New requirements for importers of record, foreign IOR restrictions, and increased enforcement actions expected 

On June 3, President Trump issued an Executive Order, “Strengthening Customs Enforcement,” signaling a broad tightening of U.S. Customs enforcement that will impact all importers and parties involved in import transactions.

The Order emphasizes increased importer accountability, enhanced vetting, expanded disclosure requirements, and stronger enforcement, particularly affecting importers of record (IORs), with heightened implications for foreign IORs.

Although the changes are not immediate, the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) are expected to implement them through the rulemaking process, including the issuance of future Federal Register notices seeking public comment.

Key Takeaways

• Heightened enforcement expected across CBP operations

• Increased bonding and proof of tangible domestic assets in the U.S. for IORs

• Expanded data reporting and supply chain disclosure obligations

• Stricter rules and limitations on foreign IORs

• Higher penalties and reduced mitigation flexibility

Importer of Record (IOR) Requirements

Within 180 days, CBP will revise IOR requirements to include:

• Minimum U.S. assets and/or increased bonding thresholds

• Expanded disclosures (ownership, affiliations, assets, and import volumes)

• A new “good standing” requirement; noncompliant IORs may be barred from importing

Foreign IOR Restrictions

• Foreign IORs will be prohibited from filing informal entries

• Formal entries will be permitted only if additional requirements are met, including:

  • Sufficient bonding is provided to protect revenue

  • Compliance standards are met

  • Participation in CTPAT (if eligible), or use of a CTPAT-validated broker

  • The Order also introduces a substance-over-form test to prevent the use of shell companies or artificial structures to qualify as a U.S. IOR

Enhanced Vetting and Oversight

CBP will expand oversight of the importing community by:

• Updating the IOR registry (removing inactive IORs and verifying compliance)

• Creating risk-based tiers based on compliance history

• Expand vetting to IORs, their affiliates, brokers, forwarders, and bonded operators

New Reporting Requirements

The Order directs CBP to implement expanded import reporting requirements, including:

• Certifying compliance with critical supply chain requirements like the Countering America’s Adversaries through Sanctions Act Compliance certifications

• Foreign tax and business identifiers

• Detailed supply chain and product information

• Within 90 days, importers may also be required to submit export-related documentation filed with foreign governments

Increased Enforcement and Penalties

CBP is directed to expand enforcement activities, including:

• Increased audits and investigations

• More aggressive bond enforcement and liquidated damages claims and penalties

• Restrictions on in-bond shipments

Priority Enforcement Areas: forced labor, undervaluation, misclassification, transshipment, and AD/CVD evasion (EAPA).

Penalty Changes

Within 90 days, CBP will revise mitigation policies to include:

• A minimum penalty floor of at least 50% of assessed penalties

• Minimum liquidated damages thresholds

• No mitigation for repeat offenders

Implementation Timeline for CBP

• 45 days: Legislative recommendations for additional Customs enforcement legislation

• 90 days: New reporting, penalty, and enforcement measures

• Within 180 days: New IOR rules, registry updates, and vetting requirements

• Within 1 year: Implementation Report to the President

   

This Executive Order effectively lays the groundwork for a comprehensive modernization of U.S. Customs enforcement.

Importers, particularly those using foreign IOR structures, should anticipate increased scrutiny, higher compliance costs, and more extensive reporting obligations. Begin evaluating current import practices in advance of forthcoming rulemaking.

We will continue to monitor developments and provide updates. For questions, please contact your Deringer representative or Customs Attorney. 

 Seeking Public Comment on Proposed Additional Tariffs 

The Office of the U.S. Trade Representative (USTR) has published a Federal Register notice seeking public comment on proposed additional tariffs under Section 301 related to forced labor concerns. The proposed action follows USTR’s investigation into 60 countries, which found that many trading partners have failed to adequately prohibit or enforce restrictions on imports of goods produced with forced labor.

