17.10.2026 Regulation #USA #Russia #Import #Duties #Sanctions

US sets 500% duty on Russian goods but waives it in the same order

On October 16, the US President signed an executive order that formally raises duties on goods from Russia by 500% ad valorem (the order's wording; the Act speaks of a rate "up to 500 percent") and on two groups of third countries by 100%. Section 4 of the same document, however, waives the application of all those duties. According to RFE/RL, the package was due to take effect on October 18.

How the Graham Act's tariff provisions work

Public Law 119-111 was signed on September 18, 2026. Section 112 directs the President, within 30 days, to raise the duty on all goods from Russia, including oil, gas, LNG, petroleum products and coal, to up to 500% ad valorem on top of any other duties, including AD/CVD and measures under sections 122, 201, 301 and 232.

Section 113 provides for up to 100% on all goods from a country that either:

Crude oil is defined by HS code 2709 and natural gas by 2711. The US Trade Representative (USTR) may adjust the rate between zero and 100% upon a written determination to congressional committees that a country has increased or reduced its purchases. 180 days after duties are first imposed, and every 180 days thereafter, USTR redetermines the five largest importers of Russian crude and the five largest importers of Russian gas. A gas carve-out applies if a country's imports of Russian gas were below 15% of total Russian gas exports over 12 months and it has taken significant steps to reduce them (both conditions together). Section 114 exempts, among other things, food, medicine and medical devices, low-enriched uranium imported under existing waivers, and non-Russian oil transiting Russian territory.

What is suspended and what remains in force

Section 2 of the order sets the rates: 500% on goods from Russia, 100% on goods from the five largest buyers of Russian oil and gas that make new purchases on or after October 18, 2026, and 100% for the top five facilitators of sanctions evasion. USTR monitors purchases and reports to the President on which countries fall into those groups.

Section 4 uses section 115 of the Act to waive:

Sanctions under executive orders issued under the national emergency with respect to harmful foreign activities of the Russian government (continued on March 24, 2026, 91 Fed. Reg. 15515) remain in place and are not affected. A certification of national interest and a report have been sent to Congress. The waiver stays in effect until the President, or the Secretary of State in consultation with Treasury and USTR, decides further action is appropriate; it has no end date. According to RFE/RL, the order followed a decision to permit Russian diesel sales; Razom for Ukraine's Mykola Murskyj pointed to the lack of an expiry date, and lawmakers from both parties also criticised the decision.

What this means for traders

Current conditions for importing Russian goods into the US do not change: the 500% rate, stacked on other duties, is written into the order for the event the waiver is lifted, but it is not applied. For countries buying Russian energy, October 18 matters because the order treats purchases of oil and gas from that date as "new". The order does not provide for publication of USTR's reports. For section 113 duties the Act requires a written justification to congressional committees at least 10 days before they are imposed; RFE/RL's sources say the administration missed an October 8 deadline linked to that requirement.

Primary sources

Mentioned codes

2711

This material is for information only and does not constitute legal advice or customs consulting. Verify changes against the primary sources before acting.