The US Customs tariff exemption has been extended until June next year!
But there is an additional tax on Chinese goods, sellers, take a look!
The US Customs and Border Protection (CBP) has issued an important announcement, officially extending a key tariff exemption policy period. This marks a new dynamic in the recent game surrounding the direction of US trade policy.
Extension of exemption period for goods in transit:
The tariff exemption policy for "goods in transit" originally scheduled to end on May 28 this year has been significantly extended until June 16, 2025.
Applicable conditions: The goods must be loaded and shipped (i.e. in transit) before April 5th, 9th, or 10th, 2025 (inclusive), and must be declared to US Customs before June 16th, 2025 (inclusive).
Exemption scope: Goods that meet the above conditions can continue to enjoy reciprocal tariff exemptions based on the International Emergency Economic Powers Act (IEEPA).
Specific Chinese products face additional tariffs
The impact of the new regulations: There will be a key change in policy for Chinese origin goods that are scheduled to be shipped on April 9-10, 2025 and enter the United States before June 16, 2025 (inclusive).
Tax rate adjustment: These goods will no longer be subject to the original country specific tax rate, but will be subject to an additional 10% tariff (i.e. a total tax rate of 20%) on top of the existing 10% benchmark tariff.
The impact on cross-border sellers
Opportunities and challenges coexist
The positive aspect of the "breathing period": the extension of the exemption period undoubtedly provides valuable buffer time for many sellers who are troubled by logistics delays. Enterprises no longer need to rush to meet the originally scheduled deadline of the end of May, and can arrange the customs clearance process more calmly, reducing the clearance risks caused by time pressure. But be sure to keep in mind the new deadline: June 16, 2025!
Rising costs and compliance pressures:
Additional tariff pressure: For Chinese goods shipped during a specific window period (April 9-10), an additional 10% surcharge will directly increase import costs. Although the total tax rate of 20% has decreased compared to historical high tax rates, it still significantly squeezes profit margins and may force sellers to adjust pricing strategies or supply chains.
Stricter compliance requirements: The declaration requirements for the special HTS code (9903.01.25) for Chinese products are mandatory. The accuracy of declared information, especially the loading date, country of origin, and applicable tax rate code, is crucial. Any mistake may result in delayed goods, fines, or even refusal of entry, increasing the difficulty and risk of compliance operations.
Seller's top priority:
Immediately verify the status of goods in transit: accurately confirm the loading date and expected arrival/declaration time of all goods in transit.
Accurately identify affected goods: focus on Chinese origin goods shipped on April 9-10, 2025, and calculate the impact of additional taxes.
Ensure compliant declaration: It is essential to use the correct HTS code 9903.01.25 to declare affected goods and ensure that all declared information is accurate and error free.
Optimize logistics and customs clearance plan: Ensure that all goods wishing to enjoy exemption must complete customs declaration before June 16, 2025.
Seizing the limited window period and completing operations efficiently and compliantly will be the key to a smooth transition for sellers. By closely monitoring the subsequent policy developments and flexibly adjusting strategies, we can stand undefeated in this "survival race".