News

USMCA Joint Review (July 1, 2026): U.S. Declines to Renew — Annual Review Cycle Triggered Through 2036

On July 1, 2026, the USMCA Free Trade Commission held its mandatory six-year joint review under Article 34.7 of the Agreement. After a virtual meeting among trade ministers of the United States, Mexico, and Canada, USTR Ambassador Greer announced that the United States declined to confirm its intention to extend the Agreement for an additional 16-year term, stating formally: "The United States did not agree to renew the USMCA in its current form." This decision activates Article 34.7.4, which triggers an annual review cycle — meaning the three countries must now hold a joint review every year until either all parties agree to extend the Agreement or it expires on July 1, 2036. Critically, the USMCA remains fully in force: all current preferential tariff rates, rules of origin, investment protections, and dispute-settlement mechanisms remain operative. The U.S. position sets the stage for intensified bilateral renegotiation with Canada and Mexico on automotive content requirements, digital trade, labor, dairy, energy, and migration issues.

• USMCA is not terminated — the Agreement's 16-year term runs through July 1, 2036, and all current preferential tariff treatment, rules of origin, and compliance obligations remain fully in effect; importers claiming USMCA preference should continue to maintain qualifying origin documentation without interruption.
• Annual review cycles create sustained policy uncertainty — the Administration has signaled it will use each annual review to press for additional concessions on automotive rules of origin (which are expected to tighten), dairy market access, digital trade, and energy; importers with USMCA-dependent supply chains should model scenarios in which USMCA rules are renegotiated or tightened on a 12-month rolling basis.
• The Section 338 tariffs on Canada announced July 20 (effective August 19) are directly linked to U.S. frustration in the USMCA review process — the Administration has made clear that USMCA preference does not shield Canadian goods from Section 338 tariffs, creating a significant new compliance overlay for Canadian importers and their U.S. buyers.
• Mexico and Canada are negotiating separately with the U.S. on bilateral issues — the Administration has signaled a possible two-track approach that could produce diverging rules and concession timelines for each country, potentially fracturing the trilateral framework and creating asymmetric compliance obligations for cross-border supply chains.
• Companies with North American supply chains built on USMCA certainty — particularly in automotive, aerospace, agriculture, and energy — should immediately engage trade counsel to map rule-of-origin scenarios and assess exposure if specific provisions are renegotiated, tightened, or suspended during the annual review process.

Official source — ustr.gov ↗

Commerce/BIS Initiates Section 232 National Security Investigation into Anthracite Coal & Metallurgical Bituminous Coal Imports

On June 29, 2026, the Secretary of Commerce initiated a Section 232 national security investigation into imports of anthracite coal (HTSUS 2701.11.0000) and metallurgical bituminous coal (HTSUS 2701.12.0010). The Federal Register notice was published July 7, 2026. The investigation is primarily focused on these coal products as critical materials for domestic steel production and industrial processes, and is evaluating whether they could be considered derivative articles of steel for coverage under Section 232 tariffs. This follows the Administration's pattern of rapidly expanding Section 232 investigations to cover virtually every critical industrial input. Public comments were due July 21, 2026. The investigation timeline allows up to 360 days for completion, placing the latest possible presidential action deadline in late June 2027.

• Anthracite coal is the highest-rank coal (86–97% carbon content) and is a critical feedstock for domestic steel production, water filtration, and industrial chemistry — U.S. steel mills and anthracite-dependent industrial operators should submit technical comments to BIS documenting the domestic availability gap and the impact of potential tariffs on their operations.
• Vietnam, Russia, and China are among the top suppliers of anthracite coal to the U.S. market — companies sourcing from these origins face the highest potential tariff exposure and should immediately assess alternative supply sources and the cost impact of potential Section 232 tariffs (which historically have ranged from 25% to 50%).
• The investigation's scope includes the question of whether anthracite and metallurgical coal should be classified as "derivative articles of steel" under the existing Section 232 metals proclamations — this classification question has significant implications for duty treatment retroactively and going forward.
• This is the latest in a rapidly expanding series of Section 232 investigations — following steel, aluminum, copper, autos, trucks, timber, semiconductors, pharmaceuticals, and commercial aircraft — indicating that Commerce/BIS is systematically extending national security scrutiny to all critical industrial supply chains, with coal being the most recent addition.
• Coal importers and downstream manufacturers (steel mills, coking operations, water utilities) should immediately engage trade counsel to participate in the Section 232 comment process and begin scenario planning for potential tariff outcomes; the investigation could result in tariffs, tariff-rate quotas, or specific exclusion mechanisms depending on Commerce's findings.

