Section 338 Canada Tariffs Challenged in Court
On October 20 the first lawsuit challenging the Section 338 tariffs against Canada was filed in the Court of International Trade. The plaintiff of the case, Gellert Global Group, has requested the case proceed as a class action suit. A press release issued by the representing firm, Liberty Justice Center, argues that the administration has exceeded its statutory authority and is causing immediate harm to American businesses, suppliers, and consumers. The challenge being presented centers on the distinction between foreign discrimination and ordinary trade disputes as well as several other arguments including the fact Section 338 has never been used to implement tariffs until now and that the 30-day waiting period for Section 338 was violated.
We will be watching to see how this case moves through the courts and will keep you informed of the progress.
No Section 232 Tariffs for Wind Turbines
In a Proclamation issued on October 22, the White House has decided to forgo the imposition of Section 232 tariffs on wind turbines and their parts. Instead, the White House directs the Secretary of Commerce and the Trade Representative to pursue negotiations to address the threats to national security found by the investigation. An update on the status of negotiations is required within 180 days of the proclamation. Imports will be monitored and the Secretary has been instructed to advise the President of any circumstances that might indicate a need for further action in the future.
Comments Requested on Continued Suspension of Section 301 Action on China Maritime Industry
In a Federal Register notice published on October 26, the United States Trade Representative has requested comments on the continuation of the suspension on the Section 301 actions in response to China’s targeting of maritime, logistics, and shipbuilding sectors for dominance. The comment period opened on October 23 at 9 AM ET and will close on October 30 at 5 PM. To ensure your comments are considered, they must be submitted before this deadline. Comments may be submitted via the electronic portal using docket number USTR-2026-0694.
White House Announces Second Round of Section 338 Updates
In a Presidential Proclamation issued on October 23, the White House announced they are updating the list of tariff numbers subject to Section 338. These changes are effective at 12:01 AM ET on October 30th.
22 tariff numbers are being removed from the scope of the orders while 100 HTS numbers are being added to the scope. The added tariffs all fall under HTS number 9903.03.14. The only exemption available for these new additions is the civil aircraft exemption.
The removed items include goods such as cardboard boxes, film, refrigeration equipment, and seaweed. The new items include carpets, certain valves, cocoa powder, paint, artificial wax, vinyl flooring, and more.
CPSC Withdraws Warning Letters for FTZ Entries
Recently, some importers may have received erroneous warning letters from the Consumer Product Safety Commission for some FTZ type entries. These erroneous warnings would have gone out between October 6 and October 13. CPSC has acknowledged their mistake via letter to affected importers. The letter serves as a withdrawal of any warning notices received.
While in this instance the letters were unwarranted, it does serve as an excellent reminder that CPSC eFiling for FTZ type 06 entries will begin on January 8, 2027 – just a little over two months away. Importers with CPSC regulated goods should be working towards having all requisite CPSC information now so that they are ready to begin eFiling in January.
Plaintiffs Argue for CAPE Phase 4 for Type 03 Entries
In a motion filed on October 19, IEEPA plaintiffs Aditya Birla Chemicals and Pack Perfect argued that CBP should deploy a fourth phase of the Consolidated Administration and Processing of Entries (CAPE) system to include type 03 entries that were subject to IEEPA tariffs. Type 03 entries are consumption entries covered by antidumping and countervailing duties.
Their argument does not stem from whether the duties should be refunded, as the scope of the refund orders makes it clear that the duties are to be returned, but on the timing of the refunds. They argue that the government has no justification to withhold the IEEPA duties from type 03 entries and that CBP is already capable of delivering refunds for these entries without impacting AD/CVD liability.
As this new development progresses, we will keep you informed.
Financial Transactions Tab Coming to ACE Portal Tomorrow
On October 29, CBP will be making updates to the ACE Secure Data Portal Importer sub-account that will convert the existing ACH Refund Authorization tab into a sub tab under the new Financial Transactions tab. The goal of this change is to consolidate current and future financial transaction tabs under a single header. The new tab will function the same as the existing ACH Refund Authorization tab. Additionally, the Get Info/Refresh button which is currently used to retrieve updated ACH refund data will be removed. Current ACH refund data will be retrieved automatically beginning October 29.
DHS Adds BGI Group to UFLPA List
The Department of Homeland Security is banning imports from BGI Genomics, MGI Tech, and Shenzhen BGI Technology for suspicion of using forced labor from the Xinjiang region of China. This new addition will bring the total number of banned companies to 190. These listings will take effect on October 29.