Key Takeaway: In today’s tariff-heavy enforcement environment, Customs and Border Protection (CBP) is not waiting for problems to reveal themselves. It is increasingly using data mining and other analytics to identify classification, valuation, origin, and other trade-data anomalies, resulting in sharply increased use of CF-28 Requests for Information as a result. These inquiries should not be treated as routine or being limited to the single entry under review, as CBP expects importers to apply the result of any determination across all analogous entries. A CF-28 often is a warning that CBP is looking at an entire pattern or type of imports, and importers that fail to respond accordingly risk inviting broader scrutiny, additional duty exposure, and potential enforcement consequences.
This Week in International Trade: Does CBP really have a DEFCON-style tracking center? Well, if NORAD tracks Santa every Christmas Eve, why not? Maybe they even share tracking equipment.
This week’s international trade developments include the following:
Tariff Refunds
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CAPE refund processing continues at scale. As of October 2nd, CBP had received 297,887 Consolidated Administration and Processing of Entries (CAPE) declarations. 209,262 passed validation, covering 27.4 million entries representing about $136.6 billion in potential and certified refunds accepted for processing. 6.2 million entries failed validation, primarily because they were outside CBP’s 90-day reliquidation window, lacked the Chapter 99 HTS numbers tied to the International Emergency Economic Powers Act (IEEPA) duties, or had already been submitted on a prior declaration.
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CBP deploys CAPE Phase 3 for finally liquidated entries under court order. CBP successfully launched Phase 3 of the CAPE refund system on October 6 for finally liquidated entries belonging to importers that sued in the Court of International Trade (CIT) and obtained court-ordered reliquidation that had provided their importer of record information by July 31, 2026. 477 declarations covering 425,517 entries have been accepted. CBP has indicated that it will soon issue instructions for other importers who provided their Importer of Record (IOR) information later than July 31st.
Tariff Litigation
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IEEPA refund dispute continues over AD/CVD ‘type three’ entries. Judge Eaton is moving towards a resolution of how CBP should treat entries subject to both IEEPA duties and antidumping/countervailing duties (AD/CVD). Judge Eaton directed plaintiffs and plaintiff-intervenor the National Seafood Association to file refund-related motions by October 19th, with the government’s response due November 9th. AD/CVD entries are the largest remaining class of entries with no refund mechanism. The issue is how such refunds would occur, when AD/CVD duties can take years to reach a final and definitive duty rate.
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CIT certifies nationwide importer class in IEEPA refund litigation. The CIT certified a nationwide Rule 23(b)(2) class in the lead IEEPA refund case, opening a path for non-litigating importers, who may not have enough at stake to warrant a CIT 1581(i) filing, to gain refunds. The ruling is intended to broaden access to refunds for importers left out of CAPE or deterred by litigation cost, but a Department of Justice (DOJ) appeal is expected. Right now, filing a 1581(i) action remains the surest and quickest way to get a refund of finally liquidated entries.
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Section 122 tariff litigation stayed pending appeal. The Court of International Trade stayed multiple pending challenges to the Section 122 tariffs until the Federal Circuit resolves the appeals from the CIT’s May 2026 ruling that President Trump unlawfully invoked Section 122. For importers, the validity and collection of these tariffs will remain uncertain until the appellate process is completed, including potential Supreme Court review.
Tariff Policy
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USTR continues the Section 301 tariffs on Chinese goods. In a development that surprised exactly no one, the United States Trade Representative (USTR) has kept the Section 301 tariffs on China, first imposed in the Trump administration, in place.
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USTR opens consultation ahead of 2027 USMCA joint review. USTR launched a public consultation process ahead of the 2027 United States-Mexico-Canada Agreement (USMCA) joint review, requesting comments by January 12, 2027, on implementation, compliance, competitiveness, investment, economic security, and responses to non-market practices. Because the United States previously declined to confirm continuation of the agreement, annual joint reviews will now occur until all parties agree to extend the agreement or termination occurs in 2036.
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Commerce clarifies U.S.-content rules for modified metal tariffs on Canadian and Mexican goods. Commerce issued guidance on how CBP will determine the U.S.-content portion of certain Canadian and Mexican steel, aluminum, and copper products for purposes of Trump’s modified tariff regimes, under which USMCA-qualifying goods are subject to the 25% duty only on their non-U.S. content. The clarification gives importers a clearer allocation methodology but heightens the importance of origin tracing, value support, and supply-chain documentation.