Federal Register Notice — bis.gov ↗

Proclamation 11040 — Section 232 Investigation Concludes: No Immediate Tariffs on Commercial Aircraft, Jet Engines & Parts; 180-Day Negotiation Window Opened

President Trump signed Proclamation 11040 on July 9, 2026, concluding the Commerce Department's Section 232 investigation into imports of commercial aircraft, jet engines, and their associated parts — an investigation initiated in May 2025. The Secretary of Commerce found that such imports are being imported in quantities and under circumstances that threaten to impair U.S. national security, given risks from foreign supply chain dependence, counterfeit components, and insufficient domestic manufacturing capacity. However, Commerce recommended no immediate tariffs, instead directing the Secretary of Commerce and USTR to jointly pursue trade agreement negotiations with foreign partners to address the national security threat within 180 days. If satisfactory agreements cannot be achieved, tariffs remain available as a future response.

• No tariffs are currently imposed on commercial aircraft, jet engines, or parts — but the positive national security finding means tariffs remain a ready option if the 180-day negotiation window (expiring approximately January 6, 2027) does not produce satisfactory bilateral agreements.
• Airlines, aerospace manufacturers (Boeing, Airbus buyers, lessors), MRO providers, and component importers should closely track negotiation progress with key aircraft-parts sourcing countries (France, Germany, UK, Canada, Japan) and model tariff-exposure scenarios for fleet acquisition and maintenance contracts currently under negotiation.
• The proclamation provides a strong incentive for foreign trading partners to offer concessions — countries that reach bilateral agreements with Commerce/USTR within 180 days may obtain permanent tariff exemption for their aircraft and engine exports, similar to the favorable treatment received under other Section 232 bilateral deals.
• Derivative Section 232 steel, aluminum, and copper tariffs continue to apply to aircraft components that contain covered metals — the July 9 proclamation does not alter existing metal-content tariff treatment; importers should continue filing under the applicable Section 232 HTS codes for metallic aircraft components.
• This action signals a broader pattern: the Administration is now extending Section 232 national security scrutiny to virtually every major industrial supply chain (steel, aluminum, copper, autos, semiconductors, pharmaceuticals, timber, and now aerospace) — compliance teams across all manufacturing sectors should monitor BIS for new Section 232 investigation announcements.

Official source — whitehouse.gov ↗

USTR Finalizes 25% Section 301 Tariff on Brazil — Effective July 22, 2026

On July 15, 2026, USTR published its final Federal Register notice imposing a 25% additional Section 301 tariff on most goods originating in Brazil, effective at 12:01 a.m. ET on July 22, 2026 — two days ahead of the Section 122 expiration and the global forced-labor Section 301 action. The action concludes a year-long investigation into six categories of Brazilian conduct: digital trade and electronic payment rules, preferential tariff structures, anti-corruption enforcement failures, inadequate intellectual property protection, ethanol market access restrictions, and practices facilitating illegal deforestation. USTR received over 360 public comments and held two public hearings. The 25% tariff does not stack with existing Section 232 tariffs on steel, aluminum, copper, autos, or other Section 232-covered products from Brazil. An exemption annex covers 1,600+ HTSUS subheadings including coffee, beef, orange juice, Brazil nuts, cocoa, iron ore, petroleum products, pharmaceuticals, and approximately 430 civil aircraft lines.

