Executive Summary
U.S. Customs and Border Protection issued guidance on November 14, 2025, implementing Executive Order provisions that exempt 237 agricultural product classifications and eleven special category agricultural items from reciprocal tariffs. Effective for goods entered or withdrawn from warehouse on or after 12:01 a.m. EST November 13, 2025, these exemptions require specific Chapter 99 subheading declarations and provide significant duty relief for agricultural importers. Importers who filed entries for affected products on or after November 13 should review entries for potential corrections to claim exemptions and obtain refunds.

Agricultural Product Exemptions from Reciprocal Tariffs: Implementation and Compliance Guide

(农产品互惠关税豁免：实施和合规指南)

1 · Executive Order and Regulatory Framework

The November 14, 2025, Executive Order titled “Modifying the Scope of the Reciprocal Tariff with Respect to Certain Agricultural Products” substantially expands agricultural product exemptions from the reciprocal tariff framework established in April 2025.

Reciprocal Tariff Background

Executive Order 14257: The reciprocal tariff framework was established by Executive Order 14257, issued April 2, 2025:

Original Framework:

• Title: “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits”
• Purpose: Imposing additional tariffs on imports from countries with significant trade surpluses with United States
• Rate Structure: Country-specific tariff rates based on trade deficit analysis
• Agricultural Treatment: Limited agricultural exemptions in original implementation

Annex II Exemptions:

• Exemption List: Annex II to Executive Order 14257 identifies products exempt from reciprocal tariffs
• Original Coverage: Initial exemptions included certain basic agricultural commodities
• Amendment Authority: Executive order permits modification of exemption list
• Implementation Method: Products listed in Annex II not subject to reciprocal tariff assessment

November 14, 2025 Expansion

Scope of Amendment: The November 14 executive order significantly expands agricultural exemptions:

Exemption Additions:

• 237 HTSUS Classifications: Specific Harmonized Tariff Schedule classifications added to exemption list
• Eleven Special Categories: Additional product categories defined by intended use or characteristics
• Effective Date: November 13, 2025, at 12:01 a.m. EST
• Annex II Addition: All exempted products added to Annex II of Executive Order 14257

Regulatory Implementation:

• HTSUS Modification: New subdivision (iii)(b) to U.S. note 2(v) to subchapter III of chapter 99 created
• Chapter 99 Structure: Utilizes temporary tariff provisions in Chapter 99 for exemption declarations
• CBP Guidance: CSMS #66814923 provides implementation guidance to trade community
• Entry Procedures: Specific subheading declarations required for claiming exemptions

2 · Exempted Product Categories and Classifications

Understanding which products qualify for exemptions requires examining both the 237 HTSUS classifications and the eleven special use categories.

237 HTSUS Classification Exemptions

Classification List: The November 14 executive order’s Annex I contains the complete list of 237 exempted HTSUS classifications:

Coverage Characteristics: While the complete list requires review of Annex I, exempted classifications typically include:

Agricultural Product Types:

• Fresh Produce: Various fruits and vegetables
• Processed Foods: Certain processed and prepared agricultural products
• Specialty Agricultural Items: Specific agricultural commodities with limited domestic production
• Food Ingredients: Certain ingredients used in food manufacturing

Classification Verification:

• Annex I Review: Importers must review Annex I to determine if specific products included
• Precise Classification: Product must be “properly classifiable” under exempted HTSUS number
• Classification Accuracy: Correct classification essential for claiming exemption
• Professional Assistance: Classification experts can assist with determination for complex products

Eleven Special Category Products

Use-Based Exemptions: Eleven product categories qualify for exemption based on intended use or specific characteristics:

Religious Use Products:

1. Etrogs

• Classification: Subheading 0805.90.01
• Description: Citrus fruit used in Jewish religious observances
• Use Requirement: Religious purposes

2. Date Palm Branches, Myrtus Branches, or Other Vegetable Material

• Classification: Subheading 1404.90.90
• Description: Vegetable material for religious purposes only
• Documentation: Must substantiate religious use