As a result of these findings, USTR has proposed additional tariffs ranging from 10% to 12.5% on imports from the affected countries. These measures are not yet final and are subject to change based on public feedback.

Proposed Tariff Structure

• 10% Tariff would apply to countries that:

  • Currently enforce forced labor import prohibitions (e.g., Canada, EU, Mexico, Indonesia, Pakistan)

  • Have committed to such prohibitions under trade agreements (e.g., Bangladesh, Cambodia, Malaysia, Taiwan)

  • Maintain partial regimes restricting certain forced labor goods (e.g., United Kingdom)

• 12.5% Tariff would apply to the remaining 44 countries that USTR determined have failed to adequately implement or enforce such prohibitions.

These duties would apply broadly to all products from the affected countries, with limited exclusions outlined in the forthcoming Federal Register notice.

Additional Considerations

• Tariff stacking: These new duties would be imposed on top of existing tariffs, including most favored nation (MFN) rates, current Section 301 tariffs on China, and any other applicable trade actions.

• Textile mechanism: USTR also proposed a potential quota-based mechanism allowing a limited volume of apparel and textiles from certain countries to enter at a reduced tariff rate.

Timeline

• June 22: Deadline to request participation in public hearings

• July 6: Written comments due

• July 7: Public hearings scheduled

This timeline could allow implementation of new tariffs before the expiration of current Section 122 duties on July 24. USTR is also expected to release findings from a separate Section 301 investigation into excess manufacturing capacity involving 16 economies, including China, the EU, Vietnam, India, and Mexico.

We will continue to monitor this closely and provide updates as more information becomes available. If you have questions about how this may affect your imports, please reach out to your Deringer representative or consult your Customs Attorney.

Update on Refunds, Enforcement Trends, and What to Do Next

On June 1, the Trump Administration released a proclamation announcing adjustments to Section 232 tariffs on certain metal-based products, effective 12:01 a.m. ET on June 8, 2026.

The administration is lowering 232 tariffs on agricultural equipment, Industrial Equipment, and HVAC. Tariffs on agricultural machinery, such as combines and harvesters, as well as residential HVAC systems, will drop from 25% to 15% from certain countries of origin. The proclamation also introduces a new incentive tied to U.S. sourcing. As stated by the White House, it “encourages foreign companies to use more U.S. steel and aluminum” by allowing them to qualify for a reduced 10% duty rate if their equipment contains at least 85% down from 95% U.S. melted and poured steel or smelted and cast aluminum or U.S. copper by weight. These tariff changes are temporary and will remain in effect through December 31, 2027.

On the other hand, the proclamation also adds steel racks under subheadings 9403.20.0075, 9403.20.0082, and 9403.99.9040 and aluminum lithographic plates under subheading 3701.30.00 to the list of goods subject to 25% Section 232 tariffs on steel and aluminum derivatives, respectively. Those changes also take effect June 8.

Eligibility for a reduced or modified tariff rate depends on whether the product is specifically listed in the annexes to the proclamation, linked below.

Key Details

• Effective June 8, 2026, HTSUS provisions and product lists under prior proclamations will be modified as outlined in Annexes I‑A, I‑B, I‑C, II, III, and IV to the proclamation.

  • Importers must review the annexes to determine whether their specific products and HTS numbers are affected.

• A 25% tariff remains at the baseline rate unless a lower rate applies.

• For certain countries (including the EU, UK, Japan, and others), imports of products listed in Annex I-C:

  • If the chapter 1-97 HTS duty rate is below 15%, total duties will equal 15%.

  • If the chapter 1-97 duty rate is 15% or higher, no additional Section 232 tariff applies.

• A 10% tariff applies where steel or aluminum content is entirely sourced and processed in the U.S. under the proclamation’s rules.

• For imports from Canada and Mexico under USMCA of products listed in Annex I-C:

  • The 25% tariff applies only to non-U.S. content.

  • Total effective duty cannot be less than 15%.

  • CBP will issue guidance on calculating U.S. content.

  • Penalties may apply for misrepresentation.