• The 25% tariff applies across the broad universe of Brazilian goods not specifically listed in Annex I — importers must work directly from the HTSUS-level exemption list; general product descriptions are insufficient to determine coverage, and a single misclassified entry could result in significant unanticipated duty liability.
• The Brazil 25% tariff may stack on top of the new 12.5% Section 301 forced-labor tariff (effective July 24) for goods of Brazilian origin not exempt under either action's annex — importers should calculate effective rates using the correct priority order and confirm whether stacking applies to each of their Brazilian HTS codes.
• FTZ treatment: Brazilian goods admitted into a U.S. Foreign Trade Zone on or after July 22, 2026 must be admitted under Privileged Foreign (PF) status — FTZ operators with Brazilian-origin inventory should immediately audit admissions records and update zone procedures to ensure compliance.
• In-transit relief is available only for ocean freight shipments loaded on vessels and in transit before 12:01 a.m. ET on July 22, 2026, and entered for consumption before 12:01 a.m. ET on July 29, 2026 — importers with Brazilian goods already on the water before July 22 should confirm vessel loading dates and entry timing to claim the exemption.
• The Brazil tariff underscores the Administration's expanding Section 301 playbook — Brazil is the first country to receive a standalone country-specific Section 301 tariff in this administration's second term, setting a precedent that other large bilateral trade-deficit countries (India, Vietnam, Germany) could face separate country-specific 301 actions in addition to the global forced-labor tariff.

Official source — ustr.gov ↗

USTR Finalizes Section 301 Forced-Labor Tariffs on 60 Economies (10%–12.5%) — Section 122 Expires; Seamless Transition Effective 12:01 a.m. July 24, 2026

On July 23, 2026, USTR released its final determination in the Section 301 forced-labor investigations covering 60 economies, with new duties taking effect at 12:01 a.m. ET on July 24 — the precise moment the Section 122 global surcharge reached its statutory 150-day expiration. The final action imposes a 10% additional duty on most goods from 15 trading partners (including Canada, Mexico, the EU, UK, Japan, South Korea, Switzerland, and Taiwan — countries with at least partial forced-labor import protections), and a 12.5% additional duty on most goods from the remaining 45 economies (including China, Vietnam, India, Bangladesh, and most of the rest of the world). Together, the 60 economies subject to the new tariffs account for approximately 99.4% of all U.S. imports. CBP issued CSMS #69326983 on July 23 providing implementation guidance and a forced-labor HTS list. A narrow in-transit exception applies for vessel shipments loaded before 12:01 a.m. July 24 and entered by July 28. The final rate structure is slightly wider than what was proposed in June, covering more economies and with a two-tier rate structure instead of the originally proposed single 12.5% rate.

• Unlike Section 122 (which was capped at 15% and 150 days), Section 301 has no statutory time limit and no rate cap — these forced-labor tariffs can remain in effect indefinitely unless USTR modifies or terminates the action, marking a structurally more durable tariff regime than any used since the IEEPA tariffs were struck down in February.
• The 10% rate applies to Canada, Mexico, EU member states, the UK, Japan, South Korea, Switzerland, Taiwan, and a handful of others whose existing legal frameworks for prohibiting forced-labor imports were found to be at least partially adequate — importers of goods from these countries see no rate change from the prior Section 122 rate, but must now file new Chapter 99 HTS codes per CBP CSMS #69326983.
• The 12.5% rate applies to China, Vietnam, India, Bangladesh, Indonesia, Malaysia, Thailand, Cambodia, and approximately 45 other economies — importers who previously paid 10% under Section 122 from these countries now face a 2.5 percentage point increase, and must update entry filing protocols and landed-cost calculations immediately.
• Key exemptions mirror the Section 122 annex and include: goods subject to Section 232 tariffs; USMCA-qualifying goods (subject to ongoing USMCA uncertainty); DR-CAFTA textiles; civil aircraft, engines, and parts; pharmaceutical products and ingredients; coffee; and a range of raw materials where domestic supply would be disrupted — importers must revalidate their specific HTS codes against the USTR exemption annexes, as general descriptions are insufficient.
• China-origin goods are now subject to both existing China Section 301 tariffs (List 1–4A, 25%–100%) and the new 12.5% forced-labor Section 301 tariff as a cumulative additional duty — compliance teams must map each China-origin HTS code against both Section 301 programs and any Section 232 overlay to calculate the correct total duty rate; stacking with Section 232 is not permitted.

