CBP Extends In-Transit Tariff Exemption to June 16 Following Trade Court Ruling
Trade Update • May 30, 2025
U.S. Customs and Border Protection extends IEEPA Reciprocal In-Transit Tariff Exemption.
ustoms and Border Protection (CBP) has extended the end date for in-transit tariff exemptions to June 16, 2025, in response to the May 28 judgment by the U.S. Court of International Trade (CIT) that vacated tariffs imposed under former President Donald Trump’s executive orders based on the International Emergency Economic Powers Act (IEEPA). CBP’s revised guidance, issued May 30, supersedes its previous cutoff date of May 28.
This guidance applies to the reciprocal tariffs implemented via Executive Order 14257 and its amendments, which took effect on April 5, April 9, and April 10, 2025. While the Federal Circuit has since issued a temporary stay of the CIT’s judgment, CBP has clarified that the updated in-transit timeline will apply while the stay remains in effect.
Key Provisions of the Updated Guidance
U.S. Customs and Border Protection (CBP) has provided the following guidance regarding the eligibility of in-transit goods for tariff exceptions under specific subheadings of the Harmonized Tariff Schedule:
1. General In-Transit Exception (Heading 9903.01.28)
Goods from any country may qualify for the in-transit exception under HTSUS heading 9903.01.28 if they meet both of the following conditions:
Condition 1: The goods were loaded onto a vessel at the port of loading and in-transit on the final mode of transport before 12:01 a.m. ET on April 5, 2025.
Condition 2: The goods are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on April 5, 2025.
To ensure this exception is not misused over time, CBP will allow the use of heading 9903.01.28 only for goods entered or withdrawn:
On or after April 5, 2025, and
Before June 16, 2025, at 12:01 a.m. ET.
2. Country-Specific Rate Replacement Exception (Heading 9903.01.25)
a) For Goods from Countries with Additional Country-Specific Tariffs (HTSUS 9903.01.43 – 9903.01.76)
Goods are eligible for the 10% additional duty in lieu of the higher country-specific duty under heading 9903.01.25 if they meet both of the following:
Loaded and in-transit between April 5, 2025 at 12:01 a.m. ET and April 9, 2025 at 12:01 a.m. ET, and
Entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. ET on June 16, 2025.
These articles must be reported under HTSUS 9903.01.25.
b) For Goods from China (HTSUS 9903.01.63)
Chinese-origin goods qualify for the same 10% rate substitution under heading 9903.01.25 if they:
Were loaded and in-transit between April 9, 2025 at 12:01 a.m. ET and April 10, 2025 at 12:01 a.m. ET, and
Are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. ET on June 16, 2025.
These articles must also be reported under HTSUS 9903.01.25.
How GHY Can Help?
GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.
By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.
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