Brazil Section 301 25 Percent Grace Period Closes 12:01 AM ET July 29 2026: What T+7 Filings Look Like
The narrow in-transit exception on the Brazil Section 301 25 percent duty (HTSUS 9903.05.01) closes 12:01 AM ET July 29 2026. Any covered Brazilian-origin entry filed from that instant forward pays the full layer. This is the T+7 retrospective on how the first-week rollout has landed: exemption annex hits, Chapter 99 stacking with the July 24 forced-labor rule, and the operational lessons for Q3 planning.
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Open calculatorBrazil Section 301 25 Percent Grace Period Closes 12:01 AM ET July 29 2026: What T+7 Filings Look Like
The narrow in-transit exception on the Brazil Section 301 25 percent additional duty (HTSUS 9903.05.01) closes at 12:01 AM Eastern Time on July 29 2026. That is one week from the July 22 effective date and roughly 30 hours after the Section 301 forced-labor grace period ended on July 28.
Any covered Brazilian-origin entry filed from that instant forward pays the full 25 percent layer regardless of when the underlying vessel loaded. This is the T+7 retrospective on how the first-week Brazilian filings have landed and what to fix in the second week.
The two dates that matter
Importers keep conflating them. The clarification is simple:
July 22 2026 12:01 AM ET. The 25 percent additional duty on Brazilian-origin merchandise under Sections 301(b) and 304(a) of the Trade Act of 1974 becomes effective. Every entry filed from this instant forward on covered HS lines pays the layer.
July 29 2026 12:01 AM ET. The narrow in-transit exception closes. Vessels loaded before July 22 and entries filed before July 29 escape the layer under the exception. Any vessel loaded before July 22 that has NOT been entered by the July 29 cutoff pays the layer on the entry summary regardless.
If you have a Brazilian shipment on the water right now that was loaded pre-July-22 and not yet entered, tonight is the last usable moment to file the entry summary before the exception closes.
The Chapter 99 heading and the annex
HTSUS 9903.05.01 is the operative Chapter 99 heading. Every entry summary line on a covered Brazilian-origin product must include the 9903.05.01 heading alongside the underlying 8-digit classification.
The exemption annex published with the July 15 2026 USTR Final Action lists over 1,600 HTSUS subheadings. Roughly 430 of those are civil-aircraft carve-outs (chapter 88 lines and related maintenance parts) that were expected. The remaining 1,170-plus subheadings cover raw materials USTR classified as supply-chain-critical, agricultural inputs with limited domestic substitution, and pharmaceutical intermediates.
If your Brazilian import classifies to any annex-listed 8-digit code, the 25 percent Section 301 layer does not apply. Broker files without 9903.05.01. Do not defensively add the heading; adding it triggers the duty, and a PSC recovery cycle for over-filed duty costs 4 to 10 weeks and adds Section 592 exposure if CBP interprets the heading placement as intentional misclassification.
Brazil is NOT on the forced-labor country list
This is the point that has confused several broker teams in the first week.
The Section 301 forced-labor Final Action published July 24 2026 covers 60 economies split across three tiers: 17 Tier 1 at 10 percent, 38 Tier 2 at 12.5 percent (including China, India, Vietnam), and 5 Tier 3 with variable structure. Brazil is not on any of the three lists.
Practical consequence: Brazilian imports face the 25 percent Section 301 country-specific layer under 9903.05.01, but NOT the 10 or 12.5 percent forced-labor layer under 9903.05.20 through 9903.06.19. Do not add a forced-labor Chapter 99 heading to a Brazilian entry.
This is the sharp break with China (both layers stack: 25 percent country-specific under old 301 lists PLUS 12.5 percent forced-labor under new 301 forced-labor tier), Vietnam (List 4A partial plus 12.5 percent forced-labor), and India (12.5 percent forced-labor without a country-specific layer). Brazil sits in its own category.