USTR Final Action — Federal Register Notice ↗ CBP CSMS #69326983 ↗

Three Presidential Proclamations — 50% Section 338 Tariffs on Canadian Motor Vehicles, Alcoholic Beverages & Dairy — Effective August 19, 2026

On July 20, 2026, President Trump signed three separate Presidential Proclamations invoking Section 338 of the Tariff Act of 1930 to impose a 50% additional ad valorem duty on imports of specified Canadian goods across three sectors: motor vehicles and parts, alcoholic beverages (wine and spirits), and dairy products. Each proclamation identifies a distinct discriminatory trade practice by Canada as the statutory basis. Together, the three proclamations cover approximately 554 HTSUS tariff lines — 439 in motor vehicles, 63 in alcoholic beverages, and 52 in dairy — and will apply to an estimated $20+ billion in annual Canadian imports. Section 338 has not been used to impose tariffs since the 1930s–1940s and has never previously been used in the modern era to impose import duties. The tariffs take effect on August 19, 2026 (30 days after signing, as required by the statute), providing a window for further U.S.-Canada negotiations. USMCA preference does not shield covered goods from Section 338 tariffs.

• Section 338 is a rarely invoked, legally distinct authority from IEEPA, Section 122, and Section 301 — it has no time limit, no rate cap, and does not require a national emergency declaration, making it a potentially more durable and litigation-resistant tariff tool; importers and legal teams should assess the distinct legal basis for any challenge.
• USMCA preferential treatment does not apply to goods covered by the Section 338 proclamations — importers who have relied on USMCA tariff preference for Canadian motor vehicles, wine, spirits, and dairy products must immediately recalculate their landed costs for goods entered on or after August 19, 2026.
• Exempt categories include: energy products and potash; certain fish and critical minerals; and goods already subject to Section 232 tariffs (steel, aluminum, copper, autos under Section 232, trucks, wood, semiconductors, pharmaceuticals) — importers should verify whether their specific Canadian HTS codes fall under any of the Section 232 exemptions before assuming Section 338 coverage.
• Beyond the three named sectors, the proclamations' annex also covers hockey sticks, plywood, glassware, cement, candles, Christmas decorations, plastic cups, and down jackets — importers of these Canadian goods should audit their supply chain for August 19 exposure even if their core products are not in automotive, dairy, or alcohol.
• The 30-day delay before effectiveness is a statutory feature of Section 338 — providing a window for U.S.-Canada negotiation before the tariffs take effect; however, importers should plan for full implementation by August 19 and not assume negotiations will result in suspension or modification of the tariffs.

Motor Vehicle Proclamation — whitehouse.gov ↗ USTR Statement ↗

Section 232 Pharmaceutical Proclamation — 100% Tariff on Patented Drugs & APIs Hits First Wave (Annex III Companies, July 31, 2026); Broader Industry Effective September 29

On April 2, 2026 — the one-year anniversary of Liberation Day — President Trump signed a Presidential Proclamation imposing Section 232 tariffs on patented pharmaceutical products and their active pharmaceutical ingredients (APIs) and key starting materials, following a Department of Commerce national security investigation initiated April 1, 2025. The proclamation establishes a tiered rate structure ranging from 0% to 100% depending on company agreement status, country of origin, and onshoring commitments. The first enforcement wave hits on July 31, 2026, applying the 100% tariff to 17 large pharmaceutical companies named in Annex III. For all other companies without a qualifying agreement, the 100% (or applicable tiered) rate takes effect September 29, 2026 — the next major compliance deadline. The tariffs cover patented pharmaceuticals listed in the FDA Orange Book and Purple Book, plus their APIs, across more than 130 HTSUS subheadings in Chapters 29 and 30. Generics, biosimilars, and certain specialty categories remain expressly exempt — for now. The Section 232 pharmaceutical tariffs are legally distinct from IEEPA-based tariffs struck down by the Supreme Court in February 2026 and are not subject to that ruling.

