05/16/2025
CBP Guidance: Feeder Vessels & In-Transit Tariff Dates
Check out this week's Customs Corner to read about the CBP Guidance on feeder vessels, whether AGOA and Haiti HOPE are subject to reciprocal tariffs, and more.
Trade and Customs Updates
1) CBP Provides Guidance on How Feeder Vessels are Impacted by the In-Transit Date for Reciprocal Tariffs
CBP has provided guidance on the long-awaited confirmation as to whether the “loaded onto a vessel at the Port of Loading and in Transit on the Final Mode of Transport” date is based on the mother vessel or feeder vessel.
On May 15, 2025, CBP updated the IEEPA FAQs page to include an answer to questions surrounding whether the in-transit date would be the date the goods are loaded on the mother vessel or the feeder vessel.
In the first scenario the goods are loaded onto a vessel and never transfer to another vessel.
ANSWER – SCENARIO A: Prior to the cutoff date for the reciprocal tariff in-transit provision, U.S. bound cargo is loaded onto a vessel destined for the U.S. En route to the U.S., this vessel stops at foreign ports to load/offload other cargo, or refuel, but the U.S. bound cargo remains onboard. This vessel arrives at a U.S. port of entry to unload the U.S. bound cargo and make entry.
The cargo in this scenario does qualify for the exception from reciprocal tariffs pursuant to the in-transit provision because prior to the cutoff date, the U.S. bound cargo was laden onto a vessel destined for the U.S. upon departure from the original port of loading and was never unladen or transferred onto another vessel.
Consequently, this vessel constitutes the “final mode of transit” for the laden goods.
In the second scenario the goods are loaded onto a feeder vessel and then transferred to a mother vessel before arrival into the U.S. In this scenario CBP confirms it is the date that the goods are loaded on the mother vessel that should be used for the in-transit date.
ANSWER – SCENARIO B: Prior to the cutoff date for the reciprocal tariff in-transit provision, U.S. bound cargo is loaded onto a vessel destined for a foreign port prior to shipment to the U.S. At this foreign port, after the cutoff date, the U.S. bound cargo is transferred onto a different vessel that is destined for the U.S. This new vessel then arrives at a U.S. port of entry to unload the U.S. bound cargo and make entry.
The cargo in this scenario does not qualify for the in-transit exception for reciprocal tariffs because the U.S. bound cargo was laden onto a vessel destined for the U.S. after the cutoff date irrespective of when it departed from the original port of lading; it was thus not loaded onto a vessel that was the final mode of transit prior to the cutoff date for the reciprocal tariff in-transit exception.
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2) CBP Provides Guidance on Whether AGOA and Haiti Hope Are Subject to Reciprocal Tariffs
The IEEPA FAQs Page has been updated to provide guidance on whether goods that qualify under AGOA and Haiti HOPE are exempt from reciprocal tariffs.
The IEEPA FAQs, in response to the question regarding the Haiti HOPE program, state the following:
Question: Do reciprocal tariffs apply to goods under the Haiti HOPE program?
Answer: “Yes, reciprocal tariffs apply to goods eligible under any preferential trade program listed in General Note 3(c)(i), regardless of whether a claim is made under a specific Special Program Indicator (SPI) or Chapter 98 or 99 provision. Since the Haiti HOPE program is an amendment to Caribbean Basin Economic Recovery Act (CBERA)/Caribbean Basin Trade Partnership Act (CBTPA) – which is listed in GN 3(c)(i) – such goods are subject to the reciprocal tariff, including the 10% duty.”
Given that the African Growth and Opportunity Act (AGOA) is included in General Note 3(c)(i), it should be noted that goods eligible under AGOA, including those classified under Chapter 98 of the Harmonized Tariff Schedule (HTS), are also subject to reciprocal tariffs.
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3) CBP Provides Guidance on How U.S. Content Is Defined and Determined under Reciprocal Exemption 9903.01.34
Under the reciprocal exemptions, articles in which at least 20% of the value of the article is U.S. originating will not have to pay reciprocal tariffs on the U.S. content. CBP has provided further guidance on how to define and determine U.S. content.
The IEEPA FAQs page has been updated to provide further guidance on how U.S. Content is defined and determined.
Question: Is the U.S. component of a good determined in part by non-physical elements such as research and development (R&D), intellectual property rights, royalties, etc., or is U.S. content determined solely based on the physical characteristics of the good?
Answer: U.S. content is determined solely by the physical characteristics of the good.
According to CSMS #64680374 – GUIDANCE: Reciprocal Tariffs (April 5 and April 9, 2025, and referencing tariff provision 9903.01.34:
- “For articles in which at least 20% of the value of the article is U.S.-originating, the value of the article is of U.S. origin will not be subject to the reciprocal tariff. The reciprocal tariff will be assessed on the non-U.S. content.”
