The Trump tariff exemption system malfunctioned for 10 hours before being fixed, and chaos is still spreading.

On the 11th local time, the U.S. Customs and Border Protection (CBP) issued an alert informing users that their system for exempting freight tariffs had experienced a malfunction. The malfunction lasted for more than 10 hours and has since been restored. Affected freight includes all trade goods from countries currently in the 90-day tariff suspension period implemented by the Trump administration. The alert explained that U.S. Customs had implemented an immediate fix for the "malfunction reported earlier today" previously, the Automated Commercial Environment (ACE) system had failed to apply the lower 10% tariff rate to goods declared as in-transit since April 9. CBP added that users need to "re-submit applicable entry summaries in the ACE system as soon as possible and no later than ten days after the release date, in compliance with the in-transit terms." The agency also emphasized that they will "continue to ensure that U.S. tariff revenues are collected in full, and will provide further guidance to the trade through CSMS messages as appropriate." An update released by Customs at 8:19 am showed that they were aware of the failure of the U.S. consignor's declaration code used to apply for tariff exemptions and stated that "the issue is under review." The alert advised declarants to "send separate requests for release of goods and submit summary documents after the issue is resolved." Normally, U.S. importers need to submit both a release form and financial documents when paying freight charges. To maintain the flow of goods, Customs advised importers to currently submit release forms first and submit financial documents after the system is fixed. The temporary tariff policies applicable to multiple countries and the still valid tariffs on China are based on the sailing date (i.e. the date the goods leave the factory or warehouse). This policy, called the "in-transit" provision, applies to all goods shipped to the U.S. before the tariff announcements on April 5, 9, and 10. Despite the increase in tariff rates on Chinese goods to 145% and the recent implementation of a series of new tariffs, the "in-transit" provision remains unchanged. For U.S. consignors and supply chains, the current uncertainty and panic surrounding tariff policies make this malfunction all the more troublesome. It also raises questions about Customs' enforcement of new policies and their ability to collect tariffs, which are a key pillar of the Trump administration's economic goals. In the face of conflicting interpretations of various executive orders, social media posts, and Customs notices, U.S. businesses and industry organizations are working hard to clarify the timing of the implementation of new tariffs. "President Trump's statements on social media regarding the effective date of tariffs do not match the text of the executive orders, causing confusion," said Jarred Varanelli, Vice President of Sales at logistics company Savino Del Bene. "Social media posts are not legal justification for pausing or increasing tariffs. Amid frequent changes in regulations, customs brokers in the industry will face significant challenges." Although President Trump has repeatedly emphasized that tariffs are in effect and being collected, several U.S. consignors have told the media that their container goods have not been subject to higher tariffs yet (at the latest, until they arrive at the port on Thursday). Dewardric McNeal, Managing Director and Senior Policy Analyst at Longview Global, focusing on international trade, diplomacy, and defense affairs, pointed out that while system malfunctions are inevitable, this unfortunate incident will only intensify doubts about Customs' ability to keep up with the pace of tariff policies. "Regardless of whether you agree with the policy itself, one has to ask: do we have the capacity to implement so rapidly? This malfunction may indicate that we need more time to prepare. It seems peculiar that this issue occurred at this time, adding confusion for policymakers." To maintain the flow of goods, Customs requires businesses to complete tariff payments within ten days after goods are released. "In short, this is a mess," McNeal admitted. "While it won't halt the flow of goods, it will increase the paperwork burden for U.S. businesses which are already dealing with the impact of fluctuating tariffs. They will need to redeclare later, trade will continue, but the complexity will significantly increase." The U.S. is currently negotiating tariff agreements with over 75 countries, with President Trump claiming to tailor individual terms for each country. The uncertainty in Customs clearance processes is exacerbating broader commercial anxieties. Rick Woldenberg, CEO of Learning Resources, a three-generation family business in China producing educational toys, stated that the company originally planned to expand its new building this year, but is now pausing expansion plans and reevaluating its financial situation to seek ways to cut expenses. "I can't run a business based on social media posts. This severely disrupts my business decisions from planning for growth to struggling to survive. This trade policy is enough to destroy me and hundreds of similar small businesses, leading to a wave of unemployment. If businesses go bankrupt, banks and insurers that serve various businesses will also be affected." Woldenberg predicts widespread chaos: "The interconnectivity of all parties was not fully appreciated when this policy was created. They were indifferent to the details, which will plunge business and the economy into the abyss." -Translated by DataTablesetScale