CBP Issues Guidance on New Section 301 Tariffs for Imports from Brazil

Katherine Vu
2 days ago
2 min read

U.S. Customs and Border Protection (CBP) has issued guidance following the Office of the U.S. Trade Representative's (USTR) decision to impose a 25% additional Section 301 tariff on most products imported from Brazil. The tariff applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on July 22, 2026.

HTSUS Classifications

CBP established several new Chapter 99 HTSUS classifications for these tariffs:

9903.05.01: Applies the 25% additional ad valorem duty to most products from Brazil.
9903.05.02: Exempts goods that were loaded onto a vessel and already in transit before July 22, 2026, provided they are entered before July 29, 2026.
9903.05.03–9903.05.09: Cover exemptions for certain products, including specifically listed HTSUS classifications, select food and religious use items, civil aircraft and aircraft parts, pharmaceutical products, certain aluminum, steel, copper, vehicle, wood, and semiconductor products, humanitarian donations, and informational materials.

Importers claiming an exemption must use the appropriate Chapter 99 HTSUS code and maintain documentation supporting their eligibility.

Chapter 98 Provisions

The additional Section 301 tariff generally does not apply to products properly entered under eligible Chapter 98provisions. However, exceptions exist for entries under 9802.00.80 and subheadings 9802.00.40, 9802.00.50, and 9802.00.60, where the additional duty applies only to the value of the foreign repairs, alterations, processing, or assembly performed abroad rather than the full value of the imported article.

Foreign Trade Zone (FTZ) Requirements

Products from Brazil that are subject to the new tariff and admitted into a U.S. Foreign Trade Zone (FTZ) generally must be entered under privileged foreign status, unless they qualify for domestic status. This ensures the applicable duty rate is preserved when the goods later enter U.S. commerce.

Entry Filing Requirements

When filing an entry summary, CBP requires HTSUS classifications to be reported in a specific order. If applicable, filers should report:

Any eligible Chapter 98 provision.
The applicable Chapter 99 tariff classification, including the Section 301 code.
Any additional Chapter 99 provisions for other trade remedies (such as Sections 122, 232, or 201).
Any replacement duty or quota provisions.
The standard Chapter 1–97 HTSUS classification.

The entered value should generally be reported under the Chapter 1–97 tariff classification unless Chapter 98 rules require otherwise.

Review

The new 25% tariff is in addition to any existing duties, including antidumping and countervailing duties. Importers should carefully review their HTSUS classifications, determine whether an exemption applies, retain all supporting documentation, and ensure entry summaries are filed using the correct Chapter 98 and Chapter 99 reporting sequence to remain compliant with CBP requirements.

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