09/26/2025
U.S. Announces Tariff Adjustments on Select EU Goods Under Framework Agreement
Check out this week's Customs Corner to read about the tariff adjustments on select EU goods under framework agreement, the upholding of Section 301 lists 3 and 4A tariffs on Chinese imports, and more
Trade and Customs Updates
1) U.S. Announces Tariff Adjustments on Select EU Goods Under Framework Agreement
The U.S. has amended its Harmonized Tariff Schedule to reduce or remove tariffs on select European Union goods—including automobiles, auto parts, aircraft, and pharmaceuticals—effective August and September 2025, as part of a Framework Agreement aligning tariff policies between the two regions.
The U.S. Department of Commerce’s International Trade Administration (ITA) and the Office of the United States Trade Representative (USTR) have issued a Federal Register notice amending the Harmonized Tariff Schedule of the United States (HTSUS) to implement key elements of a Framework Agreement with the European Union. The changes will adjust tariffs on a variety of EU products, including automobiles and auto parts covered by Proclamation 10908, natural resources such as cork, all aircraft and aircraft parts, as well as generic pharmaceuticals and their ingredients.
Under the new amendments, tariffs on automobiles and automobile parts from the EU will be reduced or removed effective August 1, 2025, for goods entered for consumption or withdrawn from warehouse for consumption, as outlined in Annex II (Part A) of the notice. The modifications to tariffs on aircraft, aircraft parts, and other reciprocal tariffs detailed in Annex II (Part B) will take effect on September 1, 2025.
In line with Executive Order 14346 and the Potential Tariff Adjustments for Aligned Partners (PTAAP) Annex, certain EU products specified in Annex I of the notice will be exempt from tariffs imposed by Executive Order 14257 effective September 1, 2025. The products excluded in Annex I are similar to Section 301 exclusions in that the product must meet the description provided in Annex I exactly. Aircraft and aircraft parts will be exempted from tariffs imposed by Proclamations 9704, 9705, and 10962. The tariff reductions reflect the EU’s formal legislative action to enact similar reductions, as called for in the Framework Agreement.
For automobiles and auto parts, if the Most Favored Nation (MFN) tariff is 15% ad valorem or higher, tariffs under Proclamation 10908 will be removed for EU products; if the MFN tariff is below 15%, the combined tariff will be adjusted to a maximum of 15%. These changes will be reflected in the updated HTSUS and are designed to facilitate transatlantic trade in line with the commitments made under the Framework Agreement.
The updated HTSUS codes will be implemented in the Automated Commercial Environment (ACE) at 12:01 a.m. Eastern Daylight Time on September 25, 2025, coinciding with the publication of the Federal Register Notice (FRN). Filers will be able to update previously submitted entries with the new HTSUS numbers after this deployment. For unliquidated entries where estimated duties have already been paid, importers may submit a Post Summary Correction (PSC) to request a refund, which will be processed upon approval at the time of liquidation. If the entries have already been liquidated, importers can seek a refund by filing a protest within 180 days of liquidation, in accordance with 19 U.S.C. 1514.
Reference:
2) Federal Circuit Court Upholds Section 301 Lists 3 and 4A Tariffs on Chinese Imports
The U.S. Court of Appeals for the Federal Circuit has upheld the Section 301 tariffs on Chinese imports under Lists 3 and 4A, confirming the U.S. Trade Representative's authority to modify these tariffs and finding no constitutional violations in the process.
On September 25, the U.S. Court of Appeals for the Federal Circuit affirmed the legality of Section 301 tariffs imposed on Chinese imports under Lists 3 and 4A, rejecting challenges to the government’s authority to enact and modify these measures. The panel ruled that the U.S. Trade Representative (USTR) acted within its statutory power under Section 307(a)(1)(C), which allows the USTR to "modify or terminate any action" under Section 301 when existing actions are deemed inadequate.
