Indian exporters can avoid the United States' recent 50 percent tariff if they meet some conditions specified by US authorities. The move comes at a time when trade tensions are increasing and India's ongoing import of Russian oil is raising eyebrows in Washington because it sees the policy as indirectly assisting Russia's war effort against Ukraine, LiveMint reports. The higher duty, effective from 27 August 2025, will hit a wide range of Indian exports if the exemption conditions are not met.
The US Department of Homeland Security (DHS) explained that Indian-origin goods will not be charged with the raised tariff if the following conditions are met:
Pre-loaded shipments
Goods ought to have been exported on board and on the way to the US before 12:01 a.m. EDT on 27 August 2025, the DHS indicated. The requirement spares shipments already in transit before the tariff hike from being penalized, offering some relief to exporters handling outstanding contracts.
Warehouse entry on time
The second condition mandates that goods are entered for consumption or withdrawn from bonded warehouses by 12:01 a.m. EDT on 17 September 2025, creating a narrow compliance window for importers, sources cited by LiveMint reported. Missing this deadline would result in the full tariff being applied.
Use of special customs code
An in-transit exception can be invoked by importers who enter the HTSUS heading 9903.01.85 on shipping documents. DHS emphasized that failure to use the code would trigger the full 50 percent tariff.
Industry analysts quoted in LiveMint described that companies can cut through the short duration of the exemption period by undertaking careful planning of logistics, documentation, and customs adherence. Companies that move quickly and fulfill all requirements have the best hope of evading the additional duty imposed.
The regulations of DHS provide Indian exporters with a small but valuable window through which they can remain competitive in the US market despite the rise in tariffs. Exporters and importers are now occupied in ensuring deadlines are met and that all shipments under their trade interests comply with the new requirements.
