On February 6, 2026, the President issued an Executive Order (E.O.) eliminating the additional 25% ad valorem duty on products imported from India, effective February 7, 2026, following a determination that India has aligned with U.S. national security interests by halting the import of Russian oil. Simultaneously, the White House announced a framework for a new Interim Agreement regarding reciprocal trade, which replaces the sanction duties with a new 18% reciprocal tariff on originating goods from India—including textiles, organic chemicals, and machinery—while establishing a roadmap for future market access and supply chain resilience.

Immediate Duty Elimination (Russian Oil Sanctions) Effective 12:01 a.m. EST on February 7, 2026, the United States has eliminated the additional 25% ad valorem duty on products imported from India.

• The additional duties were originally imposed under Executive Order 14329 due to India’s importation of oil from the Russian Federation. These duties are being eliminated because the President has determined that India has sufficiently aligned with U.S. national security interests by committing to stop these imports, agreeing to purchase U.S. energy products, and expanding defense cooperation. Consequently, HTSUS headings 9903.01.84 through 9903.01.89 are terminated effective February 7, 2026, with refunds for applicable duties to be processed via standard U.S. Customs and Border Protection procedures. To maintain this alignment, the Secretary of Commerce will strictly monitor the situation; if India resumes importing Russian oil, the Administration may recommend reimposing the 25% duty.

New Tariff Framework (Interim Trade Agreement) Simultaneous with the removal of the sanction duties, the U.S. and India have announced a framework for an “Interim Agreement” regarding reciprocal trade. This introduces a new tariff structure for U.S. importers:

• The Interim Agreement framework introduces a significant shift in tariff structure for U.S. importers by mandating a new 18% reciprocal tariff rate on originating goods from India. This tariff applies to a broad range of sectors, including textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, artisanal products, and certain machinery. However, the United States has indicated that it intends to eventually remove this reciprocal tariff on specific categories—namely generic pharmaceuticals, gems and diamonds, and aircraft parts—subject to the successful conclusion of the Interim Agreement.

Sector-Specific Tariff Adjustments – The Interim Agreement framework establishes targeted tariff modifications for specific industries. The United States will remove Section 232 tariffs—specifically those related to aluminum, steel, and copper—on certain aircraft and aircraft parts imported from India. For the automotive sector, India will receive a preferential tariff rate quota for automotive parts that were previously subject to Section 232 national security tariffs. Regarding the pharmaceutical industry, negotiated outcomes for generic drugs and ingredients are contingent upon the findings of a pending U.S. Section 232 investigation. Additionally, both nations have committed to significantly increasing

trade in technology products, with a specific focus on Graphics Processing Units (GPUs) and equipment used in data centers.

Export Commitments and Market Access – To expand market access for U.S. exporters, India has agreed to eliminate or reduce tariffs on all U.S. industrial goods and a wide range of agricultural products, including dried distillers’ grains, tree nuts, fresh fruit, soybean oil, and wine. India has also committed to

removing non-tariff barriers, specifically by addressing long-standing issues regarding U.S. medical devices and eliminating restrictive import licensing procedures for Information and Communication Technology (ICT) goods. Furthermore, India intends to purchase $500 billion in U.S. goods over the next

five years, covering energy products, aircraft, precious metals, technology products, and coking coal.

Customs and Border Protection Guidance

Products of India entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time on February 7, 2026, are no longer subject to the additional ad valorem duty rate of 25 percent imposed by EO 14329, “Addressing Threats to the United States by the Government

of the Russian Federation” signed on August 6, 2025. As a result, Harmonized Tariff Schedule of the United States (HTSUS) headings 9903.01.84-9903.01.89 are no longer in use as of February 7, 2026. The Reciprocal Tariffs 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, remain in effect for products of India that do not qualify for an exemption.

Correcting Previously Filed Entries

For any entries filed declaring HTSUS headings 9903.01.84 – 9903.01.89 that are entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time on February 7, 2026, filers should take action as necessary to correct those entries as soon as possible. For unliquidated entries for which estimated duties have already been deposited, importers may file a post summary correction (PSC) to request a refund. Upon PSC approval, the refund will be issued at liquidation. For liquidated entries, importers may request a refund by filing a protest within 180 days after liquidation in accordance with 19 U.S.C. 1514.

CBP full guidance may be found here.

JSC Compliance will continue to monitor and distribute updates when they become available. If you have any questions, please contact our JSC Compliance team.