Breaking Trade News: CAPE Phase II Launches, USMCA Not Renewed

Here is a recap of the latest customs and international trade news: 

Administration: 

  • President Trump signed a Proclamation temporarily removing duties on phosphate fertilizer from Morocco. The duties will be suspended for eight months. 

Customs and Border Protection (CBP)      

  • On June 29, 2026, CBP launched CAPE Phase II for IEEPA refunds. This phase covers enhanced processing for reconciliation-flagged entries, making the large majority of IEEPA duties eligible for refund.  
  • CBP issued an interim final rule (IFR) that codifies the suspension of de minimis for international mail shipments and establishes a new postal informal entry process for certain goods entering by mail. The rule takes effect July 24, 2026. 
  • CBP issued a Notice of Determination as to Evasion in an EAPA case, finding that a major solar-module importer evaded antidumping AD/CVD orders on crystalline silicon photovoltaic cells.  
  • CBP published a Federal Register Notice increasing interest rates for underpayments (7% for both corporations and non-corporations) and overpayments (7% for non-corporations and 6% for corporations). 
  • CBP seized over $120,000 in unmanifested kitchen […]
By |2026-07-03T12:48:18-04:00July 3, 2026|news, Snapshot|0 Comments

CBP CAPE Phase 2 Update: 4.36 Million Entries Fail, Finally-Liquidated Importers Left Out

KEY TAKEAWAYS 

  • CBP has certified roughly $71.06 billion in IEEPA refunds and cleared 18.1 million entries through CAPE — but the headline number hides who is being left out. 
  • 4.36 million entries failed CAPE’s entry-level checks. If your entry is finally liquidated beyond CBP’s 90-day reliquidation window, CAPE will not refund it, and the government is fighting to keep it that way on appeal. 
  • Phase 2 (reconciliation-flagged entries) went live June 29, 2026. Finally, liquidated entries remain in dispute at the Federal Circuit (No. 26-1898). 
  • The government’s stated position: no refund on finally-liquidated entries unless the importer filed suit at the CIT. Filing preserves your standing while the appeal plays out; it is not a guarantee of recovery. 
  • Three fixable failure reasons: importer/filer mismatch, entry-number errors, and CSV template misalignment are costing importers refunds they are otherwise entitled to. 

A $71 Billion Headline That Hides Who Isn’t Getting Paid 

On July 1, 2026, CBP filed its latest status declaration in Euro-Notions Florida, Inc. v. United States (CIT No. 25-00595) — the lead case now governing how IEEPA duty refunds are administered through CBP’s Consolidated Administration and Processing of Entries (CAPE) platform. The numbers are large. As of June 29, 2026, CBP reported that CAPE declarations had cleared file validation covering 18.1 million entries, that 15.92 […]

New AD/CVD Case Filed Against Glyphosate from China 

A new antidumping and countervailing duty action has been filed against Glyphosate from China. The allegation is that imports from China are being dumped and unfairly subsidized.  

Full list of importers here.
Full list of exporters here. 

Background on AD/CVD Investigations 

Antidumping duty (“AD”) and countervailing duty (“CVD”) investigations are brought jointly by the U.S. International Trade Commission (“USITC”) and the U.S. Department of Commerce (“Commerce”). AD investigations are triggered when a domestic industry alleges that it has been injured by competing imports of particular goods from specific countries being sold at less than a fair value. Meanwhile, CVD investigations are triggered when a domestic industry alleges that it has been injured by competing imports that are being unfairly subsidized by their governments. The domestic industry initiating the investigation is known as the petitioner, while the foreign industry participating in the investigation is known as the respondent. 

Scope of the Investigation 

The merchandise covered by these investigations is glyphosate (N(phosphonomethyl) glycine) in all forms, concentrations, and formulations.  

The products subject to the investigation are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the following subheadings: 2931.49.0020, 3808.93.5020, and 2931.49.0080.  

Full scope here.

Next Steps 

The Commerce Department will determine whether to initiate the investigations within 20 days. The […]

By |2026-07-02T07:40:26-04:00July 2, 2026|AD/CVD, China, Import|0 Comments

The U.S. Declined to Renew USMCA – What Importers Must Do Now

USMCA remains in force, but annual reviews create a new layer of origin compliance risk that importers can’t afford to ignore. 

KEY TAKEAWAYS 

  • USMCA did not end. On July 1, 2026, the U.S. declined to renew the agreement for a fresh 16-year term, moving it into annual reviews. The pact stays in force, potentially through 2036, unless a country formally exits with six months’ notice. 
  • Nothing changes at the port tomorrow. USMCA-qualifying goods still enter duty-free. Your certifications, rules-of-origin claims, and preference elections remain valid today. 
  • The real risk is enforcement, not policy. A decade of open renegotiation puts rules of origin, especially auto content and regional-value-content thresholds, into permanent play. Origin claims made under old assumptions become audit and penalty exposure. 
  • Act now on documentation, not headlines. Importers should stress-test USMCA certifications, tighten origin recordkeeping, and model exposure to Section 232 auto/steel/aluminum tariffs that already sit on top of the agreement. 

The Challenge: Compliance & Enforcement 

The news landed fast and loud: the United States declined to renew the U.S.-Mexico-Canada Agreement (USMCA) on July 1, 2026. U.S. Trade Representative Jamieson Greer confirmed the U.S. would forgo a fresh 16-year term in favor of annual reviews of the pact. Some coverage framed this as the end of North American free trade. It is not. 

Here is the […]

EAPA Update: CBP Finds Evasion Despite Full Cooperation 

A recent EAPA evasion finding against a solar importer reveals how a single country-of-origin misclassification can trigger steep consequences, even when the importer fully cooperates with CBP.

KEY TAKEAWAYS 

  • CBP issued a Notice of Determination as to Evasion in an EAPA case, finding that a major solar-module importer evaded antidumping AD/CVD orders on crystalline silicon photovoltaic cells. 
  • Report the cell, not the module.  For solar modules assembled in a third country, the AD/CVD-relevant country of origin is where the cell was made, not where the module was assembled. Declaring the assembly country can be a material, false statement under EAPA. 
  • Cooperation does not erase the duty.  The company fully cooperated, but CBP found evasion anyway. 
  • The exposure is severe.  Cash-deposit rates reached up to 271.28% (Vietnam AD) and 238.95% (China-wide AD).
  • If you assemble abroad and import into the U.S., audit your country-of-origin declarations now — before an allegation does it for you. 

The Evasion Case 

On June 23, 2026, U.S. Customs and Border Protection (CBP) issued a Notice of Determination as to Evasion in EAPA Consolidated Case No. 8163, finding substantial evidence that a major solar-module importer evaded antidumping (AD) and countervailing (CVD) duty orders on crystalline silicon photovoltaic cells. The finding reached the Vietnam Circumvention Determination and the Malaysia and Vietnam AD/CVD Orders. 

The […]

Go to Top