• Tiered rate framework by company/country status: 0% for 13 Annex II companies with pre-April 2 MFN pricing agreements with Commerce and HHS (valid through January 20, 2029); 10% for UK-origin patented pharma and APIs; 15% for EU, Japan, South Korea, Switzerland, and Liechtenstein (all-in, replacing MFN rate); 20% for companies with Commerce-approved onshoring plans (rising to 100% if onshoring is not completed by April 2, 2030); 100% default for all other companies and countries including India, China, Ireland, and Singapore — the dominant global API and finished-dose sourcing jurisdictions.
• Scope of coverage: Patented pharmaceutical articles subject to a valid, unexpired U.S. patent and listed in the FDA Orange Book (branded small-molecule drugs) or Purple Book (licensed biologics), plus their APIs and key starting materials, classifiable across 130+ HTSUS subheadings in Chapters 29 and 30 — importers must work from the Annex I HTSUS list directly, not from product descriptions, to determine coverage for each specific drug and API.
• What is exempt now (Annex IV): Generic pharmaceuticals and biosimilars with their ingredients; orphan drugs; nuclear medicines; plasma-derived therapies (blood products); fertility treatments; cell and gene therapies; antibody-drug conjugates; certain medical countermeasures; and animal health products — however, Commerce is required to report within one year of April 2, 2026 on whether generics should also be subjected to Section 232 tariffs, meaning the generic exclusion is explicitly temporary and subject to removal as early as April 2027.
• Onshoring incentive and MFN pricing mechanism: Companies that secure a Commerce-approved onshoring plan pay 20% (not 100%) through April 2, 2030; companies that additionally enter into an MFN pricing agreement with HHS (committing to most-favored-nation drug pricing for U.S. government purchasers) qualify for 0% through January 20, 2029 — importers should immediately assess eligibility for and the commercial trade-offs of these onshoring and pricing pathways before September 29.
• Immediate compliance actions before September 29: (1) Confirm each imported drug/API's coverage status against Annex I and exemption status against Annex IV; (2) Determine company Annex classification (II, III, or other); (3) Confirm country-of-origin rate (UK 10%, EU/Japan/Korea/Switzerland 15%, others 100%); (4) Evaluate onshoring plan and MFN agreement eligibility with Commerce and HHS; (5) Admit any covered FTZ inventory under Privileged Foreign status per 19 CFR § 146.41; (6) Note that drawback is available for duties paid under this proclamation.

Official source — whitehouse.gov ↗ White House Fact Sheet ↗

Mid-Year HTSUS Updates Take Effect — New Chapter 99 Codes; Discontinued Subheadings Create ACE Filing Risk

The Committee for the Statistical Annotation of Tariff Schedules (the "484(f) Committee") released its mid-year HTSUS updates, effective July 2026. In addition to routine statistical subheading changes, the updates incorporate new Chapter 99 tariff subheadings for the Section 301 forced-labor tariffs (10% and 12.5%) and reflect other proclamation-driven modifications from the first half of 2026. Submitting outdated or discontinued HTS subheadings in ACE entry filings will result in transmission errors and rejected entries, potentially causing cargo holds and delays at port.

