News

CSMS #68577428 – Drawback Transition to Petroleum, Natural Gas & Minerals Center; CAPE IEEPA Refund System Activated

May 8, 2026

CBP issued CSMS #68577428 announcing the transition of drawback claims for petroleum, natural gas, and minerals to the dedicated Center of Excellence and Expertise (CEE). Separately, as of early May, CBP began processing first refunds through its newly activated Consolidated Administration and Processing of Entries (CAPE) system for IEEPA duty refunds, with initial disbursements targeting unliquidated entries and entries liquidated within the prior 80 days.
• All drawback claims for petroleum, natural gas, and mineral entries must now be filed with the designated Petroleum, Natural Gas, and Minerals CEE — filers using incorrect ports of entry risk delays and rejection.
• CBP's CAPE system (launched April 20, 2026) began issuing first IEEPA duty refunds in May — importers with unliquidated entries or entries liquidated within 80 days should file CAPE Declarations via the ACE Portal promptly.
• CAPE Phase 1 is limited to qualifying entry types; CBP continues to evaluate functionality for fully finalized entries and those pending AD/CVD resolution — affected importers should track system updates closely.
• Importers and customs brokers must have valid CBP Form 5106 on file and ACH enrollment in the ACE Portal to receive electronic refunds — paper check issuance ended February 6, 2026 per CSMS #67270895.
• CBP is implementing anti-fraud measures for CAPE submissions; importers should ensure all CAPE Declarations are accurate and supported by underlying entry documentation to avoid scrutiny.

https://www.cbp.gov/trade/automated/cargo-systems-messaging-service

CSMS #68554727 – Technical Corrections to Section 232 Duties on Aluminum, Steel & Copper

May 2026

CBP issued CSMS #68554727 providing technical corrections and clarification guidance on the implementation of Section 232 duties on imports of aluminum, steel, and copper. The guidance addresses the non-stacking rule for Section 232 metals tariffs and provides updated HTS subheading references and entry instructions following the April 2026 proclamation that modified tariff rates and expanded the copper tariff program.
• Section 232 metal tariffs (aluminum, steel, and copper) do not stack with each other — CBP guidance at CSMS #68253075 and this correction clarify the proper priority rules when multiple Section 232 programs apply to a single article.
• The April 2026 proclamation set a 100% ad valorem duty on patented pharmaceuticals and expanded copper tariffs — CBP's technical corrections ensure proper HTS programming and entry coding in ACE for affected products.
• Goods subject to the copper tariff must be entered into Foreign Trade Zones (FTZs) in "Privileged Foreign" (PF) status — FTZ operators must update their admission procedures and activation entries accordingly.
• Products made entirely from U.S.-origin steel, aluminum, or copper face a reduced 10% duty; products containing 15% or less metals content are exempt from Section 232 — importers should review composition thresholds for their goods.
• Compliance teams should update entry preparation procedures and ACE filing protocols to reflect the corrected HTS subheadings and revised duty rates to avoid rejection or liquidation discrepancies.

https://www.cbp.gov/trade/automated/cargo-systems-messaging-service

USTR Section 301 Forced Labor Investigations – Public Hearings Conclude (60 Economies) Section 301 / USTR Action

April 28 – May 2026

USTR held public hearings on April 28–29 (continuing into May) on the Section 301 investigations into 60 major U.S. trading partners' failure to prohibit importation of goods produced with forced labor. Initiated in March 2026 following the Supreme Court's invalidation of IEEPA tariffs, the investigations cover economies representing 99% of all U.S. imports. If USTR makes affirmative determinations, the U.S. could impose economy-specific tariffs or other import restrictions as replacement tariff authorities before Section 122's July 24, 2026 expiration.
• Post-hearing rebuttal comments closed in May — USTR is now in the deliberative phase, with potential affirmative determinations and proposed tariff actions expected later in 2026 as Section 122 authority nears its July 24 sunset.
• The 60 investigated economies include virtually all major U.S. trade partners — importers with supply chains in any of these countries should assess their forced labor compliance posture and Uyghur Forced Labor Prevention Act (UFLPA) due diligence programs immediately.
• A parallel Section 301 investigation into structural excess industrial capacity covers 16 economies — both investigations could produce overlapping tariff regimes that replicate or exceed IEEPA rates on a wide range of goods.
• If affirmative determinations result in new tariffs, they would be imposed under Section 301 authority rather than IEEPA — providing a legally durable mechanism that survived the Supreme Court's IEEPA ruling and is not subject to the Section 122 time limit.
• Importers and industry associations should monitor USTR docket USTR-2026-0133 closely and prepare supply chain mapping and social compliance documentation in anticipation of potential tariff actions or tariff exclusion processes.

https://ustr.gov/about/policy-offices/press-office/press-releases/2026/april/public-hearings-regarding-section-301-investigations-relating-failures-take-action-forced-labor

CIT Rules Section 122 Global Tariffs Unlawful (Proclamation No. 11012); Federal Circuit Stays Ruling Pending Appeal