Duty stack examples
Brazilian steel wire, HTSUS 7217.20, 100k USD CIF
| Layer | Rate | Amount (USD) |
|---|---|---|
| MFN | Free | 0 |
| Section 232 steel | 50% | 50,000 |
| Section 301 Brazil (9903.05.01) | 25% | 25,000 |
| MPF (capped) | 0.3464% | 634.90 |
| HMF | 0.125% | 125 |
| Total | 75,759.90 |
The 232 layer stacks fully. The 232 anti-stacking provision that shields Canadian steel from Section 338 does not apply to Brazil.
Brazilian orange juice concentrate, HTSUS 2009.11 (annex-listed)
| Layer | Rate | Amount (USD) |
|---|---|---|
| MFN | 11.4 cents/L (specific) | (varies by volume) |
| Section 301 Brazil (annex-exempt) | 0% | 0 |
| MPF (capped) | 0.3464% | (on entered value) |
| HMF | 0.125% | (on entered value) |
Annex exemption removes the 25 percent layer. Broker files without 9903.05.01.
Brazilian coffee green beans, HTSUS 0901.11 (annex-listed)
| Layer | Rate | Amount (USD) |
|---|---|---|
| MFN | Free | 0 |
| Section 301 Brazil (annex-exempt) | 0% | 0 |
| MPF (capped) | 0.3464% | (on entered value) |
Coffee green beans made the annex list, protecting the largest single Brazilian import line by value.
Brazilian civil aircraft parts, chapter 88 (annex-listed civil aircraft carve-out)
| Layer | Rate | Amount (USD) |
|---|---|---|
| MFN | Free (civil aircraft) | 0 |
| Section 301 Brazil (annex-exempt) | 0% | 0 |
Civil aircraft parts are on the 430-line carve-out list.
What T+7 broker filings actually show
Reviewing the July 22 to July 28 filing window on Brazilian-origin entries surfaces four consistent patterns.
Pattern 1: over-defensive 9903.05.01 filing on annex-exempt lines. Broker sees Brazilian origin, adds 9903.05.01 without checking the 8-digit annex. Result: overpaid 25 percent duty on lines that should be duty-free under the country-specific measure. PSC recovery available within 314 days of entry under 19 USC 1520.
Pattern 2: missing 9903.05.01 on covered lines. Broker missed the new heading on the second or third entry filed in the day. Result: underpaid duty exposure, protest cycle triggers within 180 days under 19 USC 1514 if CBP audits.
Pattern 3: inconsistent MPF calculation. Broker calculating MPF on a base that either includes or excludes the 25 percent layer inconsistently. MPF is calculated on entered value (invoice value plus certain additions), not on duty-inclusive value. Verify your broker's calculation basis.
Pattern 4: mistaken forced-labor stacking on Brazilian lines. Broker added a 9903.05.37 or 9903.06.xx forced-labor Chapter 99 heading to a Brazilian entry. Wrong: Brazil is not on the forced-labor list. Result: overpaid 10 or 12.5 percent on the wrong layer.
PSC opportunity window
For entries filed with the wrong Chapter 99 heading combination during the first two weeks, the Post Summary Correction path is the recovery mechanism. Timing:
- File PSC within 314 days of the entry date (19 USC 1520(c) equivalent under PSC procedures)
- Broker submits the PSC through ACE
- CBP reviews and processes within 60 to 90 days on straightforward corrections
- Refund cycle another 30 to 60 days after CBP approval
For a 100k USD CIF entry with an incorrectly filed 25 percent layer, the PSC recovery is 25,000 USD less any interest calculation. Materially worth chasing on any single entry above 20k USD CIF.
Second-week filing checklist
- Pull all Brazilian-origin entries filed July 22 through July 28. Every one. This is the audit set.
- Cross-check each entry line 8-digit HS against the exemption annex. Any hit means 9903.05.01 should not have been filed.
- Verify no forced-labor Chapter 99 headings were added. If found, PSC to remove.
- Confirm MPF calculation basis excludes the 25 percent duty amount.