3. Religious Baked Products - Category 1

• Classification: Subheading 1905.90.10
• Description: Bread, pastry, cakes, biscuits and similar baked products, and puddings (whether or not containing chocolate, fruit, nuts or confectionery) for religious purposes only
• Use Limitation: Religious purposes only

4. Religious Bakers’ Wares - Category 2

• Classification: Subheading 1905.90.90
• Description: Communion wafers, empty capsules suitable for pharmaceutical use, sealing wafers, rice paper and similar products for religious purposes only
• Specific Items: Includes communion wafers and related religious items

5. Essential Oils

• Classification: Subheading 3301.29.51
• Description: Essential oils other than those of citrus fruit, nesoi, for religious purposes only
• Use Requirement: Religious purposes only

Acai-Related Products:

6. Acai Fruit

• Classification: Subheading 2008.99.21
• Description: Acai in various preserved forms

7. Coconut Water or Juice of Acai

• Classification: Subheading 2009.89.70
• Description: Beverage products containing acai juice

8. Acai Beverage Preparations

• Classification: Subheading 2106.90.99
• Description: Preparations for manufacture of beverages containing acai

Other Specialty Products:

9. Tropical Fruit, Frozen

• Classification: Subheading 0811.90.80
• Description: Tropical fruit nesoi, frozen, whether or not previously steamed or boiled

10. Citrus Juice Concentrate

• Classification: Subheading 2009.31.60
• Description: Citrus juice of any single citrus fruit (other than orange, grapefruit or lime), Brix value not exceeding 20, concentrated, unfermented, except lemon juice

11. Coconut Water

• Classification: Subheading 2009.90.40
• Description: Coconut water products

Documentation Requirements for Special Categories

Intended Use Substantiation: For products qualifying based on religious or specific use:

Required Documentation:

• Use Verification: Documentation substantiating intended religious or specified use
• Recordkeeping: Supporting documentation must be kept on file
• Five-Year Retention: Standard customs record retention period applies
• Audit Availability: Documentation must be available for CBP review upon request

Examples of Acceptable Documentation:

• Religious Use: Letters from religious organizations, purchase orders from religious institutions, invoicing indicating religious use
• Business Records: Internal documentation of intended use and distribution channels
• Customer Certifications: Statements from customers regarding intended use where appropriate
• Import History: Consistent pattern of imports for specified purposes

3 · Entry Filing Procedures and Classification Requirements

Claiming exemptions requires proper use of specific Chapter 99 subheadings in entry documentation.

Chapter 99 Subheading Declarations

Two Subheading Options: CBP established two distinct subheadings for declaring exemptions:

Subheading 9903.01.32 - Standard Agricultural Exemptions

• Use: For products classifiable under the 237 exempted HTSUS classifications
• Application: Use when product’s regular HTSUS classification is one of the 237 listed in Annex I
• Declaration Method: Report both regular HTSUS classification and 9903.01.32
• Effect: Declares product exempt from reciprocal tariff assessment

Subheading 9903.02.78 - Special Category Exemptions

• Use: For products described in eleven special categories (new subdivision (iii)(b) to U.S. note 2(v))
• Application: Use for religious use products, acai products, and other specified categories
• Declaration Method: Report both regular HTSUS classification and 9903.02.78
• Effect: Declares product exempt from reciprocal tariff based on use or category

Entry Filing Procedures

Proper Entry Declaration: Importers must follow specific procedures for claiming exemptions:

Multi-Line Entry Approach:

• Primary Classification: Report product under its regular HTSUS classification
• Additional Line: Add Chapter 99 subheading (9903.01.32 or 9903.02.78) as additional line
• Value Declaration: Typically full product value on Chapter 99 line
• System Processing: ACE system recognizes Chapter 99 subheading and applies exemption

Broker Coordination:

• Classification Verification: Work with customs broker to verify product qualifies for exemption
• Subheading Selection: Ensure correct Chapter 99 subheading used (9903.01.32 vs. 9903.02.78)
• Documentation Provision: Provide broker with use documentation for special category products
• Entry Review: Review entry summary before filing to confirm proper exemption claim

Common Filing Errors to Avoid:

• Wrong Subheading: Using 9903.01.32 for special category products requiring 9903.02.78
• Missing Primary Classification: Failing to report regular HTSUS classification
• Insufficient Documentation: Lacking supporting documentation for use-based exemptions
• Improper Value Declaration: Incorrect value reporting on Chapter 99 lines

4 · Entry Correction Procedures and Refund Claims

Importers who entered affected products on or after November 13, 2025, without claiming exemptions should take corrective action to obtain duty refunds.

