10/24/2025

U.S. Proposes Trade Sanctions Against Nicaragua Over Labor and Human Rights Concerns

Check out this week’s Customs Corner to read about proposed trade sanctions against Nicaragua, CBP updates, and more.

Trade and Customs Updates

1) U.S. Proposes Trade Sanctions Against Nicaragua Over Labor and Human Rights Concerns

The Office of the United States Trade Representative (USTR) has announced a proposal to impose significant trade restrictions on Nicaragua, citing the country’s ongoing violations of labor rights, human rights, and the rule of law. According to the USTR, Nicaragua’s actions are deemed unreasonable and pose burdens or restrictions on U.S. commerce, making them actionable under Section 301 of the Trade Act of 1974.

 

The proposed measures include the possible suspension, withdrawal, or prevention of benefits for Nicaragua under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). Options under consideration range from suspending all CAFTA-DR benefits—including tariff concessions and the inclusion of Nicaraguan content for other CAFTA-DR partners—to applying tariffs of up to 100 percent on some or all Nicaraguan imports. These measures could be implemented immediately or phased in over a period of up to 12 months.

 

The USTR is seeking public input on the proposed actions, specifically regarding:

 

  • The suspension of CAFTA-DR benefits to Nicaragua, including the effective date and scope of such a suspension.
  • The imposition of increased tariffs on Nicaraguan imports, including which sectors should be targeted, the level of tariff increases, and the timing for their implementation.

 

Stakeholders are encouraged to provide feedback on whether targeted tariffs or the withdrawal of trade concessions would effectively address Nicaragua’s policies, or if such measures might disproportionately impact U.S. interests, particularly small- and medium-sized businesses and consumers.

 

Written comments must be submitted to the USTR by November 19, 2025, in accordance with the provided instructions.

 

References:

 

2) CBP to Automate ACE Secure Data Portal Account Applications for Importers

U.S. Customs and Border Protection (CBP) announced that, starting October 30, 2025, it will automate the application process for new ACE Secure Data Portal (ACE Portal) top accounts featuring the Importer sub-account view. This update is designed for trade entities that already have a CBP Form 5106 (5106 record) on file but do not currently have access to the ACE Portal. The upcoming enhancement will streamline and modernize how importers can access and utilize the Importer sub-account features within the ACE Portal, improving efficiency and user experience for the trade community.

 

Reference:

CSMS # 66577014 - Enhanced ACE Portal Account Application Coming October 30 – Ensure CBP Form 5106 Information Is Up-to-Date

 

3) CBP Updates Payment Process for Periodic Monthly Statement Participants

The U.S. Customs and Border Protection (CBP) has announced significant changes to its National Customs Automation Program (NCAP) test related to the Periodic Monthly Statement (PMS) process. Under the new policy, participants in the PