On April 30th, U.S. Customs and Border Protection (“Customs”) clarified in its International Emergency Economic Powers Act Frequently Asked Questions that the “in transit” exemption from reciprocal tariffs provided for in the Executive Order for goods in transit as of April 5th or April 9th applies only to ocean vessels. Customs stated the following:

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. As defined in 19 U.S.C. 1401 and 19 CFR 4.0, vessel includes every description of water craft or other contrivance used or capable of being used as a means of transportation on water, but does not include aircraft. 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, often referred to as transloading. (emphasis added).

Entries transported other than by vessel filed using Harmonized Tariff Schedule (“HTS”) 9903.01.28 should be corrected “as soon as possible.” Customs then stated that importers should correct any affected entries “by filing a post summary correction.”

We advise clients to contact the Husch Blackwell International Trade & Supply Chain team for specific questions related to your imports.

The Husch Blackwell Trade team continues to monitor developments and will provide additional updates as they arise.