Geodis U.S. Trade & Customs Update

Geodis U.S. Trade & Customs Update

Section 122 Emergency Tariffs

The U.S. Court of International Trade recently ruled that the temporary 10% global Section 122 tariffs were unlawful. While a temporary stay currently allows U.S. Customs and Border Protection (CBP) to continue collecting these duties, Section 122 tariffs are statutorily limited to 150 days and are scheduled to expire on July 24, 2026, unless Congress takes further action.

IEEPA Refund Process

Following recent court decisions invalidating certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the federal government is working through a potential refund process involving approximately 53 million import entries and an estimated $166 billion in duties.

Current milestones:

• June 2, 2026: The government formally appealed the court's universal refund directive, arguing that refunds should not automatically extend to importers who were not parties to the underlying litigation.
• June 29, 2026: CBP's reconciliation phase is expected to be completed.
• Late July 2026: Processing of finally liquidated entries is expected to begin.
  • Refund eligibility for finally liquidated entries remains uncertain. The Department of Justice has argued that certain importers may need to pursue individual claims before the Court of International Trade to obtain refunds. As a result, the timing and scope of refunds remain subject to ongoing litigation.

ACH Requirements for Refunds

CBP now issues refunds exclusively through electronic payment. Importers should verify that:

• ACE Portal access is active
• ACH refund information is current.
• CBP Form 5106 information is accurate and up to date.
• U.S. banking information is properly configured to receive electronic refunds.

Failure to maintain current account information may delay refund processing.

Section 232: Metals & Pharmaceutical Actions

Metals Tariff Changes: Several significant adjustments have been made to Section 232 tariff administration:

• Tariffs on covered steel, aluminum, and copper products are now assessed against the full customs value of imported articles rather than solely the value or weight of the metal content.
• Duty rates are tiered based on foreign versus U.S. content.
• Derivative products containing less than 15% metal by weight are exempt from Section 232 duties.
• Certain agricultural equipment, HVAC systems, and mobile industrial machinery have received reduced tariff treatment.
• Additional steel and aluminum derivative products, including certain storage racks and lithographic plates, have been added to coverage.

Pharmaceutical Tariff Program: A new tariff framework targeting patented pharmaceuticals and active pharmaceutical ingredients (APIs) is being phased in.

Key dates:

• June 12, 2026: Deadline to submit company-specific onshoring applications to the Bureau of Industry and Security (BIS) to qualify for a reduced tariff rate.
• July 31, 2026: A 100% tariff is scheduled to apply to companies specifically identified in Annex III.
• September 29, 2026: The tariff expands to other importers of covered patented pharmaceutical products.

Standard generic drugs and biosimilars remain exempt under the current framework.

Reduced rates may be available for imports originating from certain trade-partner countries, including the United Kingdom, European Union, Japan, South Korea, Switzerland, and Liechtenstein.

Section 301: Forced Labor Enforcement Actions

The U.S. Trade Representative (USTR) has proposed a new framework targeting countries with alleged deficiencies in forced labor enforcement.

Proposed Forced Labor Duties

USTR has categorized approximately 60 economies based on the effectiveness of their forced labor prevention and enforcement programs.

Proposed measures:

• 10% additional duties on imports from countries determined to have formal forced labor prohibitions but inadequate enforcement.
  • Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan officially maintain domestic import prohibitions on forced labor goods but have failed to enforce them effectively.
• 12.5% additional duties on imports from countries determined to lack effective forced labor enforcement frameworks.
  • The remaining 54 trading partners—including major manufacturing nations like China, Japan, India, the United Kingdom, Brazil, South Korea, and Vietnam—have neither imposed nor enforced any meaningful forced labor import bans.

Proposed exemptions:

USTR has proposed exemptions for certain critical supply-chain products as well as a limited apparel relief mechanism designed to mitigate the impact of the proposed duties.

Key dates:

• June 22, 2026: Requests to appear at public hearings are due.
• July 6, 2026: Written comments are due.
• July 7, 2026: Public hearings begin.

Importers with sourcing exposure in affected countries should evaluate potential duty increases now and consider participating in the comment process where appropriate.

Section 301: Excess Capacity Investigation

USTR's Section 301 investigation into structural excess capacity and production in manufacturing sectors has moved beyond the public comment and hearing phase and is currently under review.