The court clarified that “modify” includes the authority to significantly increase tariffs when necessary to further the policy goals underlying Section 301 and determined that this delegation of power does not violate the Constitution’s non-delegation or major questions doctrines.
Additionally, the judges noted that the tariffs are USTR actions—not presidential—and are therefore subject to the Administrative Procedure Act (APA). The court found that the USTR sufficiently addressed public comments during the remand at the Court of International Trade, upholding the tariffs under the APA.
Reference:
3) Commerce Department Launches National Security Probe into Imports of Medical Equipment and PPE
On September 2, 2025, the U.S. Department of Commerce launched a national security investigation into imports of personal protective equipment (PPE), medical consumables, and medical devices, inviting public input as part of the review under Section 232 of the Trade Expansion Act.
On September 2, 2025, the U.S. Secretary of Commerce announced the launch of a national security investigation into imports of personal protective equipment (PPE), medical consumables, and medical devices. The investigation, initiated under Section 232 of the Trade Expansion Act of 1962, aims to assess whether reliance on foreign sources for these critical medical products poses a risk to U.S. national security. The Department of Commerce’s Bureau of Industry and Security (BIS), Office of Strategic Industries and Economic Security, is inviting interested parties to submit written comments, data, analyses, or other relevant information for consideration. The Department is particularly seeking public input on specific issues outlined in the official notice, as it evaluates the potential impact of these imports on the nation’s health security and preparedness.
Comments may be submitted at any time but must be received by October 17, 2025. They may be submitted to the Federal rulemaking portal at: www.regulations.gov. The regulations.gov ID for this notice is BIS-2025-0258. Please refer to XRIN 0694-XC134 in all comments.
Further information on comment requirements can be found in the Federal Register.
Reference:
4) CBP to Launch Streamlined Electronic Refunds Process via ACE Portal in 2025
U.S. Customs and Border Protection (CBP) will launch a new ACH Refund Authorization feature in the ACE Portal on September 30, 2025, streamlining and accelerating the electronic refund process for importers and other eligible parties.
U.S. Customs and Border Protection (CBP) announced a major enhancement to its refund process, unveiling a new Automated Clearinghouse (ACH) Refund Authorization tab within the Automated Commercial Environment Secure Data Portal (ACE Portal). The new functionality will go live on September 30, 2025, and aims to make electronic refunds faster, more secure, and easier to access for importers and other parties entitled to CBP disbursements.
Currently, applicants must email a manual ACH Refunds Enrollment Form to CBP’s Revenue Division for processing. With the new ACH Refund Authorization tab, importers and similar parties with an ACE Portal account can apply for electronic refunds directly through the portal, streamlining the process and reducing reliance on paper checks and manual forms. The new tab will become the primary method for applying for ACH refunds, although those unable to access the ACE Portal can still use the manual form.
To utilize the new feature, importers must have an ACE Portal account, which allows CBP to verify the applicant’s authority to receive refunds. Once set up, only the designated account owner can apply for ACH refunds, but CBP is developing new permissions to allow broader access within trade organizations, with further details forthcoming.
Electronic refunds will be deposited to the designated U.S. bank account within one to two business days, offering significant advantages over traditional paper checks, which are slower and more susceptible to loss, misdelivery, or fraud. CBP notes that the shift to electronic refunds will also reduce administrative costs and resources associated with issuing and tracking paper checks.
For now, third parties designated by importers using CBP Form 4811 will continue to receive refunds by paper check. However, CBP encourages these parties to establish ACE Portal accounts in anticipation of future expansions of electronic refund eligibility.
CBP is urging all importers and refund recipients to transition to the enhanced electronic process to benefit from greater speed, security, and convenience. Further updates, including expanded functionality for third parties, will be announced as they become available.
Reference:
5) Opening Brief on IEEPA Tariff Legality Filed September 19, 2025
The Supreme Court will hear expedited arguments on November 5 to determine whether the International Emergency Economic Powers Act (IEEPA) authorizes tariffs, if recent tariffs exceeded presidential authority, and whether such powers violate constitutional limits.
