US trade bodies seek clarity on in-transit reciprocal tariff exclusion

“While we appreciate the guidance provided by US Customs and Border Protection (CBP) thus far, we believe that there are outstanding questions regarding how relay vessels are addressed which continue to create confusion and disruption to supply chains,” they said in a letter to CBP commissioner Rodney Scott and Kristi Noem, secretary in the department of homeland security (DHS).

“We have witnessed differing and sometimes contradictory responses to trade questions and engagement, as well as lack of clarity during the initial rollout, and this has created confusion and harm to US companies,” the letter noted.

The US trade community needs clarification regarding loading and lading of cargo at foreign ports to avoid increased costs and administrative burdens for both the trade community and CBP, along with avoiding supply chain disruptions, it said.

“We urge the Administration to conform to trade norms that loading is loading on any vessel for the purpose of duty assessment. The transference of cargo from a relay vessel to a larger ocean-faring vessel has neither historically been nor should it currently be a dutiable event,” the letter observed.

The associations requested to receive consistent notices through traditional channels of communication as soon as new information is posted regarding FAQs related to the International Emergency Economic Powers Act (IEEPA) to ensure maximum compliance and support CBP enforcement efforts.

Enacted in 1977, IEEPA is a US law that grants the president broad authority to regulate international commerce in response to national emergencies that threaten the country.

They also requested the administration to remove non-uniformed CBP and DHS personnel from the department of government efficiency’s (DOGE) government reduction plan as these personnel are critical for the successful planning and execution of ongoing tariff changes and enforcement.

The other signatory trade associations are the Accessories Council, the Air-Conditioning, Heating and Refrigeration Institute, the Airforwarders Association, the Alliance for Chemical Distribution (ACD) and AmericanHort.

Fibre2Fashion News Desk (DS)