Notice2025-23892
Notice of Implementation of Action: Nicaragua's Acts, Policies, and Practices Related to Labor Rights, Human Rights and Fundamental Freedoms, and the Rule of Law
Primary source
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Published
December 29, 2025
Issuing agencies
Trade Representative, Office of United States
Abstract
Pursuant to Section 305(a) of the Trade Act (19 U.S.C. 2415(a)(1)), this notice implements action determined by the United States Trade Representative (U.S. Trade Representative) in this investigation and announced on December 10, 2025.
Full Text
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<title>Federal Register, Volume 90 Issue 245 (Monday, December 29, 2025)</title>
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[Federal Register Volume 90, Number 245 (Monday, December 29, 2025)]
[Notices]
[Pages 60850-60851]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23892]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Notice of Implementation of Action: Nicaragua's Acts, Policies,
and Practices Related to Labor Rights, Human Rights and Fundamental
Freedoms, and the Rule of Law
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of implementation of action.
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SUMMARY: Pursuant to Section 305(a) of the Trade Act (19 U.S.C.
2415(a)(1)), this notice implements action determined by the United
States Trade Representative (U.S. Trade Representative) in this
investigation and announced on December 10, 2025.
DATES: As set out in the Annex to this notice, tariff increases in
2026, 2027, and 2028 are applicable with respect to products that are
entered for consumption, or withdrawn from warehouse for consumption,
on or after January 1 of the corresponding year.
FOR FURTHER INFORMATION CONTACT: Philip Butler, Chair of the Section
301 Committee, Leigh Bacon, Chief Counsel for Negotiations,
Legislation, and Administrative Law, or Nathaniel Halvorson, Deputy
Assistant U.S. Trade Representative for Monitoring & Enforcement, at
(202) 395-5725.
SUPPLEMENTARY INFORMATION:
I. Proceedings in the Investigation
On December 10, 2024, the U.S. Trade Representative initiated an
investigation regarding Nicaragua's acts, policies, and practices
related to labor rights, human rights, and the rule of law pursuant to
302(b)(1) of the Trade Act of 1974, as amended (Trade Act) (19 U.S.C.
2412(b)(1)). See 89 FR 101088 (December 13, 2024).
On October 20, 2025, USTR announced the U.S. Trade Representative's
determination that Nicaragua's acts, policies, and practices under
investigation are unreasonable and burden or restrict U.S. commerce,
and are thus actionable under sections 301(b) and 304(a) of the Trade
Act (19 U.S.C. 2411(b) and 2414(a)). See 90 FR 48511 (October 23, 2025)
(October 23 notice).
In the October 23 notice, the U.S. Trade Representative proposed a
range of actions including the suspension, withdrawal, or prevention of
application of benefits of the Dominican Republic-Central America-
United States Free Trade Agreement (CAFTA-DR) benefits to Nicaragua,
and additional duties of up to 100 percent on some or all products of
Nicaragua. See 90 FR 48511. USTR requested public comments regarding
the proposed actions and in response received 2,006 written comments.
Commenters included representatives from numerous manufacturing and
agricultural sectors as well as a submission from the Nicaraguan
government.
[[Page 60851]]
On December 10, 2025, USTR announced the U.S. Trade
Representative's determination that action is appropriate, and that
appropriate and feasible action in this investigation includes the
imposition of a tariff that is phased-in over two years on all imported
Nicaraguan goods that are not originating under CAFTA-DR. See 90 FR
57807 (December 12, 2025) (the December 12 notice). Specifically, all
imported Nicaraguan goods that are not originating under CAFTA-DR will
be subject to a 15 percent tariff that is phased-in, with the tariff
set at zero percent on January 1, 2026, 10 percent on January 1, 2027,
and 15 percent on January 1, 2028. Pursuant to Section 305(a) of the
Trade Act (19 U.S.C. 2415(a)(1)), USTR announced that it would issue a
subsequent notice to implement this action.
II. Implementation of Action
In order to implement the U.S. Trade Representative's
determination, subchapter III of chapter 99 of the Harmonized Tariff
Schedule of the United States (HTSUS) is modified by the Annex of this
notice, effective January 1, 2026.
