Proclamation extends 2026 TRQs for Israeli agricultural imports and makes multiple HTSUS technical corrections, including Chapter 99 remedies.

REGULATORY BRIEFING – U.S. IMPORT IMPACT

1. What changed

a) Israel agricultural TRQ extension (USIFTA)

• The United States–Israel 2004 Agreement on trade in agricultural products is temporarily extended again.
• Duty‑free access for specified quantities of certain Israeli agricultural products is continued through December 31, 2026.
• HTSUS Chapter 99, Subchapter VIII notes are amended to:
• Extend the program end date from December 31, 2025 to December 31, 2026.
• Add 2026 quota quantities (in kg) to U.S. Notes 3–7.

b) Technical HTSUS corrections – USSFTA (Singapore)

• General note 25 (USSFTA rules of origin) is corrected:
• TCR 2 to Chapter 90: "9901.90" is corrected to "9001.90".
• TCR 4(B) to Chapter 90: "900.19" is corrected to "9003.19".

c) Technical HTSUS corrections – 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).

d) Technical HTSUS correction – AGOA Chapter 98

• U.S. Note 2(b) to Subchapter XIX of Chapter 98 is amended to remove an obsolete reference to subheading 9819.15.10.

e) Technical HTSUS corrections – Reciprocal tariff/Chapter 99 remedies

• For the additional ad valorem duties imposed under Executive Order 14257 and modified by Executive Order 14346, the article descriptions for headings 9903.02.74–9903.02.77 in Chapter 99, Subchapter III are corrected to align with renumbered U.S. Note 2(v) subdivisions.
• Two sets of effective dates apply:
• October 14, 2025 corrections.
• November 1, 2025 corrections.

2. Affected products and HTS references

a) Israeli agricultural products under USIFTA TRQs

• The specific products are defined in Chapter 99, Subchapter VIII of the HTSUS (Israel agricultural TRQs). While the proclamation text does not list the base HTS headings, they historically include certain agricultural items (e.g., cheeses, processed foods, and other agricultural goods) eligible for duty‑free treatment within quota.
• Key HTS references:
• Chapter 99, Subchapter VIII (Israel agricultural TRQs).
• U.S. Notes 1, 3, 4, 5, 6, and 7 to Subchapter VIII.

b) USSFTA – Optical/precision instruments (Chapter 90)

• Rules of origin corrections affect classification‑based origin determinations for certain Chapter 90 goods under USSFTA preferences.
• Corrected HTS references in GN 25:
• 9001.90 (optical fibers, optical fiber bundles and cables, etc.).
• 9003.19 (frames and mountings for spectacles, goggles or the like, of other materials).

c) USKFTA – Aircraft and parts (Chapter 88)

• Rules of origin corrections affect certain Chapter 88 goods under USKFTA preferences.
• General note 33, TCR 1 to Chapter 88 is restructured (1(A) deleted; 1(B) and 1(C) re‑lettered), which may change how origin rules are read and applied for aircraft and parts.

d) AGOA – Chapter 98 provisions

• U.S. Note 2(b) to Subchapter XIX of Chapter 98 is updated to remove a reference to deleted subheading 9819.15.10.
• This is a clean‑up change but affects how the note is interpreted for AGOA‑related textile and apparel provisions.

e) Reciprocal tariff remedies – EU goods under Executive Order 14257

• Headings 9903.02.74–9903.02.77 in Chapter 99, Subchapter III apply to certain EU goods receiving preferential treatment with respect to additional ad valorem duties imposed under EO 14257.
• The headings cross‑reference explanatory notes in U.S. Note 2(v) to Subchapter III of Chapter 99. Due to prior insertions (timber/lumber and vehicle‑related measures), the subdivision numbering changed, and this proclamation corrects the cross‑references.

3. Rate and quantity changes

a) Israel agricultural TRQs – 2026 quantities

• The proclamation continues duty‑free treatment within quota; it does not change the in‑quota rate (remains duty‑free) but extends the time period and sets 2026 quota volumes.
• U.S. Note 1 to Subchapter VIII:
• Date change only: "December 31, 2025" → "December 31, 2026".
• U.S. Note 3 (TRQ 1 – product defined in the note):
• New 2026 quantity: 466,000 kg.
• U.S. Note 4 (TRQ 2):
• New 2026 quantity: 1,304,000 kg.
• U.S. Note 5 (TRQ 3):
• New 2026 quantity: 1,534,000 kg.
• U.S. Note 6 (TRQ 4):
• New 2026 quantity: 131,000 kg.
• U.S. Note 7 (TRQ 5):
• New 2026 quantity: 707,000 kg.

b) Duty rates

• In‑quota rate: duty‑free for eligible Israeli agricultural products under the specified TRQs.
• Out‑of‑quota rate: unchanged; remains the MFN/base rate applicable to the underlying HTS subheadings (importers must check the main HTS line for the specific product).
• No numerical change to the additional ad valorem duty rates under EO 14257; only cross‑reference corrections in the article descriptions of 9903.02.74–9903.02.77.

4. Effective dates

a) Israel agricultural TRQs (Annex I)

• Effective period for 2026 TRQs:
• From: 12:01 a.m. ET, January 1, 2026
• Through: 11:59 p.m. ET, December 31, 2026
• Applies to eligible agricultural products of Israel entered for consumption, or withdrawn from warehouse for consumption, within this period.

b) Technical corrections (Annex II)

• USSFTA and USKFTA rules of origin corrections; AGOA note correction:
• Effective on the applicable dates set forth in Annex II (the text provided does not specify separate dates, so these are understood to be effective as of the proclamation’s implementation date unless CBP/HTSUS publication specifies otherwise). Importers should verify in the official HTSUS release.

