The global trade landscape continues to evolve rapidly, presenting importers and supply chain leaders with fresh compliance and cost management challenges. On July 22, 2026, U.S. Customs and Border Protection (CBP) issued CSMS # 69302472, providing official implementation guidance on the Office of the United States Trade Representative’s (USTR) decision to impose 25 percent additional duties on imports from Brazil under Section 301 of the Trade Act of 1974.
At Sobel Network Shipping Co., Inc., our goal is to take the complexity out of trade policy shifts. Below is a clear breakdown of the new Section 301 tariffs, the specific products exempted from the 25% rate, and how your team should handle entry filings moving forward.
Key Takeaways at a Glance
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General Rule: All goods originating from Brazil entered for consumption (or withdrawn from warehouse for consumption) on or after 12:01 a.m. EST on July 22, 2026, are subject to an additional 25% ad valorem duty under HTSUS heading 9903.05.01.
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Cumulation: Section 301 duties apply in addition to any existing antidumping, countervailing, or standard duties and fees.
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Exemptions & In-Transit Relief: Specific product categories, pharmaceutical inputs, civil aircraft parts, and goods already in transit before July 22 may qualify for relief under headings 9903.05.02 through 9903.05.09.
Exemptions: Is Your Freight Excluded?
Importers can avoid or adjust the 25% additional duty if their shipments fall under specific exemption classifications:
1. In-Transit Exception (HTSUS 9903.05.02)
Products from Brazil are exempt from the 25% rate if:
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They were loaded onto a vessel at the port of loading and in transit on their final mode of transit before 12:01 a.m. EST on July 22, 2026, AND
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They are entered for consumption before 12:01 a.m. EST on July 29, 2026.
2. Specific Agricultural & Specialized Goods (HTSUS 9903.05.04)
Exemptions apply to specific items, including:
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Açaí and açaí preparations for beverage manufacturing
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Selected tropical fruits (frozen) and single citrus juices ( Brix value $\le 20$, excluding orange, grapefruit, lemon, lime)
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Coconut water and retail coconut water juice blends
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Etrogs, date palm/myrtus branches, essential oils, communion wafers, and bakery goods imported strictly for religious purposes.
Note for Filers: To claim religious or specific end-use exemptions, importers must maintain clear supporting documentation on file to substantiate intended use during a CBP recordkeeping audit.
3. Industrial, Health, and Material Exemptions
Additional specialized exclusions apply under specific headings:
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Civil Aircraft & Simulators (9903.05.05): Civilian aircraft, engines, parts, and ground flight simulators.
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Pharmaceutical Applications (9903.05.06): Articles designated for use in pharmaceutical applications.
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Metals, Vehicles, Wood & Semiconductors (9903.05.07): Articles of steel, aluminum, copper, passenger vehicles, light/heavy trucks, wood products, and semiconductor articles as detailed in subdivision (a)(vi) of U.S. note 50.
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Humanitarian & Informational Goods (9903.05.08 & 9903.05.09): Humanitarian donations (food, clothing, medicine) and informational materials (artwork, publications, films).
How Special Tariff Rules Apply
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Chapter 98 Provisions: Chapter 98 temporary imports or repairs generally bypass the 25% duty, except for subheadings under 9802 (repairs, alterations, and abroad assembly), where the 25% duty applies to the value added abroad.
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Foreign Trade Zones (FTZs): Effective July 22, 2026, subject goods admitted into a U.S. FTZ must be admitted under “privileged foreign status” (19 CFR 146.41), unless eligible for “domestic status.”
Required HTSUS Reporting Sequence
When submitting entry summaries involving Chapter 98/99 provisions, CBP requires strict adherence to line-item reporting order:
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Chapter 98 (if applicable)
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Chapter 99 numbers for additional duties
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Trade Remedies Order:
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First: Section 301
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Second: Section 122
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Third: Section 232
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Fourth: Section 201 duties
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Fifth: Section 201 quota
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Chapter 99 numbers for REPLACEMENT duty/other provisions
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Chapter 99 numbers for other quotas
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Chapter 1–97 Commodity Tariff (where entered value is reported)
How Sobel Network Shipping Can Help
Navigating shifting regulatory tariffs demands precision, meticulous recordkeeping, and proactive entry auditing. Misclassifying products or failing to maintain required end-use documentation can lead to costly delays or CBP penalties.
As your trusted customs brokerage and supply chain partner, Sobel Network Shipping Co., Inc. is here to review your Brazilian imports, ensure correct HTSUS sequencing, and help you leverage all eligible exclusions.
Have questions about how Section 301 duties impact your upcoming shipments? Reach out to our Customs Brokerage Team today.