Identifying Entries Requiring Correction

Entries Subject to Correction: Importers should review entries meeting specific criteria:

Qualifying Entries:

• Entry Date: Entered for consumption or withdrawn from warehouse on or after November 13, 2025, at 12:01 a.m. EST
• Product Coverage: Contains products now identified as exempt from reciprocal tariffs
• Prior Subheadings: Filed with subheadings 9903.01.25, 9903.02.02 through 9903.02.73 (reciprocal tariff assessment subheadings)
• Incorrect Assessment: Reciprocal tariffs assessed when product should have been exempt

Review Process:

• Entry Inventory: Identify all entries filed for November 13, 2025, onward
• Product Analysis: Determine which products qualify for exemptions
• Duty Assessment Review: Verify whether reciprocal tariffs were assessed
• Correction Eligibility: Confirm entries eligible for correction and refund

Correction Timing and Procedures

Three Correction Pathways: Correction method depends on entry status and timing:

Pathway 1: Pre-Deposit Correction (Within 10 Days of Release)

• Timing: For entries filed within last 10 days where estimated duties not yet deposited
• Deadline: Correct within 10 days of cargo release from CBP custody
• Method: File entry correction through ACE or customs broker
• Benefit: Avoids need for refund process; duties never deposited
• Priority: Highest priority to avoid payment of incorrect duties

Pathway 2: Post Summary Correction (Unliquidated Entries)

• Timing: For unliquidated entries where estimated duties already deposited
• Method: File Post Summary Correction (PSC) requesting refund
• Processing: CBP reviews and approves PSC
• Refund Issuance: Refund issued at liquidation upon PSC approval
• Timeline: Refund timing depends on liquidation date

Pathway 3: Protest (Liquidated Entries)

• Timing: For entries already liquidated
• Deadline: File protest within 180 days after liquidation date
• Legal Basis: 19 U.S.C. § 1514 provides protest authority
• Method: Submit formal protest challenging liquidation
• Processing: CBP reviews protest and determines whether to grant refund
• Timeline: Protest processing may take several months

Correction Filing Procedures

Technical Filing Requirements:

For Pre-Deposit Corrections:

• ACE Entry Correction: Use ACE entry correction functionality
• Broker Coordination: Work with customs broker to submit correction
• Classification Update: Add appropriate Chapter 99 subheading (9903.01.32 or 9903.02.78)
• Supporting Documentation: Attach documentation supporting exemption claim if required

For Post Summary Corrections:

• PSC Submission: File PSC through ACE system
• Correction Reason: Clearly state reason: product qualifies for agricultural exemption per November 14, 2025, executive order
• Classification Change: Identify original classification and corrected classification including Chapter 99 subheading
• Refund Calculation: Calculate duty refund amount based on exemption
• Supporting Documentation: Include documentation supporting exemption eligibility

For Protests:

• CBP Form 19: Complete protest form with required information
• Protest Grounds: State grounds: product qualifies for exemption under November 14, 2025, executive order
• Legal Basis: Cite 19 U.S.C. § 1514 and relevant executive order provisions
• Evidence Submission: Submit comprehensive evidence supporting exemption claim
• Refund Request: Clearly state refund amount requested

5 · Industry Impact and Strategic Considerations

The agricultural exemption expansion has significant implications for food importers, agricultural trade, and supply chain costs.

