*Updated August 1, 2025: CBP has issued CSMS # 65807735 - GUIDANCE – Additional Duties on Imports from Brazil

Guidance

Application of Additional Duty Rates

CBP said for goods that are products of Brazil, that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on Aug. 6, 2025, the following HTSUS classification and additional duty rate apply:

9903.01.77: All imports of articles that are products of Brazil, other than products classifiable under headings 99903.01.78-9903.01.83 and other than products for personal use included in accompanied baggage of persons arriving in the U.S., will be assessed an additional ad valorem rate of duty of 40%.

The additional duty provided for in 9903.01.77 applies in addition to the additional duty on products of Brazil imposed by EO 14257, “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits,” as amended, as well all other applicable duties (including antidumping and countervailing duties), taxes, fees, exactions, and charges, except for duties imposed pursuant to Section 232 of the 1962 Trade Expansion Act (Section 232 duties). The additional duty provided for in 9903.01.77 does not apply to products of Brazil that are subject to Section 232 duties.

Exemptions

The following HTSUS classifications apply to products that are exempted from the additional ad valorem duties imposed pursuant to the July 30, 2025 EO, “Addressing Threats to the United States by the Government of Brazil”:

9903.01.78: Articles the product of Brazil that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States, before 12:01 a.m. ET on Aug. 6, 2025; and (2) are entered for consumption or withdrawn from warehouse for consumption before 12:01 a.m. ET on Oct. 5, 2025.

9903.01.79: Articles the product of Brazil that are donations, by persons subject to the jurisdiction of the U.S., of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering, provided that the President has not made the determination for an exception from this exemption as provided in subdivision (x)(ii) of note 2 to subchapter III of chapter 99 of the HTSUS, which was added to the HTSUS by Annex II of the Executive Order.

9903.01.80: Articles the product of Brazil that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.

9903.01.81: Articles the product of Brazil, identified in Annex I of the Executive Order and classified in the subheadings enumerated in subdivision (x)(iii) of note 2 to subchapter III of chapter 99 of the HTSUS, which was added to the HTSUS by Annex II of the Executive Order. The articles subject to 9903.01.81 are products other than civil aircraft.

9903.01.82: Articles of civil aircraft (all aircraft other than military aircraft); their engines, parts, and components; their other parts, components, and subassemblies; and ground flight simulators and their parts and components, the product of Brazil, that otherwise meet the criteria of General Note 6 of the HTSUS, regardless of whether a product is entered under a provision for which the rate of duty “Free (C)” appears in the “Special” subcolumn, as identified in Annex I of the Executive Order.

9903.01.83:  Articles of iron or steel, derivative articles of iron or steel, articles of aluminum, derivative articles of aluminum, passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks and parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks, and semi-finished copper and intensive copper derivative products, the product of Brazil, as provided in subdivision (x)(v) through (x)(xi) of note 2 to subchapter III of chapter 99 of the HTSUS, which was added to the HTSUS by Annex II of the Executive Order. Specifically, consistent with subdivision (x)(v) through (x)(xi) of note 2 to subchapter III of chapter 99 of the HTSUS, as added to the HTSUS by Annex II of the Executive Order, the additional duties imposed by heading 9903.01.77 do not apply for such products that are provided for in headings 9903.81.87 through 9903.81.93, inclusive, and headings 9903.85.02, 9903.85.04, 9903.85.07, 9903.85.08, 9903.85.09, 9903.94.01, 9903.94.03, 9903.94.05, and 9903.78.01.

Chapter 98

According to the guidance, the additional duties imposed by heading 9903.01.77 will not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS pursuant to applicable regulations of CBP, and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed (in Brazil), as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in Brazil), less the cost or value of such products of the U.S., as described.

Foreign Trade Zone

Articles that are products of Brazil, excluding those encompassed by 50 U.S.C. 1702(b), except those that are eligible for admission to a foreign trade zone under “domestic status” as defined in 19 CFR 146.43, and are admitted into a U.S. foreign trade zone on or after 12:01 a.m. ET on Aug. 6, 2025, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41. Such articles will be subject, upon entry for consumption, to the duties imposed by this order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission into the U.S. foreign trade zone.