• Chapter 99 reciprocal tariff cross‑reference corrections:
• First set (after timber/lumber measure):
• Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET, October 14, 2025:

1) 9903.02.74: article description reference "(xvi)" → "(xvii)".

2) 9903.02.75: "(xvii)" → "(xviii)".

3) 9903.02.76: "(xviii)" → "(xix)".

4) 9903.02.77: "(xix)" → "(xx)".

• Second set (after medium/heavy vehicle measure):
• Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET, November 1, 2025:

1) 9903.02.74: "(xvii)" → "(xix)".

2) 9903.02.75: "(xviii)" → "(xx)".

3) 9903.02.76: "(xix)" → "(xxi)".

4) 9903.02.77: "(xx)" → "(xxii)".

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

a) Israel agricultural imports from Israel (USIFTA TRQs)

1) Update HTS/FTA logic

• Ensure internal classification and FTA engines reflect:
• Extended validity of Israel agricultural TRQs through December 31, 2026.
• Updated U.S. Notes 1, 3, 4, 5, 6, and 7 to Chapter 99, Subchapter VIII.
• Confirm that 2026 entries of eligible Israeli agricultural products are coded with the correct Chapter 99 TRQ provisions and that quota balances are monitored.

2) Quota management

• Coordinate with customs brokers to:
• File entries early in the quota period where quota fill is a concern.
• Monitor CBP quota bulletins for fill rates of the specific Israel TRQs.
• For entries exceeding TRQ quantities, budget for MFN/base duty rates.

3) Documentation

• Maintain origin documentation demonstrating Israeli origin as required under USIFTA and the 2004 Agreement (e.g., certificates or statements of origin, supplier declarations) to support use of the TRQ provisions.

b) USSFTA and USKFTA origin claims

1) Review origin determinations for Chapter 90 (USSFTA)

• For Singapore‑origin Chapter 90 goods relying on GN 25 TCRs:
• Confirm that any origin analyses referencing 9901.90 or 900.19 are corrected to 9001.90 and 9003.19.
• Re‑evaluate borderline cases where the incorrect references may have affected origin qualification.
• If necessary, consider post‑summary corrections (PSCs) or protests where the correction could support preferential treatment that was previously denied or not claimed.

2) Review origin determinations for Chapter 88 (USKFTA)

• For Korea‑origin Chapter 88 goods:
• Update internal references to GN 33 TCR 1 for Chapter 88 to reflect deletion of 1(A) and re‑lettering of 1(B) and 1(C) to 1(A) and 1(B).
• Ensure legal and classification teams use the updated numbering when interpreting rules of origin.

c) AGOA Chapter 98 usage

• Confirm that U.S. Note 2(b) to Subchapter XIX of Chapter 98 is applied without reference to deleted subheading 9819.15.10.
• Review any automated logic or templates that still reference 9819.15.10 and remove or update them.

d) EU goods subject to reciprocal tariffs (EO 14257) – Chapter 99 headings 9903.02.74–9903.02.77

1) Update Chapter 99 mapping

• Ensure that the article descriptions for 9903.02.74–9903.02.77 in your systems correctly reference the updated U.S. Note 2(v) subdivisions:
• For entries on or after October 14, 2025, but before November 1, 2025, use the first set of corrected references.
• For entries on or after November 1, 2025, use the second set of corrected references.

2) Validate applicability of additional duties

• For EU‑origin goods potentially covered by these headings:
• Confirm whether the product falls under the correct explanatory note subdivision in U.S. Note 2(v) as renumbered.
• Apply or exempt the additional ad valorem duty under EO 14257 accordingly.

3) Entry review

• For entries filed around the October 14 and November 1, 2025 transition dates:
• Review to ensure the correct version of the cross‑reference was applied.
• Where misapplication is identified, consider PSCs or protests to correct duty assessments.

6. Internal controls and system updates

• Classification databases:
• Update HTSUS references for GN 25 (Chapter 90), GN 33 (Chapter 88), Chapter 98 Subchapter XIX notes, and Chapter 99 Subchapters III and VIII.

• FTA/origin modules:
• Re‑load or validate USSFTA and USKFTA rules of origin tables to incorporate the corrected TCR references and numbering.

• Training and SOPs:
• Brief trade compliance, purchasing, and logistics teams on:
• The 2026 extension of Israel agricultural TRQs and associated quota volumes.
• The corrected Chapter 99 cross‑references for EU reciprocal tariffs.
• The technical corrections to USSFTA/USKFTA rules of origin.

7. 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 – Proclamations (search by title and date):

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

• Related prior proclamations and EOs (for context):
• USIFTA agricultural extensions: Proclamations 7826, 8334, 8467, 8618, 8770, 8921, 9072, 9223, 9383, 9555, 9687, 9834, 9974, 10128, 10326, 10509, 10692, 10875.
• USSFTA implementation: Proclamation 7747.
• USKFTA implementation and modifications: Proclamations 8783, 8771, 9072.
• AGOA‑related: Proclamations 8114, 8240, 8323, 10326.
• Reciprocal tariff framework: Executive Orders 14257 and 14346; Proclamations 10976 and 10984.
• Federal Register notice (EU preferential treatment under reciprocal tariffs): 90 FR 46136 (September 25, 2025).

• Official HTSUS (for updated legal text, notes, and Chapter 99 provisions):
• U.S. International Trade Commission (USITC) HTSUS:

https://hts.usitc.gov

Importers and brokers should rely on the updated HTSUS text and CBP guidance for final legal application and should adjust systems and procedures promptly to align with these changes.