Glitch in US Tariff Exemption System

The United States Customs and Border Protection has recently identified a technical glitch in the system designed to exempt freight shippers from the newly imposed tariffs on foreign countries. This issue, as reported by CNBC, has raised concerns among shippers and traders alike.

Exemptions and Immediate Effects

Under the current "on water" clause, cargo already en route to US ports, including shipments from China, are exempt from these tariffs. This exemption also extends to all countries covered by the 90-day duty pause announced by former President Donald Trump.

Customs' Directive to Shippers: In response to the glitch, US Customs has advised filers to submit cargo release documents separately and to complete the summary filing once the issue is resolved. The problem specifically involves the entry code used by US shippers to claim tariff exemptions, which is not functioning as intended.

Background on Tariff Announcements

The tariffs in question were announced on April 5, 9, and 10, targeting a range of foreign imports. The "on water" clause ensures that cargo shipped before these dates is not subject to the new levies, providing some relief to affected shippers during this transitional period.