- File PSCs where broker error is confirmed. Bundle by broker file number to simplify the CBP review process.
Where the litigation posture sits
Two lawsuits challenging the July 15 Presidential Memorandum invoking Section 301 for country-specific action have been filed with the Court of International Trade as of the last public docket check. Both seek preliminary injunctions on the 25 percent layer. Neither has been granted. Litigation risk is present but not resolved within the T+7 window.
Operational planning should treat the layer as durable through Q3 2026 regardless of litigation status. Any preliminary injunction would surface with public docket entry and prospective effect only; retrospective refunds require final merits ruling in importers' favor.
Q3 planning implications
Brazilian-origin sourcing is materially more expensive from July 22 forward. Two shifts to model in Q3 landed cost projections:
Substitution economics. Brazilian steel, aluminum, and coffee-adjacent lines now carry a 25 percent country premium. Substitution to non-Brazilian origins for the same product is attractive on lines not covered by other 2026 tariff regimes. India (12.5 percent forced-labor) is 12.5 points cheaper on comparable lines. Vietnam and China face similar or higher stacks.
Inventory pull-forward economics for annex-adjacent lines. For products classifying to codes that are borderline between annex and non-annex 8-digit HS, a formal CBP Form 19 CFR 177.1 classification ruling now carries much higher option value than in the pre-July-22 regime. Response time is typically 4 to 10 weeks, so a filing this week returns before the Q4 restock cycle.
Citations
- USTR Final Action July 15 2026: https://ustr.gov/about/policy-offices/press-office
- Presidential Memorandum July 15 2026: https://www.whitehouse.gov/presidential-actions/
- HTSUS 9903.05.01 (Brazil Section 301): https://hts.usitc.gov
- Troutman Pepper Locke analysis: https://www.troutman.com/insights/brazil-in-the-crosshairs-what-brazils-new-section-301-tariff-means-coming-july-22/
- Section 301 forced-labor final action July 24: https://ustr.gov/about/policy-offices/press-office/press-releases/2026/july/ustr-final-action-section-301-forced-labor
- 19 USC 1514 (protest window): https://www.law.cornell.edu/uscode/text/19/1514
- 19 USC 1520 (PSC and reliquidation): https://www.law.cornell.edu/uscode/text/19/1520
Frequently asked questions
What actually took effect July 22 and what closes July 29?
Two distinct dates. July 22 12:01 AM ET was the effective date of the Brazil Section 301 25 percent additional duty. July 29 12:01 AM ET closes the narrow in-transit grace window that let vessels loaded and in transit before July 22 land duty-free if entered before July 29. From July 29 forward, every covered Brazilian-origin entry pays the 25 percent layer regardless of when the vessel loaded.
What is the Chapter 99 heading for the Brazil layer?
HTSUS 9903.05.01. The heading is required on every entry summary line for covered Brazilian-origin merchandise. Filed alongside the underlying 8-digit HS classification and any other applicable Chapter 99 headings for stacked measures.
How does this stack with the July 24 forced-labor tier?
Brazil is NOT on the Section 301 forced-labor country list. Coverage lists (17 Tier 1, 38 Tier 2, 5 Tier 3) do not include Brazil. So Brazilian imports face the 25 percent Section 301 country-specific layer under 9903.05.01 but not the 10 or 12.5 percent forced-labor layer. This is the sharp break with China (both layers), Vietnam (both layers), and India (both layers).
How big is the exemption annex?
1,600+ HTSUS subheadings, including roughly 430 civil-aircraft carve-outs. Coverage is at the 8-digit level. If your Brazilian product HS classification lands on the annex, the 25 percent Section 301 layer does not apply.
What has the first week looked like operationally?
Broker filings across the July 22 to July 28 window show the classic patterns of a new rate rollout: inconsistent Chapter 99 heading placement, over-defensive filing on annex-exempt lines, and PSC opportunities emerging as classification errors surface. The forced-labor grace period closure on July 28 also blurred filing-error attribution because both measures cascaded on the same day.
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