What is the Lindsey O. Graham Act? Sanctions and Importer Impact

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, passed on September 18 of that year, compels the President of the United States to impose tariffs on goods from Russia and trade partners who purchase Russian crude oil and natural gas. The act also contains orders for non-tariff trade sanctions such as limiting legal methods of transaction from importers of Russian goods.

Originally named the Sanctioning Russia Act of 2025, the act was renamed to acknowledge sanctions against Iran and honor the late South Carolina Senator Lindsey Graham. 

When Did the Sanctioning Russia and Iran Act Take Effect?

The Sanctioning Russia and Iran Act was passed on 9/18/26. The tariff-related language in the act compels the President to, 30 days after the act's passage, enact tariffs of up to 500% on goods imported from the Russian Federation, and tariffs of up to 100% on goods from countries who purchase specific energy products from Russia.

In addition to the aforementioned tariffs, the act imposes further sanctions and importer-facing concerns, such as:

• Tariff stacking with HTS duties, sectoral tariffs, and anti-dumping/countervailing duties (AD/CVDs)
• Rejected or blocked transactions from sanctioned financial institutions, insurers, and commodity suppliers
• Cargo delayed at customs clearance due to incomplete documentation with regard to country of origin, vessel registration, payment method, or business ownership
• Penalties for transactions that are prohibited by sanctions provisions in the act

Penalties assessed against importers found in violation of subsections 102-111 of the act will be assessed along guidelines established in the International Emergency Economic Powers Act (IEEPA).

Who is Impacted by the Lindsey Graham Act?

In terms of international trade, U.S. importers who source goods from either the Russian Federation or that country’s trade partners in the energy sector are significantly impacted by the act. 

Two sections of the act are of specific interest to those importers:

• Section 112: Establishes rules for additional tariffs on Russia and products therefrom.
• Section 113: Establishes those rules for countries that import significant amounts of Russian crude oil or natural gas (LNG), or facilitates evasion of sanctions on Russian oil.

Each of these sections have a direct impact on the total landed cost of affected goods.

What Does the Act Change for Iran?

The act extends the sunset period for the Iran Sanctions Act of 1996 from 2026 to 2031. For most commercial importers in the U.S., the critical element of this act is sanctions against covered persons that can indirectly cause payment and/or transaction refusals for importers who attempt to transact with such persons, whether knowingly or unknowingly.

How Does the Sanctioning Russia Act Affect Imported Goods?

The biggest impact on imported goods that fall under classifications specified in the act is an ad valorem tariff of up to 500% depending on the country of origin and the amount of additional duties deemed appropriate by the President.

Sections 112 and 113 explain how those tariffs and sanctions are applied to Russia and its trade partners, respectively.

Section 112 Tariffs on Goods From Russia

Section 112 of the Lindsey O. Graham Russian Sanctions Act calls for the President to take the following actions:

• Establish a new tariff on Russian imports of no more than 500%
  • The act names petroleum, petrochemicals, and coal products specifically, but this applies to all non-exempt goods

• Ensure the tariff imposed is cumulative with additional duties and charges levied under Section 301, Section 232, AD/CVD orders, and other mandated tariffs
• 500% statutory ceiling
• Applies to any Russian-origin good, not just petroleum and derivatives
• IDs energy imports

The next section of the act addresses actions to be taken on trade partners who purchase certain energy products from the Russian Federation.

Section 113 Tariffs on Goods From Russia’s Petroleum Trade Partners

Countries who satisfy criteria established in §113(c) of the act are also subject to additional tariffs of up to 100% ad valorem following a 10-day congressional notice from the President. 

Section 113 countries are identified as follows:

• Made new purchases of crude oil or natural gas from the Russian Federation on or after 30 days of enactment
• Ranked among the top 5 largest importers by volume of Russian crude oil or natural gas over the 12-month period preceding 9/18/26
• Was among the top 5 countries facilitating Russian oil sanctions evasion during the same period of time

The act includes an exception for countries who would otherwise fit the criteria for natural gas imports if those imports were under 15% of the Russian Federation's total exports of natural gas during that time period. Due to the specification of top 5 importers, the countries that fall under Section 113 tariffs can change during review processes that take place every 180 days.

Other departments and agencies involved in enforcement actions and consultations regarding these sections of the act include U.S. Customs and Border Protection (CBP), the Secretary of State, and the Secretary of the Treasury.

Do Sanctioning Russia Act Tariffs Stack With Other Import Duties?

Yes, tariffs assessed under the Sanctioning Russia Act stack with additional duties, including but not limited to:

• Column duties found in the HTS
• Commodity-level sectoral tariffs enacted under Section 232
• Country-specific tariffs enacted under Section 301
• AD/CVD orders

Assume a U.S. business wants to import 1,000 widgets of Russian widgets valued at $100 a piece for a customs value of $100,000. The imported goods are potentially subject to the following cumulative duties:

This puts the importer at an obvious disadvantage compared to purchasing goods from a country other than Russia. 

For countries that fall under Section 113(c), the same transaction with an initial $100,000 customs value would be subject to a lower potential sanctioning duty, but have equal exposure to stacking from other applicable tariffs.

The act means customers will need to double check country of origin requirements from time to time since countries impacted by Section 113 can change during scheduled review periods.

Does the Act Change Country of Origin Requirements?

The Sanctioning Russia Act does not establish a separate country-of-origin penalty for evading Section 112 or Section 113 duties. Rather, false or misleading origin claims used to avoid these tariffs threaten to expose importers to penalties under existing federal laws governing false statements, duty evasion, and customs fraud. 

How Do Sanctions Affect Imports That Are Otherwise Admissible?

The sanctioning provisions of the act can create a scenario in which an imported good, while permissible for importation according to any relevant U.S. customs law, cannot be transacted legally even if the importer is willing to pay duties assessed via the act. 

For instance, a business wants to import heavy machinery from Germany. The machinery contains no Russian-origin materials, and it is not subject to sections 112 or 113, nor is the commodity itself restricted. However, the supplier has the importer submit payment to an account from a Russian financial institution identified by the act.

Per § 103 of the act, this transaction cannot be completed even if the goods are permissible because the legality of the transaction itself is what’s at question. 

Statutory Exceptions To the Sanctioning Russia Act

The act names agricultural commodities, medical devices, and medicines, as well as transactions necessary for and related to the same, as exceptions to otherwise applicable sanctions when used for humanitarian aid in Section 114. 

Can Sanctioning Russia Act Tariffs Be Waived or Negated?

The President is given discretionary authority to modify or terminate sanctions and tariffs on non-Russian countries and other entities if by submitting a report to congress attesting that:

• The foreign entity is not engaged in activities that was the basis for the sanctions AND
• Has assurance from the foreign country/business/individual that they will not knowingly engage in sanctionable behavior

As for terminating sanctions on Russia itself, the act sets two important conditions:

• Russia must sign a peace agreement accepted by the Ukrainian government
• Russia must cease all military hostilities attempting to overthrow the free and independent Ukrainian government

The shifting nature of countries defined in Section 113 of this act makes it particularly difficult for importers to correctly calculate duties owed on goods sourced from affected countries. Licensed Customs Brokers, on the other hand, have the expertise and tools necessary to ensure accurate duty calculations and fulfill specific documentation requirements when customs regulations are at their most complex.

If you’re an importer looking for assistance with customs brokerage, (855) 912-0406 or fill out a contact form online today to find out how USA Customs Clearance can help you avoid delays, fines, and freight seizures.

H.R. 5334 - Lindsey O. Graham Sanctioning Russia and Iran Act of 2026

Iran Sanctions Act of 1996