Affected Industry Sectors

Agricultural Import Categories: Various agricultural industry sectors benefit from exemptions:

Fresh Produce Importers:

• Tropical Fruits: Frozen tropical fruit exemptions benefit specialty produce importers
• Specialty Citrus: Certain citrus products qualifying for exemptions
• Cost Impact: Removal of reciprocal tariffs improving import economics
• Seasonal Considerations: Particular benefit during peak import seasons

Processed Food Industry:

• Beverage Manufacturers: Acai and coconut water products exempted
• Juice Processors: Certain citrus juice concentrates exempt
• Ingredient Suppliers: Acai preparations for beverage manufacture exempt
• Cost Reduction: Significant savings on ingredient costs

Religious Food Suppliers:

• Kosher Food Distributors: Etrog and religious use products exempt
• Religious Institution Suppliers: Communion wafers and religious bakers’ wares exempt
• Specialty Markets: Essential oils for religious purposes exempt
• Documentation Requirements: Must maintain use verification documentation

Specialty Food Importers:

• Health Food Sector: Acai products popular in health food market
• Ethnic Foods: Certain tropical fruits and specialty items
• Coconut Products: Coconut water and related products
• Niche Markets: Specialty agricultural items with limited domestic production

Cost Impact Analysis

Duty Savings Calculation: Exemption value depends on applicable reciprocal tariff rates:

Reciprocal Tariff Rates:

• Country-Specific: Rates vary by country of origin
• Typical Ranges: Generally 10-30 percent depending on country
• Examples: China 10%, certain other countries higher rates
• Cumulative Effect: Exemptions apply to reciprocal tariff layer only

Savings Example: For coconut water imported from Thailand (hypothetical 15% reciprocal tariff):

• Import Value: $100,000
• Previous Reciprocal Tariff: $15,000
• Other Duties: MFN duties still apply
• Savings: $15,000 per shipment from reciprocal tariff exemption

Strategic Supply Chain Considerations

Sourcing Optimization: Exemptions affect sourcing and supply chain decisions:

Country Sourcing:

• Reciprocal Tariff Variability: Different countries subject to different reciprocal tariff rates
• Exemption Importance: Exemptions more valuable when sourcing from higher reciprocal tariff countries
• Sourcing Strategy: May justify continued sourcing from preferred suppliers despite reciprocal tariff framework
• Supplier Stability: Enables maintaining established supplier relationships

Product Mix Decisions:

• Exempted Products: May increase imports of exempted agricultural products
• Non-Exempted Alternatives: Consider exempted products versus non-exempted substitutes
• Customer Offerings: Potential to offer exempted products at more competitive prices
• Market Positioning: Competitive advantage from lower duty costs on exempted items

Planning Considerations:

• Regulatory Monitoring: Continue monitoring for potential exemption list changes
• Documentation Systems: Ensure systems capture required documentation for use-based exemptions
• Classification Accuracy: Invest in proper classification to ensure exemption eligibility
• Correction Processes: Implement processes for identifying and correcting entries missing exemptions

6 · Compliance Requirements and Risk Management

Proper compliance with exemption procedures requires attention to classification accuracy, documentation requirements, and recordkeeping obligations.

Classification Compliance

Accurate Classification Imperative: Exemptions require products be “properly classifiable” under exempted HTSUS numbers:

Classification Accuracy:

• Precise Matching: Product characteristics must match HTSUS classification description
• Expert Review: Consider professional classification review for complex products
• Binding Rulings: Option to request CBP binding ruling for classification certainty
• Consistency: Maintain consistent classification across entries

Misclassification Risks:

• Exemption Denial: Incorrect classification resulting in exemption denial
• Duty Assessment: Assessment of reciprocal tariffs on incorrectly classified entries
• Penalties: Potential penalties for negligent or fraudulent misclassification
• Audit Issues: Classification problems identified in CBP audits

Documentation and Recordkeeping

Supporting Documentation Requirements: Particularly critical for use-based exemptions:

Required Documentation:

• Use Verification: For religious use products, documentation substantiating intended use
• Business Records: Commercial documents supporting exemption claims
• Customer Documentation: Evidence regarding end use where applicable
• Import Patterns: Consistent history supporting claimed use

