IEEPA Tariff Refund Update: Earlier this week the Court of International Trade ruled that CBP must refund IEEPA tariffs. CIT ruled Wednesday that CBP must liquidate all import entries that were subject to tariffs imposed under the International Emergency Economic Powers Act (IEEPA) without applying those tariffs. Today, we received further information on the potential refund process with US Customs/CBP advising it could not automatically refund the tariffs due to the volume of entries and complexity of the tariffs. For example, for wine from the EU, the IEEPA tariff of 15% was not stacked on the “normal” duty rate thus if the IEEPA amount was refunded, it would not be the correct amount as the normal duty rate is rolled into the IEEPA. CBP has advised it can develop an operational system to streamline the refund process within approximately 45 days and would require each importer to file a refund claim, potentially one claim containing all entries eligible for refund. The CIT will be reviewing the proposal and we should receive further information very soon.
Section 122 Tariff Updates: Treasury Secretary Bessent announced this week that the current 10% universal tariff will be increased to 15%. We are still waiting on any official word on this change. In the meantime, 24 states have grouped together to sue the administration to legally challenge the newly imposed 10% tariff based on belief that the usage of Section 122 is misapplied and that large and serious balance of payment issues do not exist with all countries. The lawsuit was filed on Thursday, March 5, 2026, in the Court of International Trade.
Iranian Conflict & Transatlantic Ocean Carrier Surcharges: Ocean carriers are quickly reacting to the war launched by the USA and Israel against Iran. Carriers are re-routing vessels away from the Strait of Hormuz, as well as instituting “Emergency Conflict Surcharges” for cargo moving to or from the region, including Iraq, Bahrain, Kuwait, Yemen, Qatar, Oman, United Arab Emirates, Saudi Arabia, Jordan, Egypt, Dijbouti, Sudan and Eritrea. Some surcharges have been published at levels in the area of $2000/20', $3000/40' and $4000/reefer. The conflict has also led to changes in the oil market, with potential increase in prices due to disruption in the supply from this important oil producing region. So far only one carriers has announced emergency fuel surcharges for destinations outside the war region, with effective date 30 days after the announcement per the FMC requirements. Please let us know if you would like details on the current announcements. We will continue to monitor impacts on the ocean carrier fuel prices and report any changes.
War Risk Changes Enacted: In light of the recent activity in the Middle East, the cargo insurance market has begun excluding war risks from affected regions as it has previously done with the Red Sea regions and the conflict in the Ukraine. Despite delaying restrictions, WSSA’s cargo insurance provider Starr Marine has now confirmed exclusions that will go into effect March 5, 2026. The regions in question are outlined below. If you want to see the exact latitude and longitude areas excluded, please contact us for the detailed information.
- Red Sea, Gulf of Aden and Indian Ocean Boundaries.
- Iran and Iranian waters including coastal waters up to 12 nautical miles offshore.
- Persian/Arabian Gulf and adjacent waters (including Straits of Hormuz).
Partial Government Shutdown in USA Continues: The United States is still experiencing a partial government shutdown affecting the Department of Homeland Security (DHS) after Congress failed to pass a funding bill in mid-February 2026. The impasse is driven by a political dispute between Republicans and Democrats over immigration enforcement policies and oversight measures tied to DHS funding. While the House has passed a funding proposal, it has not gained enough support in the Senate to move forward. As negotiations continue, several DHS functions are operating with limited funding, affecting agencies such as TSA, FEMA, ICE, and CBP, with some employees working without pay and certain programs experiencing delays. We are continuing to monitor the shutdown and will continue to provide updates.
Carrier Blank Sailings in March: Please be aware of multiple cancelled sailings on the transatlantic trade during March as the Ocean Alliance (plus ONE) and MSC adjust their services. We are seeing cancellations on both the North Europe lanes and the Med. Please be aware of potential delays and backlogs due to this situation. On a broader scope, there has been a 122% surge in cancelled sailings across the globe for March, with most of these on the transpacific and Asia-Europe route, and now in the war risk area. Should you need specific information on cancellations, please let us know.
Come See Us at Prowein 2026: Alison Leavitt, Managing Director of WSSA will be presenting on the US Spirits Market: Tariffs, Politics & Growth Stratgies from 12:30pm to 1:30pm on March 17, in the GoSpirits area, Hall 7, level 0/C5. This presentation will cover the current state of tariffs and trade in the USA and strategies to mitigate the impact of the volatile situation. WSSA and Albatrans will have personnel from multiple countries attending and look forward to meeting current and future customers. Stop by Hall 4, Booth 03 and find out how we can help with your logistics or risk management needs. Contact us to schedule a visit with a member of the WSSA or Albatrans teams!
Save the Date for WSSA’s Annual California Event! Join WSSA for a business meeting and luncheon discussing the latest updates within the wine and spirits and logistics industries, followed by a happy hour harbor cruise showcasing the Port of Oakland. The event will take place May 8, 2026, with the business meeting at the Claremont Resort & Club from 12-3:30pm and the Harbor Cruise Tour from 4:30-7:30pm. RSVP to hrandolph@wssa.com to reserve your spot!
LCL Services from France, Italy, and Spain/Portugal: Bi-monthly departures continue from each of these countries for your small shipments, offering a per case rate from point of pick up to the Alba Wine and Spirits warehouse in Edison New Jersey. Shipments from other European countries can be added into the mix, with pick-ups offered in most European countries. Please let us know if you need any further information!
