In-Transit Tariff Exception Limits Noted

In a May 15, 2025 update, U.S. Customs and Border Protection (CBP) clarified that U.S.-bound goods transferred to a different vessel at a foreign port after the applicable cutoff dates are not eligible for the “in-transit” exception to reciprocal tariffs imposed under Executive Order 14257.

According to a client advisory from the Husch Blackwell Trade Team, “CBP confirmed that the in-transit exception does not apply to goods loaded onto a ‘feeder’ vessel prior to the cutoff date if the cargo is transferred to another vessel after that date for final transport to the U.S.” CBP emphasized that in such cases, the goods “were laden onto a vessel destined for the U.S. after the cutoff date,” disqualifying them from the exception.

CBP illustrated with an example: cargo shipped before April 5 (for HTSUS 9903.01.28) or April 9 (for HTSUS 9903.01.43–9903.01.76, currently suspended) aboard a feeder vessel to an intermediate foreign port, then transferred to another vessel headed to the U.S. after the cutoff, does not qualify.

By contrast, cargo that remains on a U.S.-bound vessel—despite intermediate port stops—does qualify, as it was “laden onto a vessel destined for the U.S.” prior to the cutoff and was never unladen or transferred.