• If multiple tariff rates apply, the lowest applicable rate will be used.

• A product is considered U.S.-sourced for tariff purposes if at least 85% of its metal content by weight is produced in the U.S.

• Beginning January 1, 2028, tariff rates will revert to those established under prior proclamations.

What This Means for You

• These changes may impact your imports depending on product type, country of origin, trade agreement eligibility, and the percentage of U.S. steel or aluminum content.

• Additional guidance from CBP is expected, particularly regarding content calculations and enforcement.

We will continue to monitor this closely and provide updates as more information becomes available. If you have questions about how this may affect your imports, please reach out to your Deringer representative or consult your Customs Attorney.

What importers need to know about CBP refund timing, court actions, and next steps.

We wanted to provide a quick update on the ongoing court case related to IEEPA tariffs and U.S. Customs (CBP) refund processing, based on the government’s May 29^th filing. You can review the full filing here: c866ddd9-88c4-4f84-a548-04e48aa0b288.pdf

Key Takeaways

1. Tariff Refunds Are Underway (Partially)

• CBP has already begun refunding ~$85 billion in tariffs on entries that are still unliquidated (not final).

• Additional refunds are expected in the coming weeks as more claims are filed for unliquidated entries or those w/in 80 days of having been liquidated by CBP.

2. Final (Liquidated) Entries 

Entries without specific court cases filed in the Court of International Trade (CIT): 

• Depending on the outcome of this recent action, filing in the CIT may be the only way to secure refunds for finally liquidated entries, but this is not yet decided.

3. Timing & System Limitations 

• CBP has confirmed that full, immediate compliance is not possible for finally liquidated entries.

• Refunds will be processed through a phased rollout of system enhancements.

What This Means for You

• Refund timing depends on:

  • Whether entries are finally liquidated or unliquidated

  • Whether an individual court case has been filed

  • CBP's ongoing system updates

We will continue to monitor this closely and keep you updated. If you have questions about how this impacts your entries, please reach out to your Deringer representative or consult your Customs Attorney. 

Before filing a CAPE declaration, confirm these two critical items:

1. Are there any PENDING CORRECTIONS for the entries contained on the CAPE Declaration, including Post Summary Corrections (PSCs), Prior Disclosure, or Protests filed on issues other than IEEPA refund?

2. Are you set up properly to receive your electronic refund directly?

Contact Deringer before filing to verify key details.

Post Entry Corrections/ Entry Errors

Before filing a CAPE declaration for IEEPA refunds, check with Deringer to confirm there are no pending PSCs, prior disclosures, or protests affecting the entries.

Any entry errors must be corrected before submission. Once a CAPE declaration is filed, PSCs for included entries cannot be filed.

By submitting a CAPE declaration, the importer certifies that the filing is accurate, including entry type, classification, valuation, and country of origin.

False statements or omissions to CBP may result in civil liability or criminal penalties.

Review all entries carefully before filing to avoid submitting a false declaration.

Receiving Refunds

Refunds may be rejected if the importer is not properly set up to receive electronic refunds.

To receive electronic refunds directly

• The IOR must have an ACE account.

• The IOR must enroll in ACH refunds in the ACE Portal using U.S. bank account information.

  • ACH refunds are separate from ACH debit or credit for duty payments and must be set up separately.

• The IOR must have a U.S. bank account.

  • A foreign account may qualify if it is tied to a U.S. branch or affiliate, is in U.S. dollars, and has an ABA routing number.

  • Importers using foreign accounts should confirm setup requirements with their bank.

The IOR must ensure its Customs broker is not listed as the 4811 Notify Party if the IOR wants to receive the refund directly.

Note:

• If ACH banking information is not provided to CBP, the refund will be rejected.

• If the IOR is set up for electronic refunds but the broker is listed as the 4811 Notify Party, the broker will receive the refund instead of the IOR.

If the importer wants the broker to receive refunds:

• Discuss the process with your broker.