The U.S. government filed its opening brief with the Supreme Court on September 19, 2025, in two expedited cases challenging the legality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
The Supreme Court has set oral arguments for November 5, 2025, to address whether IEEPA allows for tariffs, if the specific reciprocal and trafficking tariffs exceeded presidential authority, whether granting broad tariff powers violates the Constitution’s nondelegation doctrine, and if the federal district court in D.C. had jurisdiction over the matter.
The cases, Donald J. Trump v. V.O.S. Selections and Learning Resources v. Donald J. Trump, stem from lower court rulings that questioned the president’s authority to impose such tariffs under IEEPA, setting the stage for a significant decision on the scope of executive power in trade and national security.
Reference:
6) CBP Expands ACE Statement Entry Summary Capacity Ahead of October 2025 Rollout
U.S. Customs and Border Protection (CBP) will increase the maximum number of entry summaries per statement in ACE from 2,000 to 9,999, with the enhancement available for testing now and scheduled for production deployment on October 7, 2025.
U.S. Customs and Border Protection (CBP) has announced a major enhancement to its Automated Commercial Environment (ACE) platform, increasing the maximum number of entry summaries that can be included on a single statement from 2,000 to 9,999. This upgrade, now available for testing in the ACE Certification (CERT) environment, comes in response to the recent suspension of Section 321 de minimis duty exemption and is designed to help filers efficiently process larger volumes of entries.
The updated Statement Processing: Daily Statement (v16) CATAIR document reflecting these changes is now accessible in the ‘Draft Chapters: Future Capabilities’ section on CBP.gov. CBP plans to implement this enhancement in the live ACE Production (PROD) environment on October 7, 2025.
Reference:
CSMS # 66324213 - Entry Summary Limit Increase for Statements
7) CBP to Enhance ACE Bond Reporting Capabilities in September 2025
On September 25, 2025, CBP will upgrade the ACE Production system to support reporting of bond amounts up to 10 digits in the Importer/Bond Query, with related output record changes and updated guidance available in Version 7 of the implementation guide
U.S. Customs and Border Protection (CBP) will implement an enhancement to the Automated Commercial Environment (ACE) Production system on September 25, 2025, allowing for the reporting of bond amounts with up to 10 digits in the Importer/Bond Query.
Following this update, 10-digit bond amounts will be reported in the K2 output record, while amounts with nine digits or fewer will remain in the K1 record. The enhancement introduces a new Bond Amount Record Location Indicator in the K1 record, a dedicated Bond Amount field in the K2 record for 10-digit values and makes the Additional Information Qualifier Code mandatory in the K8 record.
These changes are detailed in Version 7 of the Importer/Bond Query implementation guide, which will be available in the “Chapters: Current Capabilities” section of the CATAIR website at deployment.
For technical questions, CBP advises contacting your assigned Client Representative, and for other inquiries related to Entry Summary, Accounts, and Revenue, reaching out to [email protected].
Reference:
8) CBP to Detain Giant Manufacturing Co. Bicycles and Parts Over Forced Labor Concerns Starting September 2025
Starting September 24, 2025, CBP will detain all bicycles, parts, and accessories from Giant Manufacturing Co., Ltd. in Taiwan at U.S. ports of entry due to concerns over forced labor in violation of federal law.
U.S. Customs and Border Protection (CBP) announced that, effective September 24, 2025, personnel at all U.S. ports of entry will begin detaining bicycles, parts, and accessories produced by Giant Manufacturing Co., Ltd. (Giant) in Taiwan.
This action follows the issuance of a Withhold Release Order (WRO) against Giant based on information suggesting the use of forced labor in its supply chain, in violation of 19 U.S.C. § 1307. The statute prohibits the importation of goods made wholly or in part by forced, convict, or indentured labor, including that of children, and empowers CBP to detain suspect shipments.
