🚢 Important Update: CBP Clarifies "In-Transit Exclusion" for Non-Vessel Shipments

At ACM Logistics, we are committed to keeping our clients informed about regulatory changes that may impact your shipments. Today, we want to proactively share a critical update from U.S. Customs and Border Protection (CBP) that could affect your import entries.

🚨 What’s Changed?

CBP recently issued a clarification regarding the application of the “in-transit exclusion” under the International Emergency Economic Powers Act (IEEPA).

Previously, the in-transit exclusion was sometimes interpreted to apply broadly across multiple modes of transportation. However, CBP has now made it explicitly clear that the in-transit exclusion applies only to shipments transported by vessel.If an entry for your shipment was filed using this exclusion, but the shipment was transported by air, rail, or truck, it may no longer qualify under CBP’s updated interpretation.

This means that shipments moving via:

• ✈️ Air

• 🚂 Rail

• 🚛 Truck Are no longer eligible for the in-transit exclusion.

📄 You can review the official CBP update here:👉 International Emergency Economic Powers Act (IEEPA) FAQs

⚙️ What This Means for You

At ACM Logistics, we are taking immediate steps to review shipment records and have already identified entries that may fall under this new guidance.

While these entries have not yet been officially rejected by CBP, there is a potential risk of:

• 🚫 Entry Rejection: If CBP determines the entry is no longer valid under the in-transit exclusion.

• 🔄 Entry Restreaming: Rejected entries would need to be resubmitted (restreamed) correctly.

• 💰 Payment of Additional Duties: Duties and fees associated with these restreamed entries would become due within two business days of restreaming.

Why This Matters:

Failure to address affected entries promptly could lead to shipment delays, additional costs, and potential compliance issues with CBP.

✅ Recommended Next Steps

To stay ahead of these changes and minimize potential disruption:

• Review all current and past entries that utilized the in-transit exclusion for air, rail, or truck shipments.

• Be prepared to restream entries if notified by CBP.

• Set aside financial resources to cover potential additional duties within the required two-business-day window.

If you are unsure whether your shipments are affected, our compliance experts at ACM Logistics are ready to help. We can assist in auditing your entries and navigating any required adjustments.