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US Customs Reforms Raise Questions on HTS Entries and Transshipped Goods

Jul 9, 2025 | , , , ,

Businesses responsible for customs clearing goods into the US are adjusting to two significant Customs and Border Protection (CBP) changes that could affect classification practices and the treatment of goods in transit.

Firstly, CBP has expanded the number of Harmonised Tariff Schedule (HTS) codes allowed per entry line from 8 to 32. The change, which applies to both standard and reconciliation entries, is intended to streamline the entry process and improve digital efficiency across the Automated Commercial Environment (ACE).

The move to allow 32 HTS codes per line is a big shift, and speaks volumes about the uncertainty over future tariffs. It is clearly leaving the door open for further complexity, depending on how U.S. trade partners respond and while the largest brokers can technically handle it, those without automation or AI technology have voices concerns. 

For importers managing high-SKU consignments, the risk of misclassification or documentation errors increases significantly, potentially leading to delays, penalties or additional scrutiny.

Industry Seeks Clarity on Transshipment and Tariff Application
A second area of concern relates to the treatment of transshipped goods under the new tariffs introduced via the International Emergency Economic Powers Act (IEEPA) in April.

A coalition of 94 shipper, broker and forwarder organisations, including major retail and transport associations, has written to CBP and the Department of Homeland Security, urging them to clarify whether cargo transshipped via third countries remains eligible for tariff exemption if it left its origin before the April 5 deadline.

The industry points to longstanding CBP rulings that support exemption based on the original country of export, provided there is documentation such as bills of lading, purchase orders and invoices confirming that the US was the intended final destination.

However, it is reported that CBP’s responses have been inconsistent, with some entries flagged for duties despite meeting these criteria. Further guidance issued in May attempted to address this issue through a list of FAQs, but many in the trade community feel uncertainty persists, especially as tariff reviews continue and legal challenges to IEEPA enforcement remain unresolved.

Metro’s Support for UK Exporters and US Importers
In this changing environment, Metro’s customs brokerage services are designed to ensure that clients stay compliant, informed, and in control. Our AI, ML and automation driven brokerage platform – CuDoS – is designed to handle the expanded 32-code entry structure, making it easier to manage complex multi-SKU shipments with speed and accuracy.

For exporters selling to US group companies or under Delivered Duty Paid (DDP) terms, our US-based team at Metro Global USA provides end-to-end clearance support, including documentation validation and tariff strategy. We continuously monitor CBP guidance and help structure entries to support exemption eligibility, including shipments routed via transshipment hubs.

Whether navigating classification changes or securing the right evidence for tariff relief, Metro combines local knowledge, intelligent systems, and customs expertise to simplify compliance and protect your business.

EMAIL our managing director Andrew Smith, to learn about our customs services and CuDoS platform:

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Momentum for UK Carmakers in Landmark US Trade Deal

Jun 24, 2025 | , , , ,

British car manufacturers will benefit from cost savings and improved export competitiveness, following the formal implementation of the first stage of the UK–US ‘Economic Prosperity Deal’ signed at the G7 Summit on 16 June 2025.

Under the deal, up to 100,000 UK-built vehicles per year can now enter the United States at a reduced 10% tariff, down from the previous 25%. The change is part of a broader executive order issued by President Donald Trump to “operationalise” the agreement announced in May. 

The automotive tariff changes are already being enacted, with the US Commerce Secretary directed to implement them formally within seven days of the executive order and the UK government expects the new rates to take effect by the end of June.

Prime Minister Starmer described the development as “a very good day for both of our countries – a real sign of strength”, adding: “This now implements on car tariffs and aerospace our really important agreement.”

The deal represents a significant strategic win for the UK automotive sector, which relies heavily on US exports and was previously burdened by high tariff barriers. The new quota-based relief delivers meaningful margin gains for UK carmakers and positions them to grow market share in the world’s second-largest car market.

The agreement also eliminates US tariffs on UK aerospace components and jet engines, providing immediate benefits to another high-value manufacturing sector. UK exporters in both industries are now exempt from levies introduced under Trump’s broader national security tariffs, which have seen global rates surge as high as 50% for some goods.

Steel and aluminium remain under review. While the UK has been granted a temporary exemption from the newly doubled 50% global tariff, the original 25% rate still applies. Trump’s executive order outlines plans for a future tariff-rate quota on UK metal imports, with details to be finalised by the US Department of Commerce based on UK compliance with broader trade commitments and security measures.

In return for the reduced tariffs, the UK has agreed to allow expanded US market access for beef, ethanol, and select industrial goods. The inclusion of a 1.4 billion litre tariff-free ethanol quota, equivalent to the UK’s entire annual demand, has drawn criticism from domestic bioethanol producers who warn of damaging effects on local industry.

Despite this, the agreement is being hailed as a breakthrough for key UK export sectors. Speaking after the announcement, UK Business and Trade Secretary Jonathan Reynolds noted. “We agreed this deal with the US to ensure jobs and livelihoods in some of our most vital sectors were protected, and we are delivering on the first set of agreements in a matter of weeks.”

For the automotive sector, the speed of implementation, clarity on tariff relief, and reaffirmed transatlantic cooperation point to a more promising and profitable trading future.

To explore how Metro supports leading automotive brands with global logistics, visit metglob.azurewebsites.net/automotive or EMAIL our managing director, Andrew Smith, to discuss post-deal opportunities.

