The Office of the U.S. Trade Representative has announced final action under Section 301 of the Trade Act of 1974 imposing an additional 25% ad valorem duty on most products of Brazil. The duty will apply to covered goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on July 22, 2026. The new Chapter 99 heading for covered merchandise is 9903.05.01.
The action is broad: Brazilian-origin goods are covered unless they qualify for an exclusion or other special treatment identified in the notice. The notice establishes exclusions under HTSUS headings 9903.05.02 through 9903.05.09 and includes detailed product provisions in Annexes I and II. Some exclusions are subject to specific scope limitations, making accurate classification and product review essential.
USTR took this action following a Section 301 investigation into Brazilian measures involving digital trade and electronic payment services, preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation. USTR determined that certain Brazilian practices were unreasonable or discriminatory and burdened or restricted U.S. commerce.
Important Implementation Details
Additional duty exposure. The 25% Section 301 duty generally applies in addition to the normal HTSUS duty rate. Covered goods also remain subject to applicable antidumping duties, countervailing duties, taxes, fees, and other charges, subject to the notice’s specific exclusions and duty-interaction rules.
Limited in-transit exception. HTSUS heading 9903.05.02 provides a narrow exception for qualifying goods that were loaded onto a vessel at the port of loading and were in transit on their final mode of transit before 12:01 a.m. ET on July 22, 2026, provided the goods are entered for consumption or withdrawn from warehouse for consumption before 12:01 a.m. ET on July 29, 2026. Both conditions must be met.
Product exclusions. The notice excludes enumerated HTSUS provisions and certain categories of goods, including specified civil aircraft and parts, pharmaceutical-use products, goods covered by designated Section 232 headings, qualifying donations, informational materials, accompanied baggage, and other identified products. Importers should review the actual HTSUS provisions and applicable scope limitations rather than relying solely on general product descriptions.
Foreign-trade zones. Covered Brazilian-origin goods admitted into a U.S. foreign-trade zone on or after the effective date generally must be admitted in privileged foreign status, except for goods eligible for domestic status.
Who May Be Impacted?
Importers should immediately assess their exposure if they:
- Import merchandise of Brazilian origin.
- Have Brazilian-origin shipments scheduled to enter the United States on or after July 22.
- Hold Brazilian-origin merchandise in a bonded warehouse or foreign-trade zone.
- Have in-transit shipments that may or may not satisfy the limited transit exception.
- Purchase products that could fall within one of the notice’s exclusions or scope limitations.
- Have contracts, quotations, or pricing arrangements that do not account for an additional 25% duty.
Immediate Actions Recommended
Importers should:
- Identify Brazilian-origin products. Review active SKUs, purchase orders, inventory, and upcoming shipments, and confirm that supporting country-of-origin documentation is available.
- Validate HTSUS classifications. Compare each product’s 10-digit classification against the exclusions and scope limitations in Annexes I and II.
- Calculate total landed-cost exposure. Account for the new 25% duty together with ordinary customs duties, antidumping and countervailing duties, and other applicable tariffs or fees.
- Review in-transit and warehouse shipments. Confirm loading, transit, arrival, entry, and withdrawal dates and retain documentation supporting any claim under the transit exception.
- Coordinate with suppliers and customs brokers. Confirm origin, classification, valuation, entry timing, and the correct Chapter 99 reporting treatment.
- Review commercial agreements. Assess whether contracts, Incoterms®, pricing provisions, and duty-allocation clauses address the new tariff exposure.
- Evaluate lawful mitigation strategies. Consider alternative sourcing, supply-chain adjustments, pricing changes, and other duty-impact planning appropriate to the business.
Effective Dates
| Action | Effective date |
|---|---|
| Additional 25% Section 301 duty applies to covered Brazilian-origin goods | July 22, 2026, at 12:01 a.m. ET |
| Deadline for qualifying goods to be entered under the limited in-transit exception | Before July 29, 2026, at 12:01 a.m. ET |
How Buckland Can Help
Buckland’s Trade Compliance team is actively reviewing the USTR action and can assist with:
- Product coverage and exclusion reviews
- HTSUS classification and country-of-origin validation
- Chapter 99 reporting analysis
- Duty-stacking and landed-cost assessments
- In-transit, bonded warehouse, and foreign-trade zone reviews
- Customs entry and compliance support
- Supply-chain, sourcing, and duty-mitigation assessments
If your organization imports products of Brazilian origin, please contact your Buckland representative as soon as possible to determine whether your goods are affected and what actions should be taken before the effective date.
Buckland Global Trade Services will continue to monitor USTR and U.S. Customs and Border Protection guidance and provide updates as additional implementation details become available.
Official notice
View the USTR Federal Register Notice: Notice of Action—Brazil Section 301 Final Action (PDF)