Article By: Brian Walczyk, Compliance Manager, TradeInsights, LCB, CCS

US CBP clarified the transit exemption for reciprocal tariffs on April 30^th in an update to their FAQ on the subject, found here.

In the CBP FAQ it is stated, “The in-transit provisions do not apply when the shipment begins by vessel and then arrives in the United States using a different final mode of transportation.”  Other modes are cited in the same FAQ as, “other modes of transportation such as air, rail, truck, etc.”

For cargo that discharges at a U.S. port the exemption is valid, if claimed correctly.  For cargo having discharged in Canada or Mexico, which may have transited by rail or truck across the U.S. border, the exemption is not applicable.  Nor is the exemption applicable for air shipments arriving at any port of import or port of entry in the U.S.

US CBP has directed filers to immediately begin correcting entries where the 9903.01.28 exemption was used erroneously, and advised importers to correct their entry summary by filing a post summary correction (PSC).

We will continue to monitor and provide updates as they become available.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions.