September 2025 Trade & Tariff Update: CBP Fact Sheets, FIT-P, Transshipping Risks & Service Alerts
Trans-Pacific Spot Rates Shift Signals New Opportunities for Shippers
After a volatile summer in the ocean freight market, the trans-Pacific trade is approaching a major shift. Spot rates have now dipped below long-term contract rates, creating a rare opportunity for importers to explore new cost-saving options. For those locked into fixed-rate contracts since the spring, this pricing reversal could be the moment to rethink their freight strategies for the rest of the year.
Contract rates signed earlier this year were based on expectations of tighter capacity and strong demand heading into peak season. But those volume projections have softened, and carriers have not reduced capacity fast enough to match. This mismatch has pushed rates downward. With spot pricing still in flux, many small and midsize importers now see an opportunity to move cargo at a lower cost than their contract commitments.
Carriers are responding by trying to raise spot market rates and gradually increasing blank sailings. So far, the shift has been slow. Some carriers are even adding capacity in October, hoping for a late-year surge. This cautious approach means spot pricing may remain favorable in the near term for shippers who can move quickly and adjust routing as needed.
Businesses that can switch between contract and spot pricing, or those working with a partner who can help evaluate those choices, are in a stronger position to protect their margins. If your landed costs are creeping up or you are exploring new strategies, our team is ready to help. Tell us what you are moving, and we will help you take full advantage of the current market conditions.
Your Quick Guide to the 2025 Tariff Rules from CBP
U.S. importers have a lot to keep track of in 2025, and the latest update from U.S. Customs and Border Protection helps make sense of it all. The CBP has released a helpful one-pager summarizing new tariffs now in effect under Executive Orders tied to Section 232 and the International Emergency Economic Powers Act. These include higher duties on steel, aluminum, autos, copper, and select imports from countries like China, India, Brazil, Mexico, and Canada. There are also changes to reciprocal tariffs, de minimis rules, and new guidance on how certain tariffs stack or do not stack together. This chart was officially updated by CBP on August 20, 2025, and remains accurate as of September 3.
If you are wondering how these tariff shifts affect your specific products or supply chain strategy, you are not alone. Many businesses are rechecking HTS codes, reviewing sourcing decisions, and planning ahead for Q4. At Southern Star Navigation, we continuously track these changes and work closely with our partners to ensure nothing falls through the cracks. Whether you need help untangling tariff stacking, confirming country-of-origin rules, or just making sense of the big picture, we are ready to help. We are Southern Star Navigation, and this is what we do best. CBP Fact Sheet Page: New Tariff Requirements for 2025 (CBP Publication No. 5117‑0825)
Section 301 China Exclusions Extended Through November 29
Importers shipping goods from China just got a little breathing room. On August 29, U.S. Customs and Border Protection confirmed that 164 product-specific exclusions and 14 manufacturing equipment exclusions under Section 301 have been extended through November 29, 2025. This means that certain products may continue to enter duty-free if the correct HTS codes are used at the time of entry. The two codes that allow you to claim the extended exclusions are 9903.88.69 for products and 9903.88.70 for equipment. These apply to shipments entered for consumption or withdrawn from warehouse between September 1 and November 29, 2025.
New 25% Duties on Imports from India Now in Effect
As of August 27, 2025, most products imported from India are now subject to an additional 25% ad valorem duty under a new Executive Order (EO 14329). This move, tied to India’s continued oil trade with Russia, adds yet another layer to the complex tariff landscape. The new duty applies in addition to any existing duties, including reciprocal tariffs under EO 14257, as well as Section 232 or antidumping duties where applicable. Most commercial imports from India will fall under HTSUS 9903.01.84, with limited exceptions, such as specific steel, aluminum, and copper products, certain Chapter 98 claims, personal baggage items, humanitarian donations, and informational materials.
If your supply chain includes Indian-origin goods, now is the time to review classifications, assess landed cost impact, and ensure your entries are filed correctly. You can view the full CBP guidance and HTS cross-references here. If anything is unclear or you want help navigating the changes, reach out to your team at Southern Star Navigation, your trusted partner in all things logistics.
Justice Department Launches New Trade Fraud Task Force
Importers should be aware that the Department of Justice has launched a powerful new Trade Fraud Task Force to crack down on customs violations, smuggling, and tariff evasion. This effort brings together teams from the Justice Department’s Civil and Criminal Divisions along with Homeland Security agencies, combining their enforcement tools and legal authority. Using laws such as the Tariff Act of 1930, the False Claims Act, and Title 18, the Task Force will pursue both civil penalties and criminal charges against companies and individuals who cheat the system by avoiding duties or bringing in counterfeit and prohibited goods.