• All customs brokers, importers, and freight software operators must immediately update their HTS classification databases to reflect the July 2026 mid-year HTSUS revisions — failure to update will produce ACE system errors and entry rejection, creating clearance delays and potential cargo holds at U.S. ports.
• New Chapter 99 subheadings for Section 301 forced-labor tariffs (distinct from Section 122 Chapter 99 codes) must be used for all entries of covered goods from the 60 economies effective July 24 — filers who continue using the old Section 122 Chapter 99 codes will receive ACE transmission errors and must refile with the correct tariff provision.
• Customs brokers should audit all tariff rate databases, automated entry preparation systems, and ACE filing profiles against the updated HTSUS to identify discontinued or modified subheadings — systematic auditing is especially critical for high-volume filers processing hundreds of entries per day.
• CBP CSMS guidance should be monitored continuously throughout the July–August transition period for technical implementation updates, error code explanations, and filing corrections — CSMS messages are the primary channel through which CBP communicates HTS programming changes in ACE.
• The mid-year HTSUS update adds a second annual layer of classification complexity on top of the January 1 annual update — compliance teams that only conduct annual tariff database reviews should institute a mid-year review cycle to capture these changes in time for implementation.

CBP CSMS updates — cbp.gov ↗

OFAC Revokes Iran General License X — Abruptly Reinstates Full Iran Oil Sanctions; GL X1 10-Day Wind-Down Through July 17

On July 7, 2026, OFAC abruptly revoked Iran-related General License X (GL X) — issued on June 21, 2026 as part of a U.S.-Iran Memorandum of Understanding (MOU) signed June 17 — which had authorized transactions involving the production, delivery, and sale of Iranian crude oil, petrochemical products, and petroleum products through August 21, 2026. OFAC replaced GL X with Iran-related General License X1 (GL X1), which authorized only a narrow 10-day wind-down period through 12:01 a.m. ET on July 17, 2026. Administration officials cited Iran's attacks on commercial vessels in the Strait of Hormuz and alleged violations of the ceasefire and MOU as the grounds for revocation. All Iranian oil and petroleum sanctions are now fully reinstated, and no new transactions were permitted from July 7 onward.

• Full Iran oil and petroleum sanctions are reinstated as of July 7, 2026 — all U.S. persons and entities must immediately confirm that no ongoing or pending transactions involving Iranian crude oil, petrochemicals, or petroleum products remain active; any residual positions must have been fully unwound before the GL X1 deadline of July 17.
• Payments to blocked Iranian persons during the GL X1 wind-down window must be directed into blocked, interest-bearing accounts in the United States — direct U.S. dollar payments to Iranian counterparties are no longer authorized, reversing GL X's payment authorization; financial institutions should review all open payment flows from June 21–July 6 transactions for compliance.
• The snap-back of GL X within just 16 days of issuance is a critical compliance lesson: temporary OFAC authorizations in high-risk jurisdictions may be revoked with extremely short notice — companies operating under humanitarian or trade exceptions in Iran, Russia, Venezuela, or Cuba should build contractual wind-down provisions and contingency protocols into all sanctioned-jurisdiction transactions.
• Maritime industry and vessel operators who chartered or loaded Iranian petroleum cargoes in reliance on GL X must immediately assess whether those cargoes have been fully delivered and settled before the July 17 wind-down deadline — any cargo or payment outside the wind-down window requires specific OFAC authorization or faces potential penalties under multiple Iran sanctions programs.
• OFAC's "maximum pressure" posture on Iran is fully restored — all prior Iran SDN designations, blocked vessels, and sanctions programs (CISADA, TRA, IFCA, CAATSA, IEEPA Iran EOs) remain in full effect; companies must re-update their Iran sanctions screening protocols to remove any GL X-based exceptions they had programmed into their compliance systems.

Official source — ofac.treasury.gov ↗

OFAC July SDN Designations — Iran, Counter-Terrorism, Cuba, Belarus, Russia Amended GL & Venezuela FAQ Updates

