Trade Advisory Notices

On July 15, 2026, the Office of the United States Trade Representative (USTR) finalized a Section 301 action against Brazil, imposing an additional 25% ad valorem tariff on most Brazilian-origin imports effective July 22, 2026. The action follows USTR findings that certain Brazilian policies and practices related to digital trade, tariff treatment, anti-corruption enforcement, intellectual property protection, market access, and environmental concerns burden U.S. commerce. While the new duties apply broadly, USTR granted numerous product-specific exclusions, including certain pharmaceutical products, industrial raw materials, seafood products, artwork, and informational materials. Additionally, several categories—including aluminum, steel, copper articles, vehicles and parts, selected wood products, and semiconductor articles—remain excluded. Importers may also qualify for a limited in-transit exception for goods shipped before the effective date. Businesses sourcing from Brazil should immediately review HTS classifications, assess duty exposure, validate exclusion eligibility, and update sourcing and landed-cost strategies ahead of implementation.

The U.S. Court of International Trade (CIT) has provided its strongest indication yet that U.S. Customs and Border Protection's (CBP) upcoming CAPE Phase 3 program could significantly expand eligibility for IEEPA duty refunds. During a July 15 status conference, the Court confirmed that Phase 3 remains under development and may establish procedures for reliquidating certain finally liquidated entries, potentially creating recovery opportunities for importers who previously believed refund avenues were exhausted. The Court also revealed that CBP is developing additional functionality to address entries subject to open protests, signaling a broader and more comprehensive refund administration framework. While eligibility requirements and operational guidance have not yet been released, the developments suggest CAPE Phase 3 could become the most significant expansion of the refund program to date. Importers with finally liquidated entries, open protests, pending IEEPA litigation, or unresolved refund opportunities should begin identifying potentially affected entries and closely monitor forthcoming Court orders and CBP guidance.

Crane Worldwide Logistics is closely monitoring an ongoing disruption affecting Belgium's Automated Export System (AES), which supports export customs declarations. According to customs technology providers, export declarations are being submitted but are currently unable to be processed through the AES platform. Contingency procedures remain available to support continued export activity, although clearance times may be slower than normal. At this time, there is no indication that Belgian import declaration systems are affected. Our teams remain engaged with customs partners and will provide updates should the situation continue or materially impact customer shipments.

On July 9, 2026, the White House issued a Presidential Proclamation following a Section 232 investigation into imports of commercial aircraft, jet engines, and related aerospace components. While no new tariffs or import restrictions have been imposed, the Administration has directed Commerce and USTR to negotiate agreements with trading partners to address identified national security concerns. The action serves as an early warning to aerospace manufacturers, airlines, MRO providers, OEMs, and suppliers that future Section 232 measures remain possible if negotiations do not produce satisfactory outcomes. Companies with exposure to imported aircraft parts, engines, and aerospace equipment should evaluate sourcing strategies, HTS classifications, contractual tariff provisions, and potential mitigation options while closely monitoring further government guidance.

U.S. Customs and Border Protection (CBP) has enhanced its CAPE tool within the Automated Commercial Environment (ACE), introducing greater flexibility for importers seeking refunds on duties imposed under the International Emergency Economic Powers Act (IEEPA). Effective June 29, 2026, eligible entries flagged for reconciliation may now be submitted through CAPE prior to reconciliation filing -- allowing importers to accelerate refund requests while maintaining compliance with entry and liquidation timelines.

On June 3, 2026, a new Executive Order mandates sweeping changes to U.S. customs enforcement, targeting duty evasion, compliance gaps, and supply chain transparency. The directive introduces stricter importer of record requirements, higher bonding thresholds, enhanced data disclosures, and a “good standing” compliance standard enforced by CBP. Foreign importers will face increased restrictions, particularly for low-value and e-commerce shipments, while enforcement penalties rise significantly with a new minimum penalty floor. With implementation expected within 180 days, importers, brokers, and global supply chain stakeholders should proactively review their compliance frameworks, importer structures, and financial assurances to mitigate risk and ensure readiness.

The June 2026 update to the Section 232 tariff framework introduces targeted refinements to the April 2026 policy while maintaining core tariff structures on aluminum, steel, and copper imports. Key changes include expanded eligibility for the 15% tariff category, broader derivative product coverage, and a reduction in the U.S. content threshold from 95% to 85%. The revised annex structure remains central to tariff determination, with duty rates driven by HTS classification and annex alignment rather than product use. CBP guidance reinforces strict compliance expectations, requiring accurate classification, Chapter 99 reporting, and detailed documentation of metal content and origin. As classification complexity increases, importers face higher risk of misapplied duties but also potential opportunities for reduced tariff treatment. Proactive classification validation, documentation readiness, and sourcing strategy review are now critical to managing duty exposure and ensuring compliance under the evolving Section 232 framework.

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.