05/08/2026
U.S. Court of International Trade Rules Section 122 Tariffs Unlawful in Split Decision
Check out this week's Customs Corner to read about U.S. Court of International Trade Rules Section 122 Tariffs Unlawful in Split Decision and more.
Trade and Customs Updates
U.S. Court of International Trade Rules Section 122 Tariffs Unlawful in Split Decision
On May 7, 2026, the U.S. Court of International Trade decided by a 2-1 vote that Section 122 tariffs are not allowed. The court’s majority said the President did not properly show the kind of balance-of-payments deficit required by law when imposing these tariffs. Instead, the President pointed to issues like a large trade deficit and other economic factors, but the court said these do not meet the specific requirement in the law.
The court did not block the tariffs for everyone, only for the specific importers who brought the case, including the State of Washington. The government now has five days to stop charging these tariffs to those plaintiffs and must refund any tariffs already paid by them, with interest. The court explained that this targeted approach helps avoid the delays that can happen when processing refunds after a court decision.
One judge disagreed, saying the President’s explanation using government economic statistics should have been enough, and that the government should have had a chance to respond before the court made its decision.
The government is expected to appeal against the ruling and ask for it to be put on hold while the appeal is considered.
No immediate action is required at this time by importers. However, Geodis are trade attorneys are watching the case closely to see if there will be future opportunities to obtain injunctions or secure refunds through protests. Updates will be provided as developments occur.
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FDA Warns Consumers After Discovering Methylene Chloride in Additional Gel Nail Polish Removers
The U.S. Food and Drug Administration (FDA) has announced the discovery of methylene chloride—a substance banned in cosmetic products—in six more gel nail polish removers currently on the market. This finding comes as part of the FDA’s ongoing surveillance program, which routinely collects and analyzes cosmetic samples for prohibited or harmful substances.
The products identified in the latest round of testing are:
- Nifeishi Nail Polish Gel Remover
- Born Pretty Magic Gel Remover
- Candy Lover Gel Polish Remover
- Eelhoe Magic Remover
- Morovan Gel Nail Polish Remover
- Gellen Time To Shine Nail Removal Kit
Methylene chloride is a volatile, colorless liquid with a sweet odor, commonly used in industrial applications such as paint stripping and metal cleaning. Its use in cosmetics is strictly prohibited by the FDA due to its established links to cancer in animal studies and its potential to pose serious health risks to humans.
The agency urges consumers to check product labels and avoid using any cosmetic products containing methylene chloride. For the full list of products identified by the FDA as containing this harmful chemical, consumers can visit the FDA’s official website at Cosmetic Products Containing Methylene Chloride | FDA
CBP Warns Importers of Scams Targeting IEEPA Duty Refunds with Launch of CAPE System
With the recent rollout of the Consolidated Administration and Processing of Entries (CAPE) system, U.S. Customs and Border Protection (CBP) is alerting importers to an increased risk of scams aimed at stealing sensitive account information. Officials expect that scammers will use social media, email, and other communication methods to try to interfere with the process of refunding International Emergency Economic Powers Act (IEEPA) duties.
CBP urges importers to stay vigilant and protect their information. If an unknown individual offers to file for an IEEPA refund on your behalf in exchange for personal, company, or banking details, it is likely a scam. Sensitive information should only be shared with trusted and verified sources. The only legitimate way to request an IEEPA refund is by submitting a CAPE Declaration through the secure Automated Commercial Environment (ACE) Data Portal. Importers are warned not to enter information into websites other than ACE that claim to process IEEPA refunds.
CBP also emphasizes that it will not request Social Security numbers, bank account details, or passwords via email or text message. If you receive a request for additional information, make sure it comes from an official CBP email address ending with “@cbp.dhs.gov.”
Be on the lookout for the following red flags:
- Requests for personal or financial information
- Offers of refunds in exchange for data
- Unsolicited emails, calls, or texts
- Pressure to act quickly
- Poor grammar, spelling errors, or suspicious links in messages
To stay safe, ensure your ACE account information is accurate and up to date, and do not respond to unsolicited emails about IEEPA refunds. CBP does not independently schedule reports to be emailed to users, except when trade users request ACE reports, which are only sent from [email protected].
Importers should be cautious of phishing attempts. Always verify the sender of emails regarding CAPE refund reports and never click on links or attachments from unverified sources. Sensitive information should only be shared in response to official CBP communications.
Suspicious emails or communications should be reported to [email protected]. The Department of Homeland Security Office of the Inspector General (OIG) also investigates fraudulent activity, and complaints can be filed through the DHS OIG Hotline.
