More tariffs for goods from India appear to be on the horizon. In another IEEPA action, the White House has proposed adding an additional 25% IEEPA tariff on Indian goods, in this instance relating to India’s importation of oil from Russia. The additional tariff will be effective August 27, but it does have an in-transit exemption for goods laden prior to August 27 and entered prior to September 17. Please note that the laden date is taken as the date the cargo was loaded onto the vessel on the last leg destined for the US, so for transshipped cargo, it is this date, not the export date from India, that matters. This is a short exemption window, considering the transit time from India.
The new tariffs will stack on the current 25% IEEPA reciprocal tariffs, making the effective IEEPA rate 50%. An exception is provided for goods on which a Section 232 tariff is collected. While other countries, including China, import oil from Russia, no action has been taken on any country other than India at this time. This could change, but the implementation date is growing near, and India does not seem to be making any moves to limit their imports of Russian oil. The Executive Order for this action can be viewed here.
Best Regards,
Sam McClure, LCB
Director of Compliance & Customs Services