• Confirm the broker is set up correctly to receive electronic refunds.

• Ensure the broker is listed as the 4811 party for refunds.

• Agree on any fees and how refunds will be returned to you.

A recent ruling by the U.S. Court of International Trade has introduced additional uncertainty surrounding certain tariff authorities currently impacting importers.

On Thursday, May 7, the court ruled that the administration exceeded its authority under Section 122 of the Trade Act of 1974 in implementing the broad 10% global tariff program. The ruling is currently limited in scope to only those named in suit brought before the court. The Trump Administration appealed the ruling on Friday, May 8.

At this time, importers should continue to follow all existing Customs entry, payment, and compliance requirements unless formal guidance or regulatory changes are issued by U.S. Customs and Border Protection (CBP).

What Importers Should Know

-The ruling does not immediately eliminate tariff obligations across the board

-Appeals and additional legal proceedings are underway

-Future tariff actions may continue under other trade authorities, including Section 301 and Section 232

-Importers may experience continued volatility and uncertainty related to tariff strategy and trade planning

Potential Business Impacts
This development may prompt companies to revisit:

-Duty mitigation strategies

-Tariff engineering opportunities

-Duty drawback eligibility

-Supply chain diversification

-Country of origin analysis

-Long-term sourcing decisions

As the situation evolves, Deringer will continue monitoring developments and providing updates relevant to the importing community.

If you have questions regarding tariff exposure, trade strategy, or potential operational impacts, please contact your Deringer representative.

New ACE Portal process consolidates duty refund submissions

U.S. Customs and Border Protection (CBP) has announced the launch of Phase 1 of the Consolidated Administration and Processing of Entries (CAPE) tool in the ACE Secure Data Portal, effective April 20, 2026. The tool allows CBP to consolidate IEEPA refund processing, including interest, rather than issuing refunds on an entry by entry basis.

Key points for importers and brokers:

• Phase 1 applies to certain unliquidated entries and entries that have liquidated in the past 80 days

• Refund requests will be submitted through a CAPE Declaration in the ACE Portal

• Proper ACE Portal access and ACH refund banking information are required

• CBP will remove applicable IEEPA HTS numbers, recalculate duties, and liquidate or reliquidate accordingly

• Refunds will be consolidated by Importer of Record (IOR) or designated refund recipient, and the liquidation date

CBP will continue to expand CAPE functionality in future phases and will issue additional guidance through CSMS as enhancements are deployed.

If you have questions about how this change may impact your IEEPA refund filings or ACE setup, please contact your Deringer representative.

Designed to Assist Labor-Related Risks in Global Supply Chains

The U.S. Department of Labor has launched a new set of voluntary self assessment tools designed to help businesses identify and reduce labor related risks in global supply chains.

The tools support risk assessment efforts tied to forced labor enforcement and unfair foreign labor practices, offering resources such as import risk indicators, labor violation data by country, and deeper supply chain traceability beyond first tier suppliers. While optional, the tools are intended to help companies proactively assess exposure and strengthen compliance as global labor enforcement continues to expand.

The self-assessment tools launched today are:

LaborShield: A mobile app that provides information on serious labor violations across more than 145 countries.

ImportWatch: A resource that combines the department’s labor abuse research with U.S. import data from the U.S. Census Bureau to produce a red-flag list of all high-risk goods for U.S. importers.

SourcingStrong: A tool to help U.S. businesses spot and manage labor-related risks in their supply chains.

Supply Chain Traceability Portal: A platform designed to provide visibility across supply chains and beyond the first tier to expose where exploitative labor hides.

 Summary of Changes (Effective July 31, 2026 for some companies; September 29, 2026 for others) 

Beginning on the applicable effective date, a baseline 100% ad valorem tariff will be imposed on imported patented pharmaceuticals, and associated pharmaceutical ingredients (including active pharmaceutical ingredients and key starting materials).

Lower tariff rates will apply to certain countries with U.S. trade agreements, and additional reduced or zero‑rate options are available for companies that commit to reshoring and, in some cases, MFN pricing.

