CBP filed its status report early today, March 31, in Atmus Filtration to the CIT. It’s an important one.

Here are some key points regarding what Consolidated Administration and Processing of Entries (CAPE) “Phase 1” will and won’t be doing:

•  CAPE Phase 1 will be limited to entries that “are either unliquidated or for which the 90-day voluntary reliquidation period under 19 U.S.C. § 1501 has not expired,” despite Judge Eaton’s latest amended order extending relief to finally liquidated entries. However, CBP says that it “intends to expand CAPE to process finally liquidated entries in a subsequent phase of development.”

•  CAPE Phase 1 will accept entries where the liquidation status is “Suspended,” “Extended,” or “Under Review,” as well as warehouse and warehouse withdrawal entries, but in these instances, refunds will be provided in the normal course upon liquidation, rather than immediately. This includes entries subject to AD/CVD.

• The following categories of entries will not be accepted for CAPE Phase 1: entries flagged for reconciliation; entries designated on a drawback claim; entries covered by an open protest; entries not filed in ACE/entries without a liquidation status in ACE; entries subject to AD/CVD for which Commerce has issued liquidation instructions that are pending liquidation under 19 U.S.C. § 1504(d).

• “CBP will take up to 45 days from its acceptance of a CAPE Declaration to review and liquidate the validated entry summaries identified on the CAPE Declaration, unless there is a compliance concern necessitating further review.”

For subsequent phases of CAPE, CBP says it expects to develop the following functionalities, among others: “Enhanced tools and validations to ensure compliance”; “Tools to further streamline revenue enforcement in situations in which there is an outstanding bill for non-IEEPA duties associated with an entry included on a CAPE Declaration”; “The capability to process entries for which liquidation is final”; and “The capability to process non-[ABI] entries where no entry summary lines exist.”

A few key takeaways. First, none of this changes our advice to continue protesting and consider filing a refund suit. Nothing in the status update addresses the protestability issue or whether suit is required. And although entries with an open protest won’t be covered in Phase 1, neither will finally liquidated entries. It is unclear whether importers can withdraw their protests and expect to be able to take part in CAPE Phase 1.

Second, this update suggests that importers should wait until after the 90-day voluntary reliquidation window to protest, just in case CAPE comes out in time for CBP to process these entries. CBP claims that if there’s at least 10 days left on the 90-day voluntary reliquidation clock, it can process them in time. However, waiting to file can mean missing timely protests altogether.

And third, CBP’s status update makes clear that it will be spot-checking entries for compliance issues and seeking offset on refunds. Again, another reason for clients to make sure that their entries are in order and that they have supporting documentation for their classification, value, COO, etc.

The NCBFAA Customs Committee and Counsel of Sandler, Travis & Rosenberg, P.A., will continue to monitor the CIT and CBP actions related to the IEEPA refunds and provide updates to our members, as available.

NBCBA_Carrier_Notification

To summarize, many countries have differing tariff rates according to Annex I in the Executive Order. Any country not listed in Annex I will continue with the 10% tariff as before.

Goods from the European Union (EU) will have it a little differently. If a good has a general duty rate of under 15%, then the Reciprocal Duty rate will equate to 15%. If a good has a general duty equal to or greater than 15%, then that rate will apply and the Reciprocal Duty rate will be 0%.

Goods determined by US Customs to have been transshipped to evade applicable duties will be subject to an additional 40% in lieu of the Reciprocal Duty rate. This does not include any other applicable fines or penalties. US Customs is not allowing for mitigation or remission of penalties for goods found to have been transshipped.

As is usual, this situation is fluid and is subject to change with little warning. Also, the US is in negotiations with various countries, and their Reciprocal Duty rate may change.

As always, we will keep you informed of any changes as we become aware of them.

Thank you.

The Commerce Department’s Bureau of Industry and Security (BIS) in a Federal Register notice today said it will include new steel derivatives involving household appliances under the Section 232 50% tariffs, effective 12:01 a.m. ET on June 23. In the notice, BIS specifically revises Annex 1 to add the following additional steel derivative products:

(1) combined refrigerator-freezers under HTSUS subheading 8418.10.00

(2) small and large dryers under HTSUS subheadings 8451.21.00 and 8451.29.00

(3) washing machines under HTSUS subheadings 8450.11.00 and 8450.20.00

(4) dishwashers under HTSUS subheading 8422.11.00

(5) chest and upright freezers under HTSUS subheadings 8418.30.00 and 8418.40.00

(6) cooking stoves, ranges, and ovens under HTSUS subheading 8516.60.40

(7) food waste disposals under HTSUS subheading 8509.80.20

(8) welded wire rack under statistical reporting number 9403.99.9020

 The tariff imposed under Proclamation 10896 will be assessed on these derivative products for the value of the steel content in each product. All other tariff codes for steel and steel derivative products in Annex 1 remain unchanged, BIS said.  “Note that products classified under statistical reporting number 9403.99.9020 continue to be subject to tariffs under Proclamation 10895 as derivative products of aluminum for their aluminum content,” BIS said in the notice.

Here is the link posting:

2025-11067 Home Appliances added to Steel Derivates List of Commodities

Regards / Steve Sanders

As before, the situation is fluid and changes may arrive with very little notice. We will continue to post changes as they become available. The information presented here is from other sources and may not be considered legally binding.

The US will lower the Reciprocal Tariff to 10% for a period of 90-days. This is down from 125% imposed last month. However, the 20% Fentanyl Tariff remains in effect as does the original Section 301 Tariffs from Trump’s first term (7.5% or 25% depending on the HTS number used) as well as the Section 232 Tariffs (Aluminum/Steel and Autos/Auto Parts).

We are awaiting further information from US Customs on implementation. The information above is garnered from news reports and is not legally binding. We will keep monitoring the situation and provide additional information as it becomes available.

The statements above are based on the best information available to us at the time. They are not legally binding and are subject to change as new information becomes available.

• Section 301 Tariffs from 2018 of 7.5%, 25%, or 100% (on a few items)
  • The tariff rate applied is determined by the tariff classification number used for importation
• IEEPA Fentanyl Tariff of 20%
• IEEPA Reciprocal Tariff of 125%

If you combine all the maximum tariffs listed above together, you will get 245%. Does this mean that all Chinese products are 245%. No. Most products will be between 132.5% and 170%.

The products which have 100% tariffs include photovoltaic cells, electric vehicles, electric vehicle batteries, battery parts, and syringes.

As always, the situation remains fluid and information can change with very little notice. We will endeavor to keep this page updated as new information comes in.

The IEEPA Reciprocal Tariff rate for China has, which had been increased to 84%, has now been reportedly increased to 125%. When combined with the earlier IEEPA Fentanyl Tariff rate of 20%  and the Section 301 tariffs enacted in 2018, that means the China tariffs reach from 152.5% to 170%.

Again, this is information being reported by the news outlets and has not been officially confirmed from US Customs. We will continue to post new information as it becomes available.

*** Update: 4/10/2025***

We’re received guidance from US Customs that the information above is correct. Goods with country of origin of China that crossed after 12:01 a.m. EDT 4/9/2025, but before 12:01 a.m. EDT 4/10/2025, will have an IEEPA Reciprocal Tariff rate of 84%. Such goods that cross after 12:01 a.m. EDT 4/10/2025 will have an IEEPA Reciprocal Tariff rate of 125%, Please remember that previous duty rates still apply.