Reference:
CSMS # 68569567 - Best Practices for Protecting Your Information Regarding IEEPA Refunds
USTR Invites Comments from Benefiting U.S. Industries on Possible End to Section 301 Trade Actions
The Office of the United States Trade Representative (USTR) is seeking feedback exclusively from U.S. industries that have benefited from existing Section 301 actions and may be affected by their possible termination. These industries have the opportunity to request that the trade actions continue.
For the Section 301 actions implemented on July 6, 2018, requests to maintain the action can be submitted through the web portal at https://comments.ustr.gov/s/ starting May 7, 2026, until 11:59 pm on July 5, 2026. For the Section 301 action from August 23, 2018, the portal will accept requests from June 24, 2026, through 11:59 pm on August 22, 2026.
If the trade actions are extended, USTR will move forward with the next stage of its review and invite public comments from all interested parties. More information and updates will be provided as the process continues.
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CBP Issues Guidance on Applying Section 232 Tariffs to Non-U.S. Content in USMCA-Eligible MHDV Imports
U.S. Customs and Border Protection (CBP) has released detailed guidance on how to apply the 25 percent Section 232 duties—mandated by Presidential Proclamation 10984—specifically to the value of non-U.S. content for approved imports of medium- and heavy-duty vehicles (MHDVs) qualifying for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA).
Presidential Proclamation 10984, issued on October 17, 2025, authorized the Secretary of Commerce to allow imports of MHDVs that meet USMCA requirements to have the 25 percent ad valorem tariff apply solely to their non-U.S. content, as outlined in heading 9903.74.03 of the Harmonized Tariff Schedule of the United States (HTSUS). Further procedural details for importers were published by the Commerce Department on February 2, 2026.
Entry filing instructions can be found in the CSMS.
The instructions also clarify that questions on ACE entry rejections related to automobile filings should be directed to the importer’s CBP Client Representative. For further inquiries about trade remedy programs, importers can visit the CBP trade remedies webpage or contact the Trade Remedy Branch at [email protected].
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CBP Releases Guidance on Technical Corrections to Metal Import Tariffs under Proclamation 11021
U.S. Customs and Border Protection (CBP) has issued new guidance on the implementation of technical corrections to Annex IV of Presidential Proclamation 11021, “Strengthening Actions Taken to Adjust Imports of Aluminum, Steel, and Copper into the United States.” This proclamation, issued on April 2, 2026, under Section 232 of the Trade Expansion Act, imposes additional duties ranging from 10% to 50% on certain imports of steel, aluminum, and copper articles and their derivatives from all countries, effective April 6, 2026.
On April 29, 2026, the Department of Commerce published a notice clarifying technical corrections to the Harmonized Tariff Schedule of the United States (HTSUS) for these duties. Among the changes, a new HTSUS classification (9903.82.01) has been established for articles that do not contain any aluminum, steel, or copper, carrying a 0% additional ad valorem rate of duty. This classification is now active in the Automated Commercial Environment (ACE) system.
Additionally, starting May 7, 2026, ACE will allow goods with a melt and pour country of the Netherlands, specifically certain U.K.-origin steel articles produced by Tata Steel UK, to be processed under the appropriate tariff headings (9903.82.04 and 9903.82.05). These U.K.-origin steel products, when declared as melted and poured in the Netherlands, can continue to benefit from the lower Section 232 steel tariff rate for U.K.-origin steel and can be counted toward the required 95% threshold of steel melted and poured for specific products until January 1, 2028.
These technical corrections are retroactive for goods entered for consumption, or withdrawn from warehouse for consumption, on or after April 6, 2026.
Importers, brokers, and filers are encouraged to refer to the full list of affected HTSUS classifications and to consult the attached documentation for further details on compliance and reporting procedures under the new tariff structure.
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CPSC Announces Webinar Series to Prepare for E-Filing
Details:
The U.S. Consumer Product Safety Commission (CPSC) is pleased to announce a series of upcoming webinars designed to guide you through the final months leading up to implementation of eFiling for most regulated products. These sessions will provide a general overview of eFiling, share what you can expect upon full implementation, and highlight updates to the Product Registry.
Deadline/event date:
Wednesday, June 3, 2026 (2:00–3:00 PM ET) – 1 Month Out
Register here: June 3 Webinar Registration
Please submit your questions by May 29, 2026,with your registration at the link above.
Webinar Details:
Attendance is limited to 1,000 participants per session.
Q&A and Chat features will not be available live; please submit all questions by the deadlines indicated above when registering.
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