The message is clear: trade fraud is no longer a low-risk offense. Civil lawsuits, criminal investigations, asset seizures, and whistleblower rewards are all on the table. Industries that are hurt by fraud are encouraged to step forward and report bad actors. If your company imports goods, now is the time to take a closer look at your supply chain and documentation practices. If you are unsure whether your entries or procedures meet the latest enforcement expectations, call Southern Star Navigation. Our customs brokerage team can help you stay compliant and protect your business before issues arise. Read More
CBP Cracking Down on Violations at Bonded Facilities
Customs and Border Protection has recently completed a round of surprise inspections at bonded facilities across the country and found multiple serious violations. These included missing employee lists, weak security, and even situations where workers with criminal backgrounds or illegal status were discovered through staffing agencies. CBP has reminded facility operators that they have the authority to suspend or revoke bonded status for issues such as fraud, failing to follow instructions, or unsafe storage conditions.
If your cargo moves through or is stored at a bonded warehouse, it is important to know that enforcement is increasing. This update is a good reminder to check that your facility partners are following all rules and using proper staffing practices. If you have questions about bonded cargo or want help finding a reliable and compliant facility, reach out to Southern Star Navigation. We help our clients stay informed, protected, and prepared every step of the way.
Small Nations Join Forces to Shape the Future of Trade
A new international trade group is forming, led by Singapore, the United Arab Emirates, and New Zealand. The partnership, called the Future of Investment and Trade Partnership or FIT-P, is designed to bring together about ten like-minded countries that want to keep trade open, fair, and efficient. While many larger economies have leaned into protectionist policies, this group of smaller nations is taking a different approach. Their early focus is on modernizing trade practices, especially in the digital space. That includes equal recognition of electronic and paper documents, as well as better systems for e-signatures and digital contracts.
FIT-P is not about tariffs or geopolitical rivalry. It is about finding practical ways to make global trade work better for smaller economies. The group will hold a virtual launch this November and a follow-up event in mid 2026. Countries like Morocco, Malaysia, Costa Rica, and Norway are also being considered for membership. While the United States is not part of this group, the broader push to preserve rules-based trade may help maintain some global stability in an increasingly fragmented system. FIT-P is shaping up to be a quiet but meaningful effort to rebuild trust and efficiency in how countries do business with one another.
Vietnam Becomes a Top Air Freight Hub Amid US Tariff Shifts
Vietnam is quickly rising as a major player in global air cargo, with exports to the United States and Europe soaring over the past several months. Electronics and high-value goods are leading the surge as more manufacturers shift production out of China in response to steep US tariffs. Air freight capacity between Vietnam and the US has nearly doubled compared to last year, with more direct flights now available to handle the growing demand. Companies are clearly ramping up output from their new facilities, and this season is expected to be one of Vietnam’s busiest yet for outbound air shipments.
Behind the numbers is a much larger story of supply chain realignment. With the threat of higher duties on transshipped goods and tighter enforcement on origin fraud, businesses are investing more heavily in Vietnam and reducing dependence on China. The increase in direct exports suggests that goods are genuinely being made in Vietnam, not just passing through. As manufacturers finalize new sourcing strategies, Vietnam’s position as a high-tech export hub is only expected to grow stronger heading into peak season.
CBP to Auto-Reject Incomplete Cargo Descriptions Starting September 27
U.S. Customs and Border Protection will begin automatically rejecting cargo manifests that contain vague or incomplete cargo descriptions, shipper names, or consignee names. This applies to all modes of transportation including ocean, air, rail, and truck. The update will be fully implemented in the Automated Commercial Environment (ACE) system on September 27, 2025. Generic terms such as parts, equipment, or samples without detailed information will no longer be accepted. CBP has already made the enhancement available for testing and has updated all related technical documentation.
This change primarily affects businesses and software providers who submit manifest data through the Electronic Data Interface, known as EDI. However, it also impacts importers who provide commercial documents to their freight partners. Incorrect or incomplete shipment details could cause costly rejections and delays. If you are unsure whether your cargo descriptions are compliant, contact Southern Star Navigation. Our in-house customs brokerage team is here to help ensure accuracy and keep your supply chain running smoothly.
Marine insurance is crucial for businesses involved in shipping goods internationally. It provides comprehensive coverage that safeguards shipments against various risks and uncertainties during transit by sea, air, or land. This type of insurance is essential for ensuring that businesses can recover financial losses from potential damage or loss of cargo.
Importance of Marine Insurance:
- Protection Against Financial Loss: Covers the cost of goods lost or damaged during transit, ensuring businesses do not bear the financial burden alone.
- Risk Management: Helps manage and mitigate risks associated with transportation, including natural disasters, accidents, and piracy.
- Peace of Mind: Provides reassurance that goods are protected, allowing businesses to focus on operations without worrying about potential losses.
- Legal Compliance: Often a requirement in international trade contracts, ensuring that businesses meet legal and contractual obligations.
- Comprehensive Coverage: Includes protection against various risks such as theft, fire, and other perils specific to maritime transportation.
For more information, call Southern Star Navigation at 833.782.7628 Ext. 1
or email: starsales@southernstarnav.com