Country‑Specific Rates (No Reshoring Requirement):

• 15% tariff: European Union, Japan, South Korea, Switzerland, and Liechtenstein

• 10% tariff: United Kingdom

A tiered, incentive‑based structure allows reduced or zero tariffs for companies that commit to onshoring U.S. production, and/or enter into Most‑Favored‑Nation (MFN) drug pricing agreements with the Department of Health and Human Services (HHS).

Reshoring Incentives:

• Companies that agree to reshore production will receive a temporary 20% tariff rate while U.S. facilities are under construction, increasing to 100% on April 2, 2030.

• Companies that reshore and agree to MFN (Most Favored Nation) drug pricing will qualify for a 0% tariff during construction.

Current Status:

• 17 pharmaceutical companies have committed to reshoring and MFN pricing

• 13 companies have executed agreements

• 4 companies remain in active negotiations

Generic pharmaceuticals, biosimilars, and associated ingredients will not be subject to tariffs at this time and will be reassessed in one year.

Orphan drugs, drugs for animal health, and certain other specialty pharmaceutical products will be exempt, if they are from trade deal countries or meet an urgent public health need.

You can read the full proclamation here: Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients into the United States – The White House

Effective Monday, April 6, 2026

President Trump has issued a new Proclamation modifying the tariffs imposed under Section 232 on Steel, Aluminum, and Copper.

The Proclamation defines the way that tariffs are assessed, ensuring that they reflect the full value of imported steel, aluminum, and copper products.

The new Section 232 tariff rates for steel, aluminum, and copper will go into effect on Monday, April 6, 2026. Details on the affected metals and their corresponding tariff rates are provided below:

Metals:

• 50% tariff on the full value of certain steel, aluminum, copper goods classified in Chapter 72, 73, 74, and 76

• 25% tariff on the full value of certain steel, aluminum and copper derivatives listed in Annex I of the proclamation (no more splitting lines based on metal content value)

• A temporary 15% tariff, inclusive of Most Favored Nation (MFN) rate-based duty, on certain metal-intensive industrial equipment and electrical grid equipment through the end of 2027

• Removal of many steel/aluminum derivative items from lists of goods subject to tariffs. The inclusion process is also ended, but additional products may be added at the administration’s discretion, listed in Annex II (pg. 29) of the proclamation

• De minimis exemption for goods outside of Chapters 72, 73, 74 and 76 if the weight of the subject metal is less than 15% of the imported article. If the article is on more than one metal list, use the aggregate weight of the listed metals.

• 0% duty on motorcycle parts in Chapters 84, 85 or 87 when imported exclusively for use in the manufacturing of motorcycles

• If an item is listed as an article or derivative of more than one metal, it will be subject to only one duty assessment for 232 steel/aluminum/copper, even if it contains more than one metal.

• For derivative products manufactured abroad with 95% or more US steel/aluminum/copper the rate is now 10% instead of 0%. For some goods it is 10% additional, others 10% inclusive of MFN.

• Goods from the U.K. that would otherwise be subject to the 50% rate are subject to a 25% tariff rate, and goods subject to the 25% rate for derivatives will be subject to a 15% rate.

• Manufacturing drawback under 19 U.S.C. 1313(a) and (b) will be allowed for goods subject to the Section 232 tariffs on steel, aluminum and copper. But that applies only to goods from a "Trade Agreement Partner," currently the U.K., EU, Japan, South Korea, Mexico, Canada and "any trading partner with which the United States concludes a final Agreement on Reciprocal Trade."

  To qualify, the goods must also not be subject to antidumping or countervailing duties, and the aluminum, copper or steel must be entirely smelted and cast or melted and poured in a trade agreement partner country.

This latest Presidential Proclamation is very detailed, and Deringer recommends that U.S. importers review Metals-ANNEXES-I-A-I-B-II-III-IV.pdf for the applicability of the new tariff rates.