The 25% duties will apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on July 22, 2026. An in-transit exception applies to goods that were loaded and in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. Eastern Time on July 22, 2026, and are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. Eastern Time on July 29, 2026.

Various exceptions further apply to certain specified HTSUS provisions, as well as information materials and articles of aluminum, steel, or copper, and derivative aluminum or steel articles.

Additionally, the Section 301 duties do not apply to goods for which entry is properly claimed under a provision of Chapter 98. However, for goods entered under subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duty applies to the value of repairs, alterations, or processing performed, as described in the applicable subheading. For goods entered under subheading 9802.00.80, the additional duty applies to the value of the article assembled abroad, less the cost or value of U.S. products incorporated into the article, as described in that subheading.

For further information, please contact us.

CBP confirmed that all filing and processing requirements from the first phase of CAPE remain in effect; notably, acceptance remains limited to unliquidated entries and entries within 80 days of liquidation.

Once an entry flagged for reconciliation is accepted on a CAPE declaration, the corresponding reconciliation entry may then be filed.

However, CBP cautioned that if the reconciliation filing deadline is approaching (e.g. where fewer than 30 days remain), priority should be given to filing the reconciliation entry to avoid missing the deadline.

CBP also noted that while entries flagged for reconciliation for which a reconciliation entry is already on file are not yet covered by this functionality, those entries are expected to be addressed in a future phase of CAPE development.

Please contact us with any additional questions.

In this regard, USTR determined that additional tariffs were warranted in response to the “acts, policies, and practices” of countries that have not effectively imposed and enforced a prohibition on the importation of goods produced with forced labor. USTR found the actions of those countries is unreasonable, burdens or restricts U.S. commerce, and are thus actionable under Section 301(b) of the Trade Act.

As a result, the USTR has proposed the following additional tariffs.

• A 10% tariff on products from the following that either currently impose (but have failed to effectively enforce), or have undertaken commitments to impose, a prohibition on the importation of forced labor goods: the EU, the UK, Argentina, Bangladesh, Canada, Cambodia, Ecuador, El Salvador, Guatemala, Indonesia, Malaysia, Mexico, Pakistan and Taiwan;
• A 12.5% tariff on products from the remaining countries under investigation, including Brazil, Chile, Costa Rica, Egypt, India, Thailand, and Vietnam. For a complete list of affected countries, please contact us.

It is expected, however, that these tariffs will not be apply to either USMCA-qualifying importations or on apparel eligible for entry under DR- CAFTA.

Comments this proposal are due July 6, 2026, and USTR will hold hearings about the proposed actions in these investigations on July 7, 2026. Those interested in testifying must advice USTR by June 22, 2026.

We strongly recommend that clients who will be impacted by these tariffs consider filing comments. We are available to assist with this process as needed.

For further information, please contact Gail Cumins at gcumins@spcblaw.com, Alli Baron at abaron@spcblaw.com or call us at 212-425-0055.

Accordingly, companies that have not yet joined the litigation, but have potential refunds associated with entries that liquidated more than 90 days ago, should consider filing their own protective pleading with the CIT as soon as possible.

In this regard, given the Government’s position, it is increasingly likely that a company-specific court order will be required to recover refunds on finally liquidated entries.

Please contact us if you are interested in filing. We will continue to keep you apprised of further developments.

The Court, unusually, has also instructed Rodney S. Scott, Commissioner of Customs, to appear in person on June 9, 2026, to discuss the agency’s plans to comply with the Court’s order to reliquidate all applicable entries without IEEPA duties.

Customs has also been instructed to submit an updated CAPE progress report by June 10, 2026.

Collectively, these developments suggest that the CIT is considering the possibility of ordering the broad refund of all IEEPA duties, including those associated with entries presently excluded from CAPE phase 1.

However, it is also possible the government will respond to these instructions by filing an appeal to the CIT’s original refund order. Any appeal would need to be filed by June 6, 2026.

With so many questions remaining, it is imperative that you continue to take the necessary steps to protect your company’s IEEPA refunds.

Please contact us to discuss the best course of action for your company at this time.