- “For articles that have a U.S. content of at least 20% and are subject to 9903.01.34, the article must be broken into two entry summary lines to accurately report and pay the applicable rate of duty. The first line will include the U.S. content, while the second line will include the non-U.S. content.”
Question: How is “U.S. content” defined under tariff provision 9903.01.34?
Answer: "U.S. content" refers to the portion of an article’s customs value, determined under 19 U.S.C. 1401a, attributable to components that are wholly obtained, entirely produced, or substantially transformed in the United States. At least 20% of the total customs value must be of U.S. origin for the content to qualify under 9903.01.34. The exemption applies only to the U.S. portion; the remaining non-U.S. content remains subject to duties under headings 9903.01.25, 9903.01.35, 9903.01.39, and 9903.01.43 – 9903.01.76.
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4) CBP Updates the Energy and Energy Resources of Canada List
CBP published a CSMS dated May 15, 2025, which provides a revised list of HTS that qualify under the Energy and Energy Resources of Canada List.
Goods included on the Energy and Energy Resources of Canada List are eligible for a reduced duty of 10% as opposed to the 25% Canada IEEPA Fentanyl tariff rate. If you are currently importing goods that are considered an energy resource, it will be necessary to review the new list to see if your goods still apply.
CSMS # 65054354 provides updated guidance to supersede the information in CSMS #64514918, issued on March 24, 2025.
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5) CBP Provides Updated Guidance on Articles Subject to More Than One Tariff
CBP published a CSMS dated May 15, 2025, which provides additional guidance on goods subject to multiple IEEPA, Reciprocal or Section 232 duties.
CSMS # 65054270 provides additional guidance related to CSMS# 64916414 and Executive Order (EO) 14289, which outlines the order of application when an imported article is subject to multiple tariff measures. The EO covers five specific tariff actions:
- 232 Auto/Auto Parts
- IEEPA Canada
- IEEPA Mexico
- 232 Aluminum
- 232 Steel
Tariff Prioritization Rules:
- Step 1: If an article is subject to 232 Auto/Auto Parts, it is not subject to any of the other four tariffs.
- Note: Auto parts qualifying under USMCA are exempt from 232 Auto/Auto Parts and IEEPA tariffs.
- Step 2: If not subject to 232 Auto/Auto Parts, determine if the article is subject to IEEPA Canada or Mexico tariffs. If so, 232 Aluminum and Steel do not apply.
- Note: Articles qualifying for USMCA preferential treatment are exempt from IEEPA tariffs.
- Step 3: If neither of the above applies, check for 232 Aluminum and/or 232 Steel tariffs. Duties may apply on both aluminum and steel content.
- Note: Aluminum (and derivatives) from Russia or containing Russian aluminum is subject to a 200% tariff.
These tariffs are in addition to any other applicable duties or fees under HTSUS, Section 301, antidumping/countervailing duties, etc.
Filers must report the correct Chapter 99 HTS codes for:
- Applicable additional duties under EO 14289.
- USMCA exemptions, if applicable.
Effective Date:
EO 14289 applies retroactively to entries on or after March 4, 2025.
Refunds:
Importers may request refunds for overpaid duties on covered entries (from March 4, 2025, onward) starting May 16, 2025, via post summary corrections (for unliquidated entries) or protests (for liquidated entries within the protest window).
Note:
No refunds are allowed for 232 Auto/Auto Parts tariffs under this EO, as it is at the top of the stacking order.
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6) Change to Data Reporting Date for Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) under TSCA
Environmental Protection Agency (EPA) is revising the data submission timeline for the Toxic Substances Control Act (TSCA) PFAS reporting rule by adjusting the submission start date and, accordingly, the end dates of the reporting period.
Specifically, the new data submission window will open on April 13, 2026, and close on October 13, 2026. However, small manufacturers that report solely as article importers will have until April 13, 2027, to submit their data. Originally finalized in October 2023, the rule mandates that manufacturers (including importers) of per- and polyfluoroalkyl substances (PFAS) who manufactured these substances in any year from 2011 through 2022 must report certain information to EPA, including data on exposure, and environmental and health effects.
This adjustment is necessary to provide EPA with additional time to develop and implement the reporting application needed to collect the required data. Separately, the Agency is also considering reopening portions of the rule for public comment. Delaying the start of the submission period ensures EPA has sufficient time to evaluate public input and, if needed, propose and finalize any rule modifications in advance of the new reporting window.
This interim final rule is effective on May 13, 2025. Comments must be received on or before June 12, 2025.
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