CBP Updates FAQs, Says Ocean Vessels Only for Reciprocal In-Transit Exemption
Exemptions from reciprocal tariffs for goods that were in transit on April 5 or 9 only apply to ocean vessels, CBP said in an April 30 update to its FAQ on the tariffs.
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“The in-transit provisions for reciprocal tariffs only apply to the vessel mode of transportation; they do not apply to other modes of transportation such as air, rail, truck, etc.,” CBP said, citing 19 U.S.C. 1401, which defines a “vessel” as a water craft.
The in-transit exemption also doesn’t apply to goods that initially began by vessel but arrived on a different mode of transportation, “often referred to as transloading,” CBP said.
“For entries transported other than by vessel that were filed using HTS 9903.01.28, filers should take immediate action to correct such entries, as necessary, as soon as possible. For those entries that have been filed with CBP erroneously using HTS 9903.01.28, importers should correct the entry summary by filing a post summary correction."
The update was one of a few made to the FAQ, which covers all International Emergency Economic Powers Act tariffs.
CBP also clarified that goods that qualify for USMCA, but that are products of China, are still covered by the reciprocal tariffs. “A product that is country of origin China, regardless of whether it qualifies for USMCA, is subject to the reciprocal tariff, and must report 9903.01.63/+125%.”
The updates follow another set of changes CBP made to its FAQ on Section 232 tariffs at the end of last week clarifying that reciprocal tariffs don’t apply to derivatives with only some steel or aluminum content.
Responding to the question of whether importers are “expected to pay the reciprocal tariff on the value not declared as the steel content” of a derivative outside of Chapter 73 (and only subject to Section 232 tariffs on the steel content itself), CBP said, “No, articles and derivatives of steel and aluminum subject to Section 232 duties are excluded from the reciprocal tariffs.”
“The entire value is exempt from the reciprocal tariffs,” the agency said.