This measure allows qualifying shipments to avoid additional IEEPA-based tariffs—either through full exemption or a reduced 10% rate—if they were already en route to the U.S. before the tariffs took effect.
U.S. Customs and Border Protection (CBP) has released updated guidance to announce a short-term extension to the entry window for shipments eligible under the in-transit tariff exemption.
According to this update, importers with shipments affected by the reciprocal tariff actions, which were introduced in early April 2025, now have until June 16, 2025, to enter qualifying goods and avoid additional duties.
The in-transit entry period was previously set to expire on May 28, 2025.
However, following a decision by the U.S. Court of International Trade (CIT), which paused enforcement of certain tariff measures, CBP extended the deadline to allow more time for legitimate claims.
The CIT’s ruling has since been quickly halted by the Court of Appeals for the Federal Circuit (CAFC).
This guidance is temporary while the stay of the CIT ruling is in effect.
This tariff exemption is designed to protect importers from sudden duty increases on goods that were shipped before tariff changes were announced.
It covers goods impacted by the reciprocal tariffs that were introduced under the International Emergency Economic Powers Act (IEEPA), and announced through Executive Order 14257.
Specifically, the CBP’s in-transit tariff exemption applies to shipments impacted by actions that took effect on April 5, April 9, and April 10, 2025.
It temporarily extends the entry window for eligible in-transit goods, allowing them to be entered either duty-free or at a reduced 10% tariff while the stay of the CIT judgment remains in effect.
According to CBP, the exemption applies exclusively to ocean vessel shipments. Goods transported by air, rail, or truck are excluded, even if they were part of a multimodal route that included sea transport.
In the case of feeder vessels, eligibility is determined based on the date the goods were transferred to the vessel bound for the U.S.
Qualifying shipments may benefit from either a full exemption from additional tariffs or a reduced 10% rate, depending on the product’s origin and the applicable tariff subheading.
Below are the specific eligibility criteria for each category.
To qualify for the exemption under 9903.01.28, goods must meet both of the following conditions:
Please note that CBP will permit heading 9903.01.28 to be declared only for goods that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on April 5, 2025, and before 12:01 a.m. EDT on June 16, 2025.
There are two different scenarios under this exemption:
For goods from countries subject to additional country-specific tariffs (listed under headings 9903.01.43 to 9903.01.76), a reduced 10% tariff applies, only under the following conditions:
Articles that fall under this in-transit scenario must be declared using 9903.01.25.
Goods imported from China and classified under heading 9903.01.63 also qualify for the 10% rate if:
These goods must also be declared under 9903.01.25.
If you have in-transit shipments that may qualify under this tariff exemption, we recommend that you:
At Cole International, we constantly monitor changing trade regulations and offer customs and compliance consulting services to help businesses navigate these changes.
Additionally, we provide timely and efficient customs brokerage services to help U.S. importers streamline their customs clearance and other import processes.
If your goods are currently in-transit, please reach out to one of our trade professionals to learn more about this tariff relief and whether your shipment qualifies.