The U.S. Department of Agriculture (USDA), through the Agricultural Marketing Service (AMS), has withdrawn the direct final rule titled Cotton Board Rules and Regulations: Adjusting Supplemental Assessment on Imports (2025 Amendments) following receipt of a significant adverse public comment.
The withdrawal is effective February 26, 2026, and confirms that the decreased cotton import assessment rate originally scheduled to take effect March 1, 2026, will not be implemented. Instead, import assessments will revert to the previously established rates.
U.S. Customs and Border Protection (CBP) has implemented the change through Harmonized System Update (HSU) 2606, which removes the pending rate adjustments and restores prior cotton assessment values within the tariff schedule.
What Changed
U.S. Customs and Border Protection implemented the update through CSMS #67893165 — Harmonized System Update (HSU) 2606, which removes the pending March 1, 2026 cotton assessment rates and restores the previously established values.
- The proposed reduction in cotton supplemental assessments will not take effect.
- Importers must continue using the previous assessment rates.
- CBP updated tariff data via HSU 2606, created February 27, 2026.
The update includes:
- 5,122 Harmonized Tariff records
- 24,062 ABI records
Why the Rule Was Withdrawn
AMS received a significant adverse comment during the rulemaking process, which triggered withdrawal under federal direct final rule procedures. When this occurs, agencies typically reassess the proposal before issuing any future action.
At this time, there is no revised effective date for a new assessment rate.
What Importers Should Do
Importers of cotton and cotton-containing products should:
- Confirm brokers are using current (pre-March 2026) assessment rates
- Review entry filings submitted near the anticipated implementation date
- Monitor future AMS rulemaking for potential revised proposals
- Ensure internal compliance teams are aware that no rate reduction occurred
Why This Matters
Cotton assessments are often embedded within broader landed cost calculations. A planned rate reduction that does not materialize can create:
- Cost forecasting discrepancies
- Entry filing errors
- Reconciliation exposure if incorrect rates were assumed
Accurate tariff data alignment is critical to avoiding post-entry corrections.
Key Contacts
Questions regarding cotton assessments:
CottonRP@usda.gov
Questions regarding Harmonized System Update implementation:
HTSAdmin@cbp.dhs.gov
How Alba Can Help
Alba’s customs and trade compliance teams can assist with:
- Tariff classification validation
- Entry review and correction support
- Duty and fee impact analysis
- Ongoing regulatory monitoring
If you have questions about how this change affects your imports, contact us.
Source
Federal Register Notice: Withdrawal of Direct Final Rule — Cotton Board Rules and Regulations: Adjusting Supplemental Assessment on Imports (2025 Amendments)
