The Trump administration may refund part of the 25% tariff penalty imposed on India on importing crude oil from Russia. Relief will be available on some selected transactions. Also, due to India-US Interim Trade Framework, the tariff has increased to 18%.
New Delhi. The Donald Trump administration may refund a part of the 25% tariff penalty imposed on India for importing crude oil from Russia. This relief can be available in cases where the shipments have taken place after February 7. This is the same date when President Donald Trump’s executive order came into effect. In this order, instructions were given to remove the additional 25% duty imposed on Indian imports related to oil purchase from Russia. Let us tell you that with this refund, Indian businessmen can get relief of about Rs 40 thousand crores.
In which cases can refund be given?
A person familiar with the matter said the exact amount of any potential refund has not yet been decided. Refunds will be applicable only on select transactions. These would be cases where the tariff order was deposited before its implementation, but the actual import took place after midnight of February 7. This is being considered a transitional arrangement rather than any major policy change.
Still confused about refund process
According to officials, the US intends to allow refunds on duties collected during that period, but the process and timeline are not yet completely clear. Due to this uncertainty, there is concern among Indian exporters.
The decision to remove duty will be implemented from now onwards
Trade experts say that the decision to remove duty will be applicable only from now onwards. That means, only Indian goods reaching America after 12:01 am EST on February 7 will be affected. In some cases, where duty has been collected even after the implementation of the order, importers may be eligible for a refund.
India-US interim trade framework announced
Last Saturday, India and America announced an interim trade framework. Under this, the total tariff on Indian exports to America has reduced to 18%. The purpose of this arrangement is to pave the way for a comprehensive bilateral trade agreement. The interim agreement focuses on cutting tariffs and resolving non-tariff barriers, while a future larger agreement could cover goods, supply chains and digital trade.
Additional 25% tariff on Russian oil abolished
Through a separate executive order, the US abolished the additional 25% tariff imposed on India on the purchase of Russian oil with effect from February 7. However, America has also made it clear that it will keep an eye on whether India resumes direct or indirect import of Russian crude oil or not.
Trump administration’s February 6 executive order
In an order issued on February 6, the Trump administration said that the additional 25% duty previously imposed on Indian goods coming for consumption in the US on or after 12:01 am Eastern Standard Time on February 7, 2026, will not be applicable. If any fees have been charged despite the implementation of this Order, refunds in such cases will be made in accordance with US laws and the procedures of US Customs and Border Protection.