Recordkeeping Obligations:

• Five-Year Retention: All supporting documentation retained for five years
• Organized Filing: Systematic filing enabling efficient retrieval
• Audit Readiness: Documentation readily available for CBP review
• Electronic or Paper: Either format acceptable if legible and accessible

Audit Preparedness

CBP Review Potential: Exemption claims may be subject to CBP verification:

Audit Scenarios:

• Classification Review: CBP verification of proper classification under exempted HTSUS
• Use Verification: For special category products, verification of claimed use
• Documentation Examination: Review of supporting documentation adequacy
• Pattern Analysis: Analysis of import patterns for consistency with claimed exemptions

Audit Preparation:

• Regular Reviews: Periodic internal audits of exemption claims
• Documentation Completeness: Ensuring complete documentation on file
• Classification Verification: Ongoing verification of classification accuracy
• Corrective Actions: Prompt correction of identified errors

7 · Conclusion: Capitalizing on Agricultural Exemptions

Exemption Significance

Substantial Duty Relief: The addition of 237 HTSUS classifications and eleven special categories provides meaningful duty savings for agricultural importers, particularly those sourcing from countries with higher reciprocal tariff rates.

Industry-Specific Benefits: Various agricultural industry sectors realize benefits including fresh produce importers, processed food manufacturers, religious food suppliers, and specialty food distributors.

Implementation Imperatives

For Current Importers: Importers of affected agricultural products should take immediate action:

Priority Actions:

1. Review Annex I: Examine complete list of 237 exempted classifications
2. Identify Qualifying Products: Determine which imported products qualify for exemptions
3. Entry Review: Review entries since November 13, 2025, for potential corrections
4. File Corrections: Submit corrections for entries incorrectly assessed reciprocal tariffs
5. Update Procedures: Modify entry filing procedures to claim exemptions on future entries

For Future Entries: Establish processes ensuring proper exemption claims:

Procedural Requirements:

• Classification Verification: Confirm products properly classifiable under exempted HTSUS
• Subheading Selection: Use correct Chapter 99 subheading (9903.01.32 or 9903.02.78)
• Documentation: Maintain required supporting documentation for use-based exemptions
• Broker Coordination: Work with customs brokers to ensure proper exemption declarations
• Quality Assurance: Implement verification procedures confirming exemption claims

Strategic Positioning

Supply Chain Optimization: Exemptions create opportunities for supply chain optimization:

• Cost Reduction: Significant duty savings improving import economics
• Sourcing Flexibility: Greater flexibility in country sourcing decisions
• Competitive Positioning: Lower costs enabling competitive market positioning
• Customer Value: Potential to pass savings to customers or improve margins

Ongoing Monitoring:

• Regulatory Changes: Monitor for potential future modifications to exemption list
• Compliance Developments: Track CBP guidance on exemption administration
• Classification Updates: Stay current on HTSUS classification changes affecting exemptions
• Industry Intelligence: Engage with trade associations on exemption-related developments

The November 14, 2025, expansion of agricultural product exemptions from reciprocal tariffs provides significant opportunity for duty savings. Success requires understanding exempted classifications, proper entry filing procedures, timely correction of prior entries, and ongoing compliance with classification and documentation requirements. Agricultural importers taking prompt action to capitalize on these exemptions position themselves advantageously in competitive food and agricultural markets.

This analysis reflects CBP guidance issued November 14, 2025, implementing Executive Order provisions expanding agricultural product exemptions from reciprocal tariffs. Exemptions apply to goods entered for consumption or withdrawn from warehouse on or after 12:01 a.m. EST November 13, 2025. The complete list of 237 exempted HTSUS classifications appears in Annex I of the November 14, 2025, Executive Order. Importers should verify specific product classification and exemption eligibility with qualified customs professionals. Products qualifying for exemptions must be declared using Chapter 99 subheading 9903.01.32 or 9903.02.78 as appropriate. Entries filed on or after November 13, 2025, with incorrect reciprocal tariff assessment should be corrected through appropriate procedures to obtain refunds. Information current as of publication date.