May 7 & May 12, 2026

On May 7, a divided CIT three-judge panel (2-1) held that the 10% global tariffs imposed under Section 122 of the Trade Act of 1974 via Proclamation No. 11012 — issued by the Administration in February 2026 to replace IEEPA tariffs struck down by the Supreme Court — are unlawful. However, the injunction applied only to three specific plaintiffs (the State of Washington and its instrumentalities, and two private importers). On May 12, the U.S. Court of Appeals for the Federal Circuit issued a temporary stay of the CIT ruling while the appeal proceeds, meaning Section 122 tariffs remain in effect for all importers for now.
• Section 122 tariffs (10% global surcharge) remain in effect for all importers as of May 31, 2026, due to the Federal Circuit's stay — no refunds or duty relief is available to non-plaintiff importers at this time.
• The CIT's underlying ruling signals significant legal vulnerability for Section 122 tariffs — importers should preserve rights by filing protests and closely monitoring the Federal Circuit's expedited briefing schedule for further developments.
• Section 122 has a built-in July 24, 2026 statutory expiration (150-day maximum under the Trade Act) — the Administration is expected to rely on forthcoming Section 301 tariffs as the successor authority before that date.
• Importers seeking refunds of Section 122 duties should consult legal counsel on whether filing with the CIT as a plaintiff-intervenor is appropriate, given the narrow scope of the existing injunction.
• Compliance teams should model contingency scenarios for both the continuation and termination of Section 122 duties and the potential imposition of Section 301 replacement tariffs, with timelines tied to the July 24 expiration.

https://www.cit.uscourts.gov/

EO 14406 – Restoring Integrity to America's Financial System

Executive Order

May 19, 2026

President Trump signed EO 14406 directing Treasury and federal financial regulators to tighten customer identification and anti-money-laundering (AML) controls across U.S. financial institutions. The order focuses on combating payroll tax evasion, money laundering, labor trafficking, and structuring schemes, and instructs regulators to assess risks linked to extending financial services to undocumented populations. It also mandates proposed changes to Bank Secrecy Act (BSA) regulations within set timeframes.
• Treasury must issue a formal advisory to financial institutions identifying red flags tied to payroll tax evasion, concealed account ownership, off-the-books wage payments, and labor trafficking within 60 days.
• Regulators are directed to propose BSA rule changes strengthening customer due diligence (CDD) requirements, with potential revisions to customer identification program (CIP) standards, including risks from foreign consular ID cards, within 180 days.
• CFPB instructed within 60 days to consider whether potential deportation or loss of wages should factor into "ability-to-repay" underwriting standards under 12 C.F.R. Part 1026.
• Federal financial regulators must issue guidance within 60 days on managing credit risks, with implications for trade finance, supply chain lending, and cross-border payments compliance programs.
• Financial institutions should immediately review existing CIP, CDD, and AML programs against anticipated guidance; importers and freight payment firms with correspondent banking relationships may face enhanced scrutiny.

Official source — whitehouse.gov↗

U.S.-Taiwan Agreement on Reciprocal Trade (ART) — May 2026 Federal Register Implementation: Section 232 Modifications on Auto Parts, Aircraft Components & Wood Products Trade Agreement / Fed. Register Notice

May 27, 2026

The U.S.-Taiwan Agreement on Reciprocal Trade (ART) — signed February 12, 2026 under the auspices of AIT and TECRO, formalizing a January 15, 2026 MOU — reached its first major implementation milestone in May 2026. A Federal Register notice (Doc. 2026-10571, effective May 1, 2026) modified the HTSUS to deliver preferential Section 232 treatment for Taiwanese auto parts, timber, lumber, and wood derivatives, and removed derivative Section 232 steel, aluminum, and copper duties from Taiwanese aircraft components. Late May Federal Register action further implemented ART tariff relief, capping combined rates at 15% on affected Taiwanese goods. The ART reduced the U.S. reciprocal tariff on Taiwanese goods from 20% to a 15% all-in cap (inclusive of MFN rate), and commits Taiwan to eliminate or reduce 99% of tariff barriers on U.S. goods through phased three-year implementation — pending ratification by Taiwan's Legislative Yuan.
• Effective May 1, 2026, the HTSUS caps the combined Column 1 duty plus Section 232 rate at 15% for Taiwanese auto parts, timber, lumber, and wood derivatives — for products with an MFN rate at or above 15%, no additional Section 232 applies; for those below 15%, Section 232 is reduced to close the gap to exactly 15%.
• Derivative Section 232 steel, aluminum, and copper tariffs eliminated for Taiwanese aircraft components effective May 1, 2026 — importers of Taiwanese aerospace parts should update entry filings and seek refunds for any overcollection on qualifying entries on or after that date.
• Taiwanese auto parts admitted into a U.S. Foreign Trade Zone (FTZ) on or after May 1, 2026 must be classified under Privileged Foreign (PF) status per 19 CFR 146.41 — FTZ operators handling Taiwanese automotive goods must update admission procedures and activation entries immediately.
• The broader ART commits Taiwan to $500 billion in combined investments and credit guarantees in U.S. semiconductor, AI, and energy infrastructure, plus $85 billion in U.S. goods purchases through 2029 (including $44.4B LNG, $15.2B civil aircraft, $25.2B power equipment) — logistics and trade finance providers supporting these flows should assess classification and supply chain strategy now.
• Full ART entry into force awaits ratification by Taiwan's Legislative Yuan, which remains pending; no bilateral tax treaty is included — current tariff relief is delivered via unilateral U.S. HTSUS modifications only. Compliance teams should monitor USTR, Commerce, and CBP CSMS for further implementation guidance as ratification progresses.

https://www.federalregister.gov/documents/2026/05/28/2026-10571/implementing-certain-tariff-related-elements-of-a-trade-and-security-agreement-between-the-american

https://ustr.gov/about/policy-offices/press-office/fact-sheets/2026/february/fact-sheet-us-taiwan-agreement-reciprocal-trade