CBP Releases Guidance on Modifications to Section 338
On Friday, September 11, CBP released guidance on the modifications to Section 338 announced via Presidential proclamation on September 8. These modifications are effective as of 12:01 AM ET on September 15 and include a selection of tariffs that have been removed from the orders as well as a slew of new tariffs that have been added. Additionally, the Section 232 exemption under 9903.03.15 is now only applicable if the item in question is potentially subject to the duties under 9903.03.13. Products potentially subject to 9903.03.12 and 9903.03.14 can no longer claim this exemption.
To view a full list of the changes, CBP has provided an updated Section 338 HTS list which can be found attached to the CSMS or downloaded via the hyperlink above.
The exclusions from Canada also announced on September 8 become effective at 12:01 AM ET on September 29. CBP has not yet released any additional guidance on the import bans.
SMS Two-Factor Authentication Now Available for ACE Portal Logins
As of September 12, CBP has advised that SMS two-factor authentication is now available as a login authentication option for the ACE portal. You now have the option to register a mobile phone number to receive login security tokens via SMS. Once your phone number is registered, you may select either email or SMS as a method to receive the security token for future logins. Phone numbers can be edited or removed under the manage preferences feature.
CAPE Phase 3 Now Scheduled to Launch October 6
Brandon Lord, the executive director of the trade programs directorate of CBP’s office of trade has advised in a declaration published September 15 that CAPE Phase 3 is now scheduled to launch on October 6. Phase 3 was previously scheduled to launch in late July and was delayed due to needing additional time to program system validations. Phase 3 focuses on finally liquidated entries subject to IEEPA duties for importers who have filed suit at the Court of International Trade and have received an order for reliquidation.
As always, we continue to encourage our importers to take proactive measures to safeguard any potential refunds and mitigate procedural obstacles that may restrict future recovery operations for entries not included in a CAPE declaration. Importers with entries that have already liquidated should strongly consider filing protests with CBP. We also strongly encourage seeking guidance from an experienced trade attorney.
Carmichael can help identify missed opportunities to file a CAPE declaration and assist with filing protests to protect your right to IEEPA refunds. Contact your local Carmichael representative for support.
UFLPA List Expansion Increases Focus Outside of Xinjiang
With the August expansion of the Uyghur Forced Labor Prevention Act (UFLPA) entity list, it is becoming increasingly obvious that forced labor enforcement is shifting away from Xinjiang to a more widespread focus on all companies operating in China with ties to Uyghur forced labor. Almost half of the 43 companies added in August are companies that operate outside of Xinjiang. Considering that any amount of exposure to a company on the entity list is grounds for detention of an entry, it is crucial that importers fully map their supply chains and take steps to minimize their risk of exposure.
Customs and Border Protection reminded those in attendance during the 2026 Trade and Cargo Security Summit in Dallas, Texas earlier in September to be sure to acquaint themselves with the CBP Forced Labor Enforcement Operational Guidance for Importers. This important guidance provides a consolidated overview of the three authorities which CBP uses to prevent the import of goods produced with forced labor and helps to provide transparency for importers. It is a valuable resource for those looking to ensure that their supply chains are safe from the presence of forced labor.