USTR imposes a new 25% Section 301 duty on nearly all Brazilian imports via HTS 9903.05.01, with detailed product exemptions effective July 22, 2026.

This Federal Register notice is a Section 301 action that directly and immediately affects U.S. imports from Brazil.

Action and scope

The Trade Representative, under Sections 301(b), 301(c), and 304(a) of the Trade Act, and at the President’s direction, is imposing an additional 25% ad valorem duty on all imports that are products of Brazil. This is implemented through new HTSUS heading 9903.05.01 in subchapter III of chapter 99. The 25% is an extra duty on top of the normal MFN or special rate in the applicable HTS subheading and on top of any ADD/CVD or other duties.

Effective dates and transition

The additional duty applies to products of Brazil entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on July 22, 2026. A limited transition rule (9903.05.02) exempts Brazilian goods that (1) were loaded on the final mode of transit before 12:01 a.m. ET July 22, 2026, and (2) are entered or withdrawn for consumption before 12:01 a.m. ET July 29, 2026. Those qualifying entries pay only the base duty, not the extra 25%.

From July 31, 2026, the rule is amended so that patented pharmaceutical articles of Brazil classified in 9903.04.60–9903.04.66 are also exempted from the 25% via 9903.05.07.

Structure of the new Chapter 99 provisions

• 9903.05.01 – Default: all products of Brazil (except personal-use accompanied baggage and other specified exemptions) are subject to “duty in the applicable subheading + 25%”.
• 9903.05.02 – In-transit exemption for qualifying Brazilian goods entered by July 29, 2026.
• 9903.05.03 – Exempts a very large enumerated list of HTS subheadings (U.S. note 50(a)(ii)) from the 25% duty. These include, among others:

– Numerous meat and beef products (0201, 0202, 0206, 0210), fish and seafood (0302–0306), fruits and vegetables (07, 08, 09), cocoa, coffee, spices, and juices.

– Many wood and wood products (4403, 4407, 4408, 4409, 4412), stone products (6802.99.00), and certain woven articles.

– Metals and scrap (iron and steel waste and scrap, copper, nickel, zinc, tin, lead, aluminum, etc.), pig iron, and related base metals.

– Organic honey (0409.00.0005), various hides, furskins, leather, and other raw materials.

– A wide range of chemicals, petrochemicals, fertilizers, and pharmaceutical-related inputs.

– Certain electronics and semiconductor-related items, and various machinery and equipment.

– Antiques, collectibles, art (9701–9706), used clothing (6309.00.00), and some IT hardware and media.

• 9903.05.04 – Exempts specific niche products of Brazil (U.S. note 50(a)(iii)), including etrogs, certain frozen tropical fruits, religious-use plant materials and baked goods, acai products, certain citrus and coconut juices, and certain essential oils for religious purposes.
• 9903.05.05 – Exempts civil aircraft and related parts of Brazil that meet General Note 6 criteria and are classifiable in a long list of HTS provisions, regardless of whether they are entered under “Free (C)”.
• 9903.05.06 – Exempts articles of Brazil for use in pharmaceutical applications, covering a very broad list of chemical and polymer HTS codes (U.S. note 50(a)(v)), regardless of “Free (K)” status.
• 9903.05.07 – Exempts from the 25% duty certain Brazilian articles already covered by other Chapter 99 measures:

– Aluminum, steel, copper, and derivative aluminum/steel articles under 9903.82.02 and 9903.82.04–9903.82.26 (Section 232-type measures).

– Passenger vehicles and light trucks, and their parts, under specified 9903.94 headings, including those subject to import adjustment offsets.

– Medium- and heavy-duty vehicles and parts under 9903.74 headings.

– Wood products under 9903.76 headings.

– Semiconductor articles under 9903.79.01.

– From July 31, 2026, patented pharmaceutical articles under 9903.04.60–9903.04.66.

• 9903.05.08 – Exempts Brazilian-origin donations (food, clothing, medicine) by U.S. persons intended to relieve human suffering.
• 9903.05.09 – Exempts informational materials of Brazilian origin (publications, films, posters, records, photographs, microfilms, tapes, CDs, CD-ROMs, artworks, news wire feeds).

U.S. note 50 clarifies that:

• The 25% applies in addition to normal duties and any other Chapter 99 duties (except where specifically exempted).
• Products eligible for special tariff treatment (e.g., under trade agreements) or temporary duty reductions still pay the extra 25% unless exempted.
• Goods properly entered under most Chapter 98 provisions are exempt from the 25%; however, for 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80, the 25% applies only to the foreign value component (repairs/processing or assembled foreign content).
• Products remain subject to any applicable ADD/CVD.

Foreign trade zones

Any Brazilian product subject to the additional duty and admitted into a U.S. foreign trade zone on or after the effective date must be admitted in privileged foreign status (19 CFR 146.41). This locks in the duty rate, including the 25% additional duty, at the time of admission.

Practical impacts for importers and brokers

1) Origin screening: Any product of Brazil, regardless of HTS chapter, must be evaluated for the new 25% duty. Non-Brazilian goods are not affected by this action.

2) Classification and exemption checks: For each Brazilian SKU, confirm the HTS classification and check against:

– The long exemption list in U.S. note 50(a)(ii) (9903.05.03).

– The specific product exemptions in 50(a)(iii) (9903.05.04).

– Civil aircraft lists (50(a)(iv), 9903.05.05).

– Pharmaceutical-use lists (50(a)(v), 9903.05.06).

– Section 232/vehicle/wood/semiconductor/patented pharma lists (50(a)(vi), 9903.05.07).

– Donations and informational materials (9903.05.08–.09).

If an HTS code is on an exemption list and the product meets any stated use limitation (e.g., “for religious purposes only”, “for use in pharmaceutical applications”), the 25% does not apply.

3) Entry filing:

– For dutiable Brazilian goods: declare the normal HTS line plus secondary line 9903.05.01 and pay base duty + 25%.

– For exempt Brazilian goods: do not use 9903.05.01; instead, use the relevant exemption heading (e.g., 9903.05.03, .04, .05, .06, .07, .08, or .09) where required by CBP practice.

– For in-transit relief: for qualifying shipments, use 9903.05.02 and maintain documentation of loading and entry dates.

4) Chapter 98 and FTZ:

– For 9802 entries involving Brazilian processing, calculate the 25% only on the foreign value portion as specified.

– For FTZ admissions of Brazilian goods subject to the 25%, ensure privileged foreign status is used from the effective date.

5) Cost and sourcing decisions:

– Many Brazilian-origin goods not on the exemption lists (e.g., a wide range of manufactured goods, apparel, footwear, machinery, many chemicals not flagged as pharma-use, ethanol and other fuels, etc.) will now incur an extra 25% duty.

– Importers should reassess sourcing strategies, pricing, and contracts, and consider shifting to non-Brazilian suppliers where feasible.

6) Monitoring and future changes:

– USTR notes that actions may be modified under Section 307 if Brazil’s practices change or if the burden on U.S. commerce changes. Compliance teams should monitor for subsequent FR notices adjusting the Brazil Section 301 measures.

Given the breadth of coverage and the clear effective dates, this notice requires immediate operational changes for any importer or broker handling Brazilian-origin goods.