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Tariff Pause Triggers Surge in Ocean Freight Rates – But Legal Roadblocks Lie Ahead

Jun 11, 2025 | , , , , , , , , , , , , , , , , ,

Container shipping lines are driving spot rates sharply higher, with the 2025 transpacific peak season likely to begin earlier than usual, fuelled by a surge in US imports from Asia.

Spot rates on key routes are rising faster than during the pandemic-era boom. Carriers implemented general rate increases (GRIs) on 1 June and plan further hikes for mid-June and 1 July, seizing the moment while demand is high.

According to the WCI, Shanghai–Los Angeles rates surged 57% week-on-week, while Shanghai–New York climbed 39%. Since mid-April, West Coast rates are up 173%, and East Coast rates have more than doubled. For comparison, rates rose just 20% over the same period in 2021. Asia–Europe lanes are also rallying, with the Shanghai–Rotterdam index up 32% and Shanghai–Genoa rising 38%, the highest weekly increases in many months.

But this momentum may be short-lived, as a wave of new capacity is entering the market. On Asia–West Coast routes, supply will grow by 13% in June and 16% in July. This additional capacity is expected to blunt the impact of further rate hikes, and limit the length of the current rally.

At the same time, the legal outlook for Trump ‘reciprocal’ tariffs remains highly uncertain. On 29 May, a federal appeals court temporarily reinstated the tariffs, just one day after the US Court of International Trade ruled that the former president had exceeded his authority and ordered an immediate block. The Court of Appeals for the Federal Circuit in Washington paused that decision to consider the government’s appeal, with final briefs due by 9 June.

However, legal experts suggest that the original court ruling is on strong footing. Under the current framework, principally the International Emergency Economic Powers Act (IEEPA), presidential authority to impose broad-based tariffs is limited. The Court of International Trade ruled that Trump’s use of IEEPA to impose tariffs on non-emergency, peacetime imports likely overstepped constitutional bounds.

If the appeal fails, Trump’s tariffs will face two remaining paths: either a legislative push to expand presidential tariff authority through Congress, or a ruling from the Supreme Court. The latter remains a real possibility if the administration persists and seeks to test the constitutional limits of executive trade powers.

In the meantime, the legal limbo is prompting importers to accelerate orders while the tariffs remain suspended, adding further pressure to ocean freight markets. But with front-loading already well advanced, this year’s peak season is expected to be earlier and shorter than the usual August–October window. While carriers are determined to ride the wave of high rates, fundamentals suggest the next one or two GRIs may be the last before rates begin to level off.

With legal uncertainty surrounding US tariffs and ocean freight markets under intense pressure, early planning and expert guidance are more critical than ever.

Metro’s experienced sea freight and customs brokerage teams are here to support your transpacific and Asia–Europe supply chains, with in-market expertise and local operations in the US.

Whether you’re juggling critical shipments, reviewing tariff exposure, or seeking end-to-end compliance support, Metro has the insight and capability to keep your cargo moving.

EMAIL our managing director, Andrew Smith, today to stay ahead of disruption and secure your space at the best possible rates.

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Court Ruling Challenges Trump’s Trade Strategy Amid Global Uncertainty

May 29, 2025 | , , , , , , , , , , , , , , , , , , , , , ,

A U.S. federal court has ruled that President Donald Trump’s sweeping “Liberation Day” tariffs are illegal — delivering what may prove to be a major blow to his trade policy agenda, or simply a temporary setback.

On May 28, 2025, the United States Court of International Trade determined that President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing broad tariffs on imports from numerous countries. The court found that the administration’s justification did not meet the IEEPA’s requirement of an “unusual and extraordinary threat,” rendering the tariffs an improper use of executive power.

The three-judge panel unanimously held that the IEEPA does not authorise the president to unilaterally impose such sweeping tariffs, stressing the need for a clear mandate from Congress when it comes to major economic decisions. As a result, the court issued a permanent injunction against the tariffs and ordered U.S. Customs and Border Protection to stop collecting them.

The ruling requires that the tariffs be halted within 10 days. The Trump administration has announced plans to appeal, which could take the case to the U.S. Court of Appeals for the Federal Circuit.

Implications for Trade Policy
This decision directly challenges a key pillar of Trump’s trade strategy, which has leaned heavily on tariffs to address trade imbalances and shield U.S. industries. It may also influence ongoing negotiations with key partners such as the European Union and the United Kingdom by casting doubt on the legal basis for unilateral U.S. tariff actions.

While the court invalidated the sweeping global tariffs introduced on April 2 — including the baseline 10% levy and “reciprocal” duties — it did not strike down the administration’s sector-specific tariffs on imports like steel and cars, which remain in force.

The ruling is expected to embolden critics of Trump’s tariff policy across corporate America, foreign capitals, and Capitol Hill. It also comes at a sensitive moment for the administration, which is working to finalise new trade deals after suspending many of the planned tariff hikes.

The legal setback introduces fresh uncertainty into an already volatile global trade landscape — and may ultimately reshape how domestic and international actors engage with U.S. trade policy in the months ahead.

Stay informed as the US tariff and trade landscape evolves. Go to our home page to subscribe to our eBulletin updates for expert insight on the rulings, appeals, and what it all means for your supply chain strategy.

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