The U.S. Customs and Border Protection (CBP) has released detailed instructions on the application of additional duties for imports from India, following an executive order issued earlier this month.
Tariff Implementation
Effective August 27, 2025, most imports originating from India will be subject to an additional 25% ad valorem duty. This applies to goods entered for consumption or withdrawn from warehouses on or after that date. The duties are in addition to those already in place under earlier reciprocal tariff actions, as well as existing taxes, fees, and antidumping or countervailing measures.
Exemptions
Certain categories are excluded, including:
Shipments already in transit before the August 27 deadline and entered before September 17.
Goods listed under previous executive order annexes outlining specific exceptions.
Select iron, steel, aluminum, copper, and automotive products already covered under other tariff headings.
Donations of food, clothing, and medicine intended for humanitarian use.
Informational materials such as publications, films, and digital media.
Foreign Trade Zones
Imports from India admitted into U.S. foreign trade zones after August 27 must be classified under “privileged foreign status.” This ensures duties will apply once the goods are entered for consumption, based on the tariff rates in effect at the time of admission.
Drawback Provisions
CBP confirmed that drawback claims—refunds of certain duties paid on re-exported goods—will be available for these additional tariffs.
Filing Requirements
CBP provided a hierarchy for reporting tariff classifications on entry summaries:
Chapter 98 (special provisions, if applicable)
Chapter 99 for additional duties (in order: Section 301, IEEPA, Section 232, Section 201 remedies or quotas)
Chapter 99 for replacement duties or other use (such as MTB provisions)
Commodity classifications under Chapters 1–97
CBP emphasized that entered values must be recorded under the base HTSUS classification unless Chapter 98 provisions specify otherwise.
