Trade Advisory Notices

U.S. Customs and Border Protection (CBP) has confirmed through ruling HQ H349649 that importers may continue to apply first sale valuation in multi-tiered supply chains, provided strict legal and documentation requirements are met. The ruling emphasizes that the transaction between the foreign manufacturer and middleman must represent a bona fide sale conducted at arm’s length, with goods clearly destined for export to the United States. CBP highlighted that eligibility depends on substantive commercial realities, including the transfer of title and risk of loss to an independent middleman acting as a buyer and seller, not an agent. Importers must also maintain a complete and transparent documentation trail in line with T.D. 96-87, including contracts, invoices, proof of payment, and shipping records. This decision reinforces that CBP will evaluate the substance of transactions over their structure. Importers leveraging first sale valuation should ensure their supply chain arrangements reflect genuine commercial activity and that all supporting documentation is audit-ready to withstand regulatory scrutiny.

The United States Trade Representative has determined that several Brazilian trade and regulatory practices are unreasonable and restrict U.S. commerce, triggering potential action under Section 301. Proposed measures may include tariffs of up to 25% on a wide range of Brazilian-origin goods, with final decisions expected by mid-July 2026 following a public comment process. The scope of the determination extends beyond traditional tariff concerns, highlighting issues related to digital trade, intellectual property protection, environmental policy, and market access. As a result, companies operating with Brazil face potential cost increases, supply chain disruption, and evolving compliance requirements. Organizations should assess their exposure by reviewing sourcing strategies, HTS classifications, and country of origin determinations, while also considering participation in the public comment process. Proactive planning is essential as the situation develops.

Ongoing litigation before the U.S. Court of International Trade continues to shape the timing and scope of refunds tied to tariffs imposed under the International Emergency Economic Powers Act. While the Court has issued an injunction directing refunds, implementation remains partially stayed and subject to government challenge. Currently, Customs and Border Protection is processing refunds for unliquidated entries, representing the most immediate recovery opportunity for importers. However, entries that have been finally liquidated may require court-ordered reliquidation, creating delays and dependency on litigation outcomes. Importers that have not initiated legal action may face additional uncertainty regarding eligibility, as jurisdictional challenges remain under review. Operational constraints within CBP systems are also expected to impact the pace and sequencing of refunds, with phased processing anticipated. A key hearing scheduled for June 9, 2026 will determine whether the current stay is lifted, while further appeals may extend the timeline. Given these dynamics, importers should take a proactive approach by segmenting entries, validating claims, evaluating legal strategy, and adjusting financial forecasts to reflect ongoing uncertainty and phased recovery expectations.

The U.S. Consumer Product Safety Commission (CPSC) has finalized a rule requiring importers to electronically submit product safety certificate data for regulated consumer products at the time of entry. Effective July 8, 2026, with Foreign Trade Zone shipments following on January 8, 2027, this requirement applies to all CPSC-regulated goods including children’s products, general-use consumer products, and low-value (Section 321) shipments. While certification requirements remain unchanged, importers must now transmit detailed certificate data through CBP’s Automated Commercial Environment (ACE), either directly within the entry or by reference via the CPSC Product Registry. Importers should begin assessing product applicability, validating documentation, aligning with suppliers and laboratories, and preparing internal systems and broker workflows to mitigate compliance risk and potential shipment delays.

On May 7, 2026, the U.S. Court of International Trade (CIT) issued Slip Opinion 26-47 in consolidated cases challenging U.S. tariff actions under IEEPA and Section 122 authorities. The Court granted summary judgment and permanent injunctive relief solely to a limited group of plaintiffs—including Burlap & Barrel, Inc., Basic Fun, Inc., and the State of Washington—while dismissing numerous state claims for lack of standing and denying broader injunction requests. Importantly, the ruling does not apply universally and does not suspend or invalidate Section 122 tariffs for other importers. Companies not named in the case should continue to pay duties as required and should not assume automatic refund eligibility. The decision represents a final, case-specific merits determination, with any broader impact dependent on future appellate outcomes. Importers should closely monitor appeals, assess liquidation and protest timelines, and evaluate whether strategic or protective actions are warranted as further legal clarity develops.

U.S. Customs and Border Protection has announced the activation of a new process for requesting refunds of tariffs collected under the International Emergency Economic Powers Act. Beginning April 20, 2026, CBP will open Phase 1 of the Consolidated Administration and Processing of Entries (CAPE) system within the ACE Portal. Importers and customs brokers must submit refund requests directly through CAPE, as refunds will not be issued automatically. Under this process, CBP will remove IEEPA tariff charges, recalculate duties, complete its standard review, and issue approved refunds electronically. Refunds will be grouped by importer rather than by individual shipment, and timing will depend on CBP’s normal review procedures. Importers must have ACE Portal access and valid electronic payment details on file to avoid delays. Submission of a request does not guarantee approval or accelerate review timelines.

U.S. Customs and Border Protection has released a dedicated IEEPA Duty Refund webpage consolidating official guidance on how duties imposed under the International Emergency Economic Powers Act will be administered and refunded through the CAPE framework in ACE. The guidance clarifies that only the importer of record may request refunds, which apply exclusively to IEEPA-specific duties and are dependent on liquidation status. CBP confirms that CAPE processing is being implemented in phases, with unliquidated entries prioritized, and that refunds generally will not be issued until liquidation or reliquidation occurs. Electronic ACH enrollment is mandatory, and several entry types are excluded from Phase 1 processing. CBP emphasizes that the guidance is informational only and does not guarantee eligibility, timing, or refund amounts.

On April 2, 2026, the White House issued a new Presidential Proclamation under Section 232 of the Trade Expansion Act of 1962 reinforcing tariffs on aluminum, steel, and copper, as well as certain derivative products. The Administration reaffirmed that imports of these metals continue to threaten U.S. national security and introduced a more uniform framework for tariff assessment and application. Key changes include applying duties to the full customs value of covered articles rather than metal content alone, standardizing tariff rates across metals and derivative products, and establishing exclusions based on material composition thresholds. The proclamation also provides lower tariff treatment for products manufactured abroad using U.S.‑origin metals that meet melt‑and‑pour or smelt‑and‑cast criteria. Importers should expect continued enforcement of elevated Section 232 duties and are encouraged to review product classifications, bills of materials, and sourcing documentation to assess exposure under the revised framework.

U.S. Customs and Border Protection has provided the Court of International Trade with an update on the removal and refund of duties imposed under the International Emergency Economic Powers Act. The update outlines CBP’s phased rollout of the CAPE claim portal, which will be the exclusive mechanism for submitting IEEPA tariff refund requests, and confirms that refunds will not be issued automatically. Phase 1 of the CBP IEEPA refund process will prioritize unliquidated entries and entries liquidated within the 90‑day reliquidation window. For these entries, CBP will remove IEEPA duties, recalculate tariffs, and issue electronic refunds through ACE following liquidation or reliquidation. Certain entry types, including finally liquidated, reconciliation, drawback, and protested entries, are excluded from Phase 1 and will be addressed in later CAPE development phases.

Following a U.S. Court of International Trade ruling invalidating IEEPA-based tariffs, this trade advisory explains that U.S. Customs and Border Protection (CBP) must treat all import entries — unliquidated, liquidated, or even final — as if those duties never applied. CBP is implementing a new ACE system called CAPE to centrally process refunds, and importers must file refund claims through CAPE to receive their IEEPA tariff refunds. Part of ongoing America First tariff and trade updates.