OFAC issued a series of SDN list updates throughout July 2026 across multiple sanctions programs. Key July actions included: Iran-related designations on July 14 and July 29; Counter Terrorism and Cuba designations on July 13 and July 24 (including Cuba-related General License issuances); a Belarus-related designation removal on July 24; issuance of an amended Russia-related General License and updated Russia FAQ on July 24; an amended Venezuela-related FAQ update; and Counter-Narcotics designations on July 24. Collectively, these updates reflect OFAC's active enforcement posture across Iran, Cuba, Russia, and Counter-Terrorism programs in July 2026.
• Iran-related designations continued through July 29 — following the revocation of GL X, OFAC has resumed aggressive designation activity against Iran's shadow fleet, financial networks, and affiliated entities; all maritime, financial, and energy industry participants should run SDN screening updates against each OFAC designation batch immediately upon publication.
• Russia-related General License amended July 24 — the amended Russia GL modifies the scope of authorized wind-down or maintenance transactions; companies with Russia-related energy, financial, or services exposure should review the amended license immediately for changes that affect their current compliance program.
• Cuba designations and General License issuances on July 24 — following the January 2026 and May 2026 Cuba EOs, OFAC continues active designation and GL activity in the Cuba program; companies with Cuba-related transactions should monitor OFAC's Cuba FAQ and GL publications on a weekly basis for evolving authorizations.
• The Belarus-related designation removal on July 24 signals that individual removal petitions remain active — companies or individuals previously on the SDN list for Belarus-related activity should confirm whether the removal applies to their counterparties and update screening databases accordingly.
• OFAC's extended 10-year record-retention requirement (announced in May 2026) applies to all of these July designation and GL actions — compliance teams should ensure their sanctions recordkeeping systems, transaction logs, and screening documentation are now configured for a full decade of retention consistent with IEEPA/TWEA statute of limitations periods.

Official source — ofac.treasury.gov ↗

CAPE IEEPA Refunds Surpass $86.3B Paid; CIT Orders CAPE Phase 3 Roadmap for Finally Liquidated Entries; DOJ/DHS Trade Fraud Task Force Enforcement Guide Released

As of July 10, 2026, CBP reported to the Court of International Trade that $86.3 billion in IEEPA tariff refunds had been paid to importers, with $121.75 billion in total claims accepted for processing through the CAPE portal. On July 15, CIT Judge Eaton issued an order mapping out the CAPE Phase 3 framework for finally liquidated entries — providing that the Court will issue case-specific reliquidation orders across approximately 3,700 individual IEEPA plaintiff cases, rather than requiring importers to individually initiate new suits. Separately, the DOJ and DHS Trade Fraud Task Force released a formal enforcement guide in July detailing their strategy for investigating and prosecuting tariff evasion, export restriction violations, trade-based money laundering, and smuggling — reflecting a significant escalation in the criminal enforcement posture for trade compliance violations.

• CAPE Phase 3 (expected to launch July/August 2026) will handle finally liquidated IEEPA entries through case-specific CIT reliquidation orders — importers who are not currently plaintiffs in CIT IEEPA litigation should consult trade counsel immediately to evaluate whether intervening in the approximately 3,700 pending cases is feasible and necessary to obtain refunds on their finally liquidated entries.
• The $86.3B paid / $121.75B accepted figures confirm that CAPE Phase 1 and Phase 2 are processing refunds at scale — importers with unliquidated or reconciliation-flagged entries who have not yet filed CAPE Declarations should do so immediately, as the CAPE submission window is open and refunds are being issued.
• The DOJ/DHS Trade Fraud Task Force guide specifically targets tariff evasion, classification fraud, country-of-origin misrepresentation, and trade-based money laundering — importers with any aggressive classification positions, origin re-routing practices, or informal duty-mitigation strategies should conduct an immediate compliance self-audit in light of the heightened criminal enforcement posture.
• Judge Eaton scheduled a closed settlement conference for August 5, 2026, and ordered a CAPE progress report by August 4 — these CIT milestones may produce new procedural orders affecting the timeline and mechanics of CAPE Phase 3 implementation; importers' trade counsel should monitor the docket closely.
• A reported 30% discrepancy rate in CAPE submissions (per a third-party analysis of 300,000+ IEEPA entry line items) underscores the risk of filing errors in the CAPE portal — importers should audit their CAPE Declarations for accuracy, completeness, and correct entry type classification before submission to avoid rejection or clawback.

CBP CAPE portal — cbp.gov ↗