:
• Update HTS reference tables to remove the obsolete 9819.15.10 reference from U.S. note 2(b).
• Ensure that automated classification tools do not rely on the deleted subheading.

e) Reciprocal tariffs – EU goods under headings 9903.02.74–9903.02.77

1) Verify correct cross‑references

• For EU‑origin goods potentially subject to or benefiting from preferential treatment under these reciprocal tariff provisions:
• Confirm that the correct U.S. Note 2(v) subdivision (xix, xx, xxi, xxii, etc.) is applied based on the effective date of entry.

2) Date‑sensitive classification

• For entries on or after October 14, 2025 and before November 1, 2025:
• Apply the first set of cross‑reference corrections (e.g., 9903.02.74 → (xvii)).
• For entries on or after November 1, 2025:
• Apply the second set of corrections (e.g., 9903.02.74 → (xix)).
• Ensure that ACE and broker systems are updated to avoid misapplication of additional duties or preferences due to incorrect note references.

3) Contracting and pricing

• For EU suppliers and U.S. buyers where pricing depends on the application of these reciprocal tariffs or exemptions:
• Confirm that the correct Chapter 99 and note references are used in contracts and landed cost calculations.

6. References and source documents

• Proclamation: "To Implement the United States-Israel Agreement on Trade in Agricultural Products and for Other Purposes" (December 29, 2025), White House Presidential Actions.
• White House Presidential Actions archive: https://www.whitehouse.gov/presidential-actions/ (search by title and date).

• HTSUS (official text and updates):
• U.S. International Trade Commission (USITC): https://hts.usitc.gov/

• Related prior instruments referenced:
• USIFTA Implementation Act (Public Law 99-47).
• USSFTA Implementation Act (Public Law 108-78).
• USKFTA Implementation Act (Public Law 112-41).
• Executive Order 14257 (Regulating Imports With a Reciprocal Tariff...).
• Executive Order 14346 (Modifying the Scope of Reciprocal Tariffs...).
• Proclamations 7747, 8783, 9072, 8114, 8240, 8323, 10326, 10976, 10984.

Compliance teams should monitor CBP (https://www.cbp.gov) for any implementing instructions, quota bulletins, and CSMS messages that provide operational details on the 2026 Israel TRQs and the HTSUS technical corrections.