The investigation covers 16 economies, including China, the European Union, Japan, South Korea, Mexico, Vietnam, India, and several Southeast Asian manufacturing hubs.

While no trade measures have been announced, USTR is evaluating whether foreign government policies and industrial support programs are creating unfair competitive advantages that burden U.S. commerce.

The investigation could ultimately result in additional Section 301 tariffs or other trade remedies later this year.

Importers should monitor developments closely, particularly if they source manufactured products from countries covered by the investigation.

Section 301: New Country-Specific Investigations

In addition to the above noted investigations, USTR has launched several country-specific Section 301 investigations that may result in additional tariffs or trade restrictions.

Brazil Investigation

USTR is continuing its investigation into Brazil's digital trade, intellectual property, and market access practices.

As part of that process, USTR has proposed a 25% tariff action on covered imports from Brazil.

Key dates:

• July 1, 2026: Public comment deadline.
• July 15, 2026: Statutory deadline for final action.

Vietnam Investigation

On May 29, 2026, USTR initiated a new Section 301 investigation focused on intellectual property rights and enforcement concerns in Vietnam.

Key Date:

• July 2, 2026: Deadline for public written comments.

Given Vietnam's growing role in global sourcing strategies, importers should closely monitor this investigation for potential future tariff actions or compliance requirements.

Executive Order on Customs Enforcement

A June 3 Executive Order introduces significant changes to customs enforcement priorities and importer accountability.

Key Dates:

• July 18, 2026 (45-Day Recommendations Mandate): The Secretary of Homeland Security (DHS), in consultation with the Office of Management and Budget (OMB), must submit formal legislative recommendations to the President to permanently strengthen customs enforcement and close existing Importer of Record (IOR) accountability gaps.
• September 1, 2026 (90-Day Mandate): DHS must implement streamlined tracking, rapid seizure, voluntary cargo abandonment, and expedited forfeiture processes for noncompliant shipments.
• November 30, 2026 (180-Day Mandate): CBP must launch new IOR eligibility rules, registry cleanups, risk-tiering frameworks, and minimum tangible U.S. asset/bonding mandates.
• June 2027 (1-Year Mark): DHS will submit an official report to the President reviewing the overall effectiveness and economic impact of these enforcement changes.

Importer of Record (IOR) Restrictions

• CBP will remove IORs who are inactive and verify remaining/active IORs for compliance.
• CBP will assign risk tiers based on an IORs compliance history and audit results.
• Foreign importers will face increased scrutiny and limitations regarding:
  • Use of informal entry procedures.
  • Eligibility for standard continuous customs bonds.
  • Demonstration of sufficient U.S.-based assets or financial security.

Good Standing Requirements

CBP is expected to expand enforcement against importers with unresolved compliance deficiencies, potentially restricting import privileges and broker access for repeat offenders.

Enhanced Supply Chain Data Requirements

Importers must proactively provide expanded data disclosures to CBP.

• Required data points: Projected import volumes, beneficial ownership, and business affiliations.
• Required documentation: Foreign tax details, domestic asset records, and factory-level traceability.

Importers should anticipate expanded requests for:

• Factory-level identification data.
• Product traceability information.
• Material composition details.
• Production and sourcing records.

Increased Liability Exposure

The Executive Order accelerates collection actions against customs bonds and collateral while increasing compliance expectations for customs brokers conducting client due diligence.

• Repeat compliance offenders will receive zero penalty mitigation from CBP.
• Minimum financial penalties and liquidated damages for bond breaches will sharply increase.
• Customs brokers face maximum statutory penalties for failing to vet clients or delaying CBP responses.

What Importers Should Be Doing Now

With CBP shifting toward more aggressive enforcement and supply-chain verification, importers should begin preparing immediately.

Review Importer of Record Structures

• Confirm that your Importer of Record structure remains compliant, particularly if your organization relies on foreign entities, related-party importers, or nonresident importer arrangements.

Evaluate Bond Sufficiency

• Review continuous bond levels against current and projected duty exposure, especially if your products are subject to Section 232, Section 301, or other special tariff programs.

Strengthening Supply Chain Documentation

• Ensure your organization can quickly produce:
  • Factory and manufacturer identification data.
  • Country-of-origin records.
  • Bills of materials.
  • Material composition documentation.
  • Supplier certifications and traceability records.
  • Importers unable to substantiate sourcing claims should expect increased compliance risk.

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