Drawback

Drawback is available with respect to the additional duties imposed pursuant to the July 30, 2025 EO, “Addressing Threats to the United States by the Government of Brazil”.

HTS Sequence

When submitting an entry summary in which a heading or subheading in Chapter 98 and/or 99 is claimed on imported merchandise, the following instructions will apply for the order of reporting the HTS on an entry summary line.

1. Chapter 98 (if applicable)
2. Chapter 99 number(s) for additional duties (if applicable)
3. For trade remedies,

• First report the Chapter 99 HTS for Section 301,
• Followed by the Chapter 99 HTS for IEEPA,
• Followed by the Chapter 99 HTS for 201 duties (if applicable) (232 is not applicable to the Brazil EO),
• Followed by the Chapter 99 HTS for Section 201 quota (if applicable).

1. Chapter 99 number(s) for REPLACEMENT duty or other use (i.e., MTB or other provisions)
2. Chapter 99 number for other quota (not covered by #3) (if applicable)
3. Chapter 1 to 97 Commodity Tariff

CBP said the entered value of the imported product reported on the entry summary line should be reported on the Chapter 1-97 HTS classification, unless Chapter 98 reporting provisions require the entered value to be reported differently.

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President Trump signed an Executive Order today, July 30, 2025, implementing an additional 40% tariff on Brazilian products, bringing the total tariff amount to 50%. This will be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET August 6, 2025.

The Trump Administration said its reason for the tariff increase is due to “recent policies, practices, and actions by the Government of Brazil that constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.”

Here is the Executive Order where the President lays out the new tariff.

See the White House Fact Sheet regarding this Executive Order here.

While this 40% tariff will have a significant impact on a number of imports from Brazil, there are several exceptions to the applicability of this tariff. Below is a summary of those exceptions and other significant details from the order:

Exceptions to the Tariff

Goods in transit that were loaded on to a vessel at the port of loading and in transit on the final mode of transit prior to 12:01 a.m. ET Aug. 6, AND were entered for consumption, or withdrawn from warehouse for consumption before 12:01 a.m. ET on Oct. 5, 2025, the tariffs will NOT apply.

Goods provided for in 50 U.S.C. 1702(b) , i.e. any postal, telegraphic, telephonic, or other personal communication; donations of food, clothing and medicine intended to relieve human suffering; merely informational materials; any transactions ordinarily incident to travel to or from any country, including importation of accompanied baggage for personal use.

Goods in Annex I, which includes a wide variety of goods such as silicon metal, pig iron, civil aircraft, Brazil nuts, orange juice, some energy products, wood pulps, certain paper, etc. (see link above for details and Annex).

Goods subject to section 232 actions, which would currently include steel, aluminum, autos & parts, and now copper (effective Aug. 1).

Stacking of tariffs

• The IEEPA reciprocal tariff will also apply to any goods subject to the new 40% rate for a total of 50% tariff above the MFN rate of due.

FTZ Goods

• Products admitted to an FTZ after 12:01 a.m. ET on Aug. 6, must be admitted as privileged foreign status.
• Goods eligible for admission to an FTZ under domestic status are exempt from the tariffs

Future Modifications (Increase or Decrease)

INCREASE

o  If a country retaliates against U.S. goods as a result of these tariffs, the President may increase or expand the scope of the tariffs.

DECREASE

o  If a country remedies the non-reciprocal trade arrangements, the President my decrease or limit the scope of the tariffs.

Duty Drawback

At this time, there is no express prohibition to claiming duty drawback on these tariffs.

Severability

If any provision of the E.O. is held to be invalid, the remainder of the order will remain in place and not be affected.

In addition, the Office of the U.S. Trade Representative (USTR) on July 15 initiated an investigation of Brazil under Section 301 of the Trade Act of 1974. The investigation will seek to determine whether acts, policies, and practices of the Government of Brazil related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference; intellectual property protection; ethanol market access; and illegal deforestation are unreasonable or discriminatory and burden or restrict U.S. commerce.

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