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Milwaukee Framework signals new global management of steel overcapacity. The United States and 27 other members of the Global Forum on Steel Excess Capacity adopted the “Milwaukee Framework,” a coordinated trade-enforcement initiative aimed at addressing global steel overcapacity associated largely with China, including potential self-initiated AD/CVD cases, enhanced supply-chain monitoring, and stronger circumvention and evasion oversight. The framework suggests greater enforcement pressure on steel sourcing and customs compliance, even if future tariff measures remain uncertain.
Import Regulations & Enforcement
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CBP proposes major overhaul of low-value import procedures. CBP proposed significant changes for shipments valued at $2,500 or less, including mandatory electronic filing for informal and mail entries, creation of a new electronic mail entry type, bond requirements for all such entries, broker requirements for non-owner consignees, additional shipper and tracking data elements, abandonment rules for unentered mail, and liquidated damages exposure for bond defaults. The proposal would also allow certain Chapter 99 goods valued between $250 and $2,500 to use informal entry procedures.
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DOJ elevates trade fraud as a core enforcement priority. DOJ’s Fraud Division has made trade-related fraud – including tariff evasion, import fraud, and forced-labor-related misconduct – a core enforcement priority, instructing prosecutors to weigh aggravating factors such as long-running schemes, large losses, concealment, management involvement, and threats to U.S. security. Expanded whistleblower initiatives and centralized corporate enforcement oversight signal increased scrutiny of import compliance programs and higher enforcement risk for import operations.
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DOJ seeks major penalties in tile importer customs evasion case. DOJ filed a significant customs fraud action in the Court of International Trade against a tile importer and its CEO, alleging they evaded $67.9 million in AD/CVD on Chinese goods through transshipment via Malaysia, undervaluation, misdescription, and use of shell companies after a CBP Enforce and Protect Act (EAPA) investigation began. The government is seeking $222.5 million in civil penalties under 19 U.S.C. § 1592 in addition to unpaid duties.
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EAPA interim measures face renewed due-process challenge. Three more golf-cart and low-speed vehicle importers asked the CIT to block CBP interim measures imposed in an EAPA investigation, arguing that waiting for a final evasion determination would be manifestly inadequate because the interim measures are already causing drastic harm. The government maintains that review must await a final determination under 28 U.S.C. § 1581(c), while the importers rely on the Icon electric vehicle case to support immediate constitutional review.
Export Controls & Economic Sanctions Regulations & Enforcement
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State Department proposes targeted easing of defense export controls. The State Department proposed revising the International Traffic in Arms Regulations (ITAR) and U.S. Munitions List to remove certain less-sensitive or catch-all controlled items, create a new license exemption for temporary exports of foreign defense articles back to their foreign manufacturers. Comments are due by November 30th.
International Financial Regulations & Enforcement
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Large AML penalty underscores trade-based money laundering risk. A large financial institution was fined $350 million over alleged systemic AML deficiencies, including an alleged failure to properly detect and report about $13 billion in suspected trade-based money laundering activity from 2014 to 2025. The case reinforces regulators’ continued focus on having appropriate internal controls, transaction monitoring, customer due diligence, and suspicious activity reporting in cross-border payment and trade-related activity.
Cross-Border Transactions
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CFIUS data show short-form declarations increasingly end without clearance. New CFIUS data show that short-form declarations are becoming less likely to result in definitive clearance: in 2025, 47 of 140 declarations (about 34%) did not produce clearance, including 36 requests for full notices and 11 “shoulder shrug” outcomes without safe harbor, up from 24 of 116 declarations (about 21%) the year before. This means that foreign investors increasingly need to consider filing full joint voluntary notices which, although taking longer, result in a definitive determination as to whether the transaction has received safe harbor clearance.
Non-Trade Fun Fact of Interest Only To Me: The 1904 Olympics marathon in St. Louis was a disaster. It took place in extreme heat, with many runners dropping out from exhaustion and dehydration, with one runner collapsing with severe internal injuries caused by breathing in dust. After 3 hours and 13 minutes, Fred Lorz crossed the finish line, which turned out to be a problem because he’d dropped out of the race after 9 miles, got a lift in a car, and rejoined the competition at the 20th mile. He eventually admitted cheating, leaving the gold medal to Thomas Hicks, who barely made it to the finish line and then collapsed because he had taken too much brandy and strychnine (most commonly used as rat poison) to fortify himself to finish the race. Maybe he should have adopted the strategy of Australian runner Edwin Flack, who eight years earlier employed a butler to ride beside him on a bicycle to give him refreshments as he competed in the 1896 Olympics. That’s the kind of Olympics competition for me.