According to an official communication issued to members by the Gem & Jewellery Export Promotion Council (GJEPC), the United States has terminated the additional ad valorem duties imposed under IEEPA, including the reciprocal tariff framework that had affected Indian exports in the gem and jewellery sector.
The communication, signed by Executive Director Sabyasachi Ray, refers to the Executive Order dated February 20, 2026 titled “Ending Certain Tariff Actions,” which states that the earlier IEEPA-based reciprocal tariffs “shall no longer be in effect” and are to be terminated as soon as practicable. Accordingly, entries made on or after February 20, 2026 should not attract the previously applicable reciprocal tariffs.
Interim Window Before Section 122 Surcharge
GJEPC has further informed members that a 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.
This creates an interim window between February 20, 2026 and before 12:01 a.m. EST on February 24, 2026, during which imports into the United States are expected to 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, which ordinarily attract a 0% MFN rate, this period may represent a limited operational opportunity.
Refund Position in Case of Implementation Lag
In cases where reciprocal IEEPA duties are collected due to implementation lag, the communication notes that such duties may be subject to refund through the standard U.S. Customs and Border Protection protest mechanism under 19 U.S.C. §1514 or via post-summary correction procedures, as applicable. However, the process may be time consuming.
Advisory to Members
GJEPC has stated that it is actively engaging with U.S. customs authorities and keeping stakeholders 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 or importer regarding entry treatment
- Confirm that U.S. Customs and Border Protection has ceased collection of the reciprocal tariff at the relevant port of entry
Given the evolving implementation environment, exporters are encouraged to carefully assess shipment timing, entry dates, and applicable HTS classification before dispatching consignments.
The above update is based on an official communication issued by GJEPC to its members. Exporters are advised to seek independent confirmation from their U.S. customs brokers and trade advisors.
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