On April 11, 2025, U.S. Customs and Border Protection (CBP) reported a significant system glitch affecting the Automated Commercial Environment (ACE) — the primary platform used by importers and customs brokers to submit trade data and claim tariff exemptions. The issue is raising concerns among freight companies and U.S. importers who rely on the system to ensure goods enter the country with the correct tariff status.
What Happened?
According to CBP, the technical glitch is interfering with the proper application of Section 301 tariff exclusions, which are special exemptions granted to specific imported goods, particularly from China. These exemptions are designed to ease the financial burden on U.S. companies affected by the broader tariff regime initiated during previous trade disputes.
Due to the system error, some importers have reported that their eligible goods are being charged full tariff rates despite previously approved exclusions. This could result in companies paying millions of dollars in duties that they shouldn’t owe — and may have to later claim refunds for.
CBP’s Response
CBP confirmed the issue on its website and through notices to the trade community, stating:
“We are aware of the technical issues impacting the ACE system’s processing of Section 301 exclusions and are actively working to resolve the problem.”
The agency emphasized that this is a technical processing error, not a policy change, and that it is prioritizing a resolution. However, CBP has not yet offered a specific timeline for when the problem will be fully resolved.
Impact on Importers and Logistics Providers
The glitch has created confusion and frustration within the trade and freight community. Customs brokers, freight forwarders, and legal trade compliance professionals are now forced to monitor imports manually and submit additional documentation or correction requests to avoid being incorrectly billed.
A customs attorney, speaking to CNBC on condition of anonymity, said:
“Some of our clients are seeing six-figure duties they shouldn’t be charged. It’s a serious issue — especially for companies that move high-volume or high-value goods.”
Logistics firms have reported delays in clearing shipments as they double-check tariff classifications and work with CBP to avoid penalties or overpayments. In some cases, companies may need to file post-summary corrections or protest claims to get refunds for incorrect duties.
Why It Matters
The ACE system is a cornerstone of U.S. trade infrastructure, handling over $2 trillion in goods annually. It supports real-time processing for import and export data, regulatory compliance, and coordination among multiple government agencies. A disruption of this magnitude not only affects individual companies but also risks slowing down supply chains — particularly during a time when global logistics are already under pressure from geopolitical and economic uncertainties.
Trade experts warn that if the glitch persists, it could cause a backlog in customs processing and increase administrative burdens on both government agencies and private companies.
What’s Next?
CBP has encouraged all importers to closely review their entry summaries, particularly those involving Section 301 tariff exclusions, and to contact the agency if discrepancies are found. They also advised importers to retain detailed records in case refund claims are needed later.
In the meantime, customs brokers and trade lawyers are advising clients to proceed with caution and maintain open communication with CBP until the issue is resolved.
