To Our Valued Partners,

New CBP Guidance Clarifies Reciprocal Tariff Filing Rules Effective August 7, 2025

U.S. Customs and Border Protection (CBP) released updated guidance on August 4, 2025, ahead of the August 7 effective date, offering further clarification on the reciprocal tariffs outlined in Executive Order 14257 and its July 31 amendment. If you missed our original advisory yesterday, which includes all country-specific tariff rates, exemption tables, and official source links, click here to view it. Today’s advisory expands on that guidance with new CBP filing instructions, updated HTS codes, and additional clarifications on in-transit rules and transshipment enforcement.

Here are the most important takeaways:

✅ China Rate Clarified: Goods from China (including Hong Kong and Macau) remain subject to a 10% reciprocal tariff under HTSUS 9903.01.25.

✅ EU Filing Instructions: Entries must use specific headings depending on the Column 1 general duty rate:
• If ≥ 15%, file under 9903.02.19 (no reciprocal tariff)
• If < 15%, file under 9903.02.20 (rate adjusted to total 15%)

✅ In-Transit Goods: Articles the product of any country that were
(1) loaded onto a vessel at the port of loading and in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. EDT on August 7, 2025, and
(2) are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on August 7, 2025, and before 12:01 a.m. EDT on October 5, 2025,
are subject to the 10% ad valorem reciprocal tariff and should be filed under heading 9903.01.25.

✅ Canada & Mexico: Eligible entries remain exempt from reciprocal tariffs when properly filed under 9903.01.26 (Canada) or 9903.01.27 (Mexico).

✅ Section 232-Covered Products: Items already subject to Section 232 duties (e.g., steel, aluminum, copper) are still exempt from these tariffs and must be filed under 9903.01.33.

✅ Annex II Clarification: CBP guidance confirms that the countries listed in Annex II are subject to specific reciprocal rates or exemptions as detailed under HTSUS Note 9903.01.32.

✅ Transshipment Warning: Goods that CBP determines were transshipped to evade reciprocal duties are subject to an additional 40% ad valorem penalty under HTSUS 9903.02.01. This penalty is in addition to all other applicable duties, taxes, fees, and penalties, and is not eligible for mitigation under 19 U.S.C. § 1592.

📄 Read the Full CBP Guidance (CSMS #65829726)

Not Sure Where You Stand on Tariffs?

I am here and ready to help. With tariffs now in effect and pricing still at record lows, now is the time to review your entries, HTS codes, and country sourcing. Waiting could cost more later.

📞 Call 833 782 7628 Ext. 1
or
🔗 Visit Southern Star Navigation