The Weekly Current

General / Compliance

As we enter the second week of the government shutdown, U.S. Customs and Border Protection (CBP) continues to operate at full staff, and cargo clearance, examinations, and most other day-to-day CBP functions remain unaffected. However, CBP has confirmed that all refund-based activities — including post-summary corrections, drawback claims, and protests — have been paused.

Regarding cargo movement, the shutdown has caused delays for products requiring review by Partner Government Agencies (PGAs) such as the USDA and FDA. Some air cargo has also been impacted by flight cancellations resulting from air traffic controller issues. So far, most cargo continues to move during the shutdown with only limited delays.

The new Section 301 “ship tax” for cargo vessels owned, operated, or built in China — as well as for all foreign-built vehicle carrier vessels — is scheduled to take effect on October 14, 2025. These fees must be paid directly to CBP by the vessel operator at least three business days prior to the vessel’s arrival at its first U.S. port. Most container carriers have stated they will not pass these charges directly to shippers and consignees as additional surcharges; however, we do expect these costs to eventually be reflected in base ocean rates.

Additionally, on October 14, the new Section 232 tariffs on lumber, furniture, kitchen cabinets, and other wood products are set to go into effect. The White House has released the following annex of tariff subheadings subject to these increases: Lumber and Timber 232 Annex. We are still awaiting final confirmation from CBP and will advise of any changes to this annex once it goes live.