This is to inform you of an important interim development concerning U.S. import duties applicable to Indian exports, particularly in the gem and jewellery sector.
Termination of IEEPA-Based Reciprocal Tariffs
Pursuant to the Executive Order dated February 20, 2026 titled “Ending Certain Tariff Actions”, the additional ad valorem duties imposed under IEEPA, including the reciprocal tariff framework under Executive Order 14257 , “shall no longer be in effect” and are directed to be terminated as soon as practicable.
Accordingly, our understanding is that entries made on or after February 20, 2026 should not be subject to the earlier IEEPA-based reciprocal tariffs.
Interim Window Prior to Section 122 Surcharge
The separate Presidential Proclamation dated February 20, 2026 imposes a temporary 10% surcharge under Section 122 of the Trade Act of 1974, effective 12:01 a.m. EST on February 24, 2026.
Therefore, between: February 20, 2026, and before 12:01 a.m. EST on February 24, 2026, imports into the United States should be subject only to the ordinarily applicable HTSUS (MFN) rates, without the earlier reciprocal tariff and prior to the commencement of the Section 122 surcharge.
For products such as cut and polished diamonds (where the MFN rate is ordinarily 0%), this period represents a limited operational window.
Refund Position (If Collected in Error or due to implementation lag)
In the event that reciprocal IEEPA duties are nevertheless collected due to implementation lag, it is our understanding that such duties should be subject to refund through the standard U.S. Customs and Border Protection (CBP) protest mechanism under 19 U.S.C. §1514 or through post-summary correction procedures, as applicable. However, there is no assurance that the process will not be time consuming.
Important Caution
While GJEPC is actively engaging with U.S. customs authorities and keeping customs at Bharat Diamond Bourse informed, members are strongly advised to:
- Seek confirmation from their U.S. customs broker and trade counsel;
- Obtain written confirmation from their U.S. buyer/importer regarding entry treatment; and
- Confirm that CBP has ceased collection of the reciprocal tariff at the port of entry.
Given the evolving implementation environment, entry-level verification is critical.
Members are encouraged to carefully assess shipment timing, entry dates, and applicable HTS classification before dispatching consignments, in case they decide to do so.
We will continue to monitor developments closely and keep the trade informed.
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