A broad coalition of shipper and logistics industry associations is pressing U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS) for urgent clarification on whether transshipped goods are subject to new tariffs imposed by the Trump administration on April 5.
The concern centers around cargo that departed its country of origin before the April 5 deadline but was later transshipped through another port on its way to the United States. Industry groups are seeking confirmation on whether such goods are exempt from the tariffs introduced under the International Emergency Economic Powers Act (IEEPA).
In a letter dated June 27, 94 organizations—including the National Retail Federation, Retail Industry Leaders Association, National Industrial Transportation League, and the National Customs Brokers and Forwarders Association of America—criticized CBP for providing inconsistent and, at times, contradictory guidance.
Citing long-standing CBP rulings, the groups argue that transshipment or diversion in transit should not affect the duty status of goods. They point to the established “sale for exportation” standard, which bases tariff liability on the original sale and shipment of goods destined for the U.S., regardless of routing.
“Numerous CBP rulings clarify that documentary evidence—such as invoices, purchase orders, and bills of lading—demonstrate the goods were always intended for the U.S. market, with no plan for diversion,” the letter noted. “This supports the view that cargo relayed through other ports should still qualify for the in-transit exemption, based on the initial export country.”
Importers and trade compliance experts say the original April 4 guidance from CBP failed to clearly address the impact of transshipment. A follow-up FAQ published on May 15 attempted to provide clarity but has still left many questions unanswered.
The coalition emphasized that transshipment decisions are often outside the control of importers, and they urged CBP and DHS to establish a single, reliable communication channel to issue future updates.
“With multiple channels of communication, it’s critical that the trade community has access to one consistent and authoritative source for updates on trade policies and enforcement procedures,” the letter stated.
The groups also requested that CBP and DHS maintain adequate staffing and resources to manage the evolving tariff enforcement environment.
Legal challenges to the IEEPA tariffs continue to unfold. In late May, the U.S. Court of International Trade ruled that former President Trump had exceeded his authority in implementing the tariffs. However, the U.S. Court of Appeals for the Federal Circuit issued a temporary stay, keeping the tariffs in place pending a future hearing.
Meanwhile, the U.S. Supreme Court declined to expedite a separate case brought by two toy importers, further extending the legal timeline. Trade lawyers speaking at a recent American Association of Exporters and Importers conference in Washington, D.C., estimated it could take at least six months—or more—before a final resolution is reached.
In the meantime, the Trump administration announced last week that it intends to extend the suspension of reciprocal tariffs for all nations except China, Mexico, and Canada, ahead of the July 9 expiration.
Source: joc.com