Currently, CBP enforces 53 WROs and nine Findings under this law. Shipments detained under the WRO may be excluded or subject to seizure and forfeiture if importers cannot provide proof of admissibility according to CBP regulations.
Reference:
9) ACH Refund Enrollment Update: Key Compliance Step Ahead of IEEPA Refund Litigation
Starting September 30, 2025, CBP will enable electronic refund enrollment via the ACE Portal in alignment with Executive Order 14247. This change may be critical as we await the outcome of the IEEPA Court Case and the work through the unknowns as to how refunds would be issued should the tariffs be ruled illegal.
On September 30, 2025, U.S. Customs and Border Protection (CBP) will activate new functionality in the ACE Secure Data Portal to support electronic refund transactions via the Automated Clearing House (ACH) system. This update is part of the federal government’s broader initiative under Executive Order 14247 to phase out paper-based disbursements and transition to secure, efficient electronic payments.
Importers and designated refund recipients (via CBP Form 4811) will now be able to enter and manage U.S. bank account information directly in the ACE Portal under the new “ACH Refund Authorization” tab. While CBP will not yet mandate electronic-only refunds, this enhancement is a preparatory step toward full digitization of refund processing.
Importers do not need to be enrolled in ACH duty payments to qualify for ACH refunds, making the program accessible to a broader range of businesses. However, a separate application is required to receive refunds electronically, even if a company is already enrolled in ACH for payments. Refunds are sent directly to the importer’s bank account, not to third parties such as brokers, ensuring greater control and security.
For companies with multiple divisions or IRS numbers, separate applications must be submitted for each TIN suffix if different bank accounts are used. Alternatively, one application may include a list of suffixes if a single account is preferred.
Refunds are typically initiated on the Monday after liquidation, with deposits arriving the next business day. Importers can track and reconcile payments using the REV-603 Trade Refund Report via the ACE Portal.
This transition is particularly important in light of the ongoing litigation surrounding tariffs imposed under the International Emergency Economic Powers Act (IEEPA). If the courts ultimately invalidate these tariffs, importers may be eligible for substantial refunds. However, the refund process is still to be determined, with guidance pending from CBP.
References:
CBP ACH Refund Program Overview
Executive Order 14247 – Modernizing Federal Payments
EVENT: IEEPA Tariffs and the Pending Supreme Court Decision: Strategic Guidance for Importers
Tuesday, September 30, 2025, 3:00 pm EST
Join us for a timely and critical discussion with legal counsel Alan Klestadt of GDLSK, as we unpack the implications of the recent court rulings on tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
With the U.S. Court of International Trade and the Federal Circuit both ruling that the IEEPA does not authorize the sweeping tariffs imposed by the Trump administration, and the Supreme Court now reviewing the case on an expedited basis, importers face significant uncertainty — and potential opportunity.
Key Topics Will Include:
- Legal overview of the IEEPA tariff litigation and current status at the Supreme Court
- Potential outcomes and what each scenario means for importers
- Refunds: Do you need to take action to preserve your right on refunds?
- Proactive steps importers should be taking now to protect their interests
- Live Q&A
EVENT: Government Shut Down Planning Webinar
Monday, September 29, 2025, 2:30 – 3:30 EST
Join NCBFAA's Counsel to learn how to keep trade flowing through this upcoming potential government shut down.
EVENT: NCBFAA Webinar “What Forwarders and USPPIs Need to Know About the FTR Revisions”
Tuesday, September 29, 2025, 1-2 pm EST
- Updates to key definitions: Buyer (purchaser), Order Party, and USPPI
- Clarification of when a customs broker, warehouse, or FTZ must or may be listed as the USPPI
- Confidentiality obligations under 19 CFR 111.24 when using import data for EEI filings
- Revised handling of the conditional data element Entry Number, including remaining ambiguities on when to report the entry number
- Best practices for compliance with the FTR
Get expert advice on customs and foreign trade, direct from our comprehensive customs brokerage and trade services teams.