Background
Alba’s client is a major food ingredient supplier and leading importer of organic and natural sweeteners serving both retail and industrial customers across North America. The company is heavily invested in fair-trade sugar, agave, and honey in the U.S. market, and champions sustainable sourcing and regenerative agriculture.
Today, the company sources sugar from farming communities around the world, including Brazil, a key supplier in the organic sugar trade. Its Fair-Trade commitment and growing footprint in regenerative agriculture make it an influential voice in ethical sourcing and sustainability within the food manufacturing sector.
The Problem
In mid-2025, our client faced a sudden and costly challenge. U.S. Customs and Border Protection (CBP) implemented a new 40% tariff on Brazilian imports under the International Emergency Economic Powers Act (IEEPA)—on top of Brazil’s existing 10% rate. The change threatened to increase landed costs by nearly $20 million in additional duties, disrupting import viability for that season’s sugar shipments.
The situation was especially complex because several of the company’s sugar shipments were already in transit under bond when the new tariff took effect. This created uncertainty about whether the 40% rate applied to goods already in route, and whether CBP would treat them as subject to the new duty schedule.
The priorities were clear:
- Maintain full compliance with CBP and avoid penalty or negligence exposure
- Determine whether in-transit shipments could legally remain under the prior 10% rate
- Withdraw bonded goods quickly to avoid incurring an additional 40% IEEPA duty
The Solution
Our Senior Customs Brokerage Manager, Mark Tedesco, Account Manager and Customs Brokerage Specialist, Derek Aungst, and VP of Customs Brokerage, Adam Lees, worked closely with our client’s trade counsel to craft a risk-controlled filing strategy. Rather than rushing to process entries under uncertain conditions, the Alba Group took a step-back approach, emphasizing clarity and documentation at every stage.
The team:
- Reviewed our client’s legal position asserting in-transit eligibility for the lower 10% tariff
- Consulted with CBP’s Trade Remedy Division, referencing current CSMS and IEEPA guidance to ensure alignment with federal updates
- Documented all communications, legal opinions, and CBP references in the importer’s profile for future audit protection
Through this collaboration, our client was able to proceed with bonded withdrawals at the 10% rate, protecting its shipments without compromising compliance integrity. CBP’s acknowledgment of the supporting documentation and consistent communication established a strong compliance trail for any future review.
The Outcome
By aligning trade law expertise with hands-on broker strategy, our client avoided a potential $20million duty liability. The approach not only safeguarded immediate shipments but also built a framework for managing future tariff volatility.
As global trade policy continues to evolve, this case underscores the value of real-time collaboration between importers, legal advisors, and customs specialists assuring that even in moments of uncertainty, compliance and strategy move in step.
In the end, our client gained:
- A clear, defensible position under IEEPA for in-transit shipments
- Millions in avoided duties
- Uninterrupted sugar imports for the season
- Peace of mind knowing that the Alba Group’s compliance experts were proactively managing CBP engagement and risk exposure