Products of Nicaragua that are provided for in the new HTSUS
heading 9903.89.01, as established by the Annex of this notice, shall
continue to be subject to antidumping, countervailing, or other duties,
fees, exactions and charges that apply to such products. Any product
covered by the Annex to this notice, except any product that is
eligible for admission under `domestic status,' as defined in 19 CFR
146.43, which is subject to the additional duty imposed by this
determination, and is admitted into a U.S. foreign trade zone on or
after the effective date of the additional duties, only may be admitted
as `privileged foreign status,' as defined in 19 CFR 146.41. Such
products will be subject upon entry for consumption to any ad valorem
rates of duty or quantitative limitations related to the classification
under the applicable HTSUS subheading.
As provided in the December 12 notice, the U.S. Trade
Representative will continue to monitor the effects of the trade action
and the progress made toward resolution of this matter. Additionally,
the U.S. Trade Representative will continue to examine the efficacy of
these actions. If it is determined that additional leverage is needed
to encourage Nicaragua to eliminate the investigated acts, policies,
and practices, the U.S. Trade Representative will consider taking
additional action.
Annex
A. Effective with respect to articles of Nicaragua entered for
consumption, or withdrawn from warehouse for consumption, on or after
12:01 a.m. eastern time on January 1, 2026, subchapter III of chapter
99 of the Harmonized Tariff Schedule of the United States (HTSUS) is
modified:
1. by inserting new heading 9903.89.01 in numerical sequence, with
the material in the new heading inserted in the columns of the HTSUS
labeled ``Heading/Subheading'', ``Article Description'', ``Rates of
Duty 1-General'', ``Rates of Duty 1-Special'' and ``Rates of Duty 2'',
respectively:
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Rates of duty
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Heading/ subheading Article description 1
------------------------------------- 2
General Special
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``9903.89.01.................. Articles the product The duty provided No change''.....
of Nicaragua, as in the
provided for in U.S. applicable
note 29 to this subheading + 0%.
subchapter.
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2. by inserting new additional U.S. note 29 in numerical sequence:
``29. (a) Heading 9903.89.01 imposes additional duties on imports
of articles the product of Nicaragua, as provided in this note. The
additional duties apply to products of Nicaragua that are subject to
the rates of duty provided for in column 1-general. The additional
duties do not apply to originating goods of Nicaragua under the
Dominican Republic-Central America-United States Free Trade Agreement
(CAFTA-DR), as defined in general note 29 to the HTSUS. Notwithstanding
U.S. note 1 to subchapter III of chapter 99 of the HTSUS, the articles
of Nicaragua that are subject to the additional duties imposed by
heading 9903.89.01 shall also be subject to the additional duties
imposed on articles the product of Nicaragua by heading 9903.02.47.
The additional duties imposed by heading 9903.89.01 do not apply to
goods for which entry is properly claimed under a provision of chapter
98 of the HTSUS, except for goods entered under subheadings 9802.00.40,
9802.00.50, and 9802.00.60, and heading 9802.00.80. For subheadings
9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to
the value of repairs, alterations, or processing performed abroad, as
described in the applicable subheading. For heading 9802.00.80, the
additional duties apply to the value of the article less the cost or
value of such products of the United States, as described in heading
9802.00.80.
Products of Nicaragua that are provided for in heading 9903.89.01
shall continue to be subject to antidumping, countervailing, or other
duties, fees, exactions and charges that apply to such products.
(b) The additional rates of duty that apply to articles the product
of Nicaragua under column 1-general of heading 9903.89.01 shall be
phased-in as follows:
If entered during the period from January 1, 2026, though December
31, 2026, . . . 0%
If entered during the period from January 1, 2027, though December
31, 2027, . . . 10%
If entered on or after January 1, 2028, . . . 15%''.
B. Effective with respect to articles of Nicaragua entered for
consumption, or withdrawn from warehouse for consumption, on or after
12:01 a.m. eastern time on January 1, 2027, the rate of duty 1-general
column of heading 9903.89.01 is modified by deleting ``0%'' and by
inserting ``10%'' in lieu thereof.
C. Effective with respect to articles of Nicaragua entered for
consumption, or withdrawn from warehouse for consumption, on or after
12:01 a.m. eastern time on January 1, 2028, the rate of duty 1-general
column of heading 9903.89.01 is modified by deleting ``10%'' and by
inserting ``15%'' in lieu thereof.
Jennifer Thornton,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2025-23892 Filed 12-23-25; 8:45 am]
BILLING CODE 3390-F4-P
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</html>Indexed from Federal Register on December 29, 2025.
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