On June 3, 2026 President Trump issued the executive order “Strengthening Customs Enforcement”. In the executive order the President has ordered Customs to take steps to revise eligibility regulations, guidance and policies with regards to those wishing to act in the capacity of an importer of record. The President stated that importers will need to “provide additional data and identification information”. Similarly, CBP’s current POA best practices document states that a customs broker should “To the greatest extent possible, have POA’s completed in person so the grantor’s unexpired government issued photo identification (driver’s license, passport, etc.) can be reviewed.”

Both CBP and surety companies have stated that identity theft and fraud are increasing and Customs is taking a closer look at importers Right to Make Entry (RTME). Shipments are being held at ports of entry while RTME exams are being conducted. This may involve a request to the broker for a copy of the power of attorney used to execute the release and entry as well as transactional documents from the importer to prove they own or have a financial interest in the goods. CBP is asking brokers to provide documents to support the review and authenticity of the power of attorney including government issued photo identification. Customs views RTME as a condition of release and will not release cargo until the review is concluded. This has resulted in additional storage and demurrage charges for many importers.

In light of the executive order and CBP’s own best practices document, effective July 1, 2026, A.N. Deringer will require positive identification in the form of an unexpired government issued photo ID (driver’s license, passport, etc.) for the party or parties signing any new power of attorney. Over time we will reach out to our clients which currently have a power of attorney on file without positive identification.

We would like to share the following update from the law firm Roll & Harris LLP, which offers a thorough analysis of the current developments:

"On Friday (May 29^th), the government made clear that it intends to appeal the Court of International Trade’s (“CIT’s”) sweeping IEEPA tariff refund order. While the government has yet to officially file its notice of appeal and the outcome of any such appeal remains to be seen, the implication from Friday’s government announcement is that any importer who (1) has entries that were ineligible for, or that failed, CAPE “Phase 1” processing and (2) has not yet filed an IEEPA tariff refund lawsuit, should strongly consider filing an IEEPA tariff refund lawsuit.

According to the government’s Friday filing, there are 3 groups of importers/entries:

• Group 1: Importers with entries that are unliquidated or not “finally liquidated.”

• Group 2: Importers with “finally liquidated” entries but who have filed refund lawsuits.

• Group 3: Importers with “finally liquidated” entries but who have NOT filed refund lawsuits.

We note that importers can be in both groups 1 and 2 OR in both groups 1 and 3 since the same importer can have some entries that are unliquidated and some that are "finally liquidated."

Regarding Group 1, the government believes such entries remain within U.S. Customs & Border Protection's ("CBP") authority to refund and can, therefore, be processed via CBP’s CAPE existing refund module.

For Group 2, the government believes that tariffs paid on “finally liquidated” entries cannot be refunded absent a court order and that the court must issue an importer specific refund order as a condition for CBP to be able to refund the tariffs paid by that importer. We note that while the court has not yet issued import specific refund orders, the CIT could issue such orders since this group of importers already has refund lawsuits on file.

Lastly, and most importantly, for Group 3, the government believes that there is no legal authority for such importers to obtain refunds on the “finally liquidated” entries and that the government will appeal any CIT order requiring CBP to refund such tariffs.

Friday’s filing does not explicitly say there will be no CAPE “Phase 2” for “finally liquidated” entries, but given the government’s stated intent to appeal and its categorization of the 3 groups of importers, it seems clear, at least to us, that the government will not be creating a CAPE “Phase 2” for such entries.

Per CBP’s filings in the CIT, there are approximately 330,000 importers who have paid the illegal IEEPA tariffs. At the same time, a review of the CIT case management system reveals that there are only between 3,000 and 4,000 importers who have filed tariff refund lawsuits. Measured as a percentage of the total number of importers who have paid the illegal tariffs, this means only about 1% of all importers have filed tariff refund lawsuits. Only this 1% group of importers is, therefore, on the path to receiving FULL refunds of ALL IEEPA tariffs they have paid. The other 99% of all importers may receive full refunds, but only if they are in Importer Group 1 and not in Importer Groups 2 or 3. This is a minority of importers since most importers will have at least some entries that are “finally liquidated.”

To be sure, the government is refunding a significant amount of money via CAPE. Per government statistics submitted to the court, the government has received and accepted CAPE refund claims on approximately $85 billion out of the over $166 billion in IEEPA tariffs it has collected. See here and here. But, for those importers who (1) have filed in CAPE and received error messages for some of their entries, (2) are not eligible to file in CAPE (e.g., importers in CBP’s reconciliation program), (3) have entries that are too old to file in CAPE (and more entries “time out” of CAPE with each passing day), or (4) are small importers unfamiliar with ACE, CAPE or how to obtain refunds, there remain billions of dollars of refunds that the government will not refund absent an importer specific court order to do so.

Finally, there remains a lack of clarity from the government over what it believes the phrase “finally liquidated” means in the context of IEEPA entries. The government does agree that entries liquidated less than 80 days ago are not “finally liquidated” because 19 USC 1501 gives the government the authority to reliquidate any such liquidations. However, it remains an open question, at least for now, as to whether the government agrees that entries that are the subject of an administrative protest against the assessment of IEEPA tariffs are also not “finally liquidated.” Since a protest can reach back to liquidations that occurred 180 days prior to the protest filing date, approval of such protests would drastically lessen, and in many cases eliminate, the need for importers to file individual refund lawsuits. Conversely, denial of such protests would require importers to file refund lawsuits in order to preserve their rights to refunds on such entries.

In sum, Friday’s filing makes it clear that the government does not intend to voluntarily or easily refund ALL IEEPA tariffs to ALL importers. Given Friday's developments and the continued clarity from the government regarding what "finally liquidated" means, each importer should speak with its customs counsel to determine the best way to maximize chances for a full and complete IEEPA tariff refund."

Disclaimer: The information provided in this notice is for informational purposes only and does not constitute legal advice. Importers are encouraged to consult with their customs counsel. For additional information or questions, please contact Michael Roll at (310) 294‑9501 or michael.roll@thetradelawfirm.com, or Brett Harris at (845) 255‑1850 or brett.harris@thetradelawfirm.com.

We will continue to monitor developments and provide updates as appropriate. For questions regarding your shipments, please contact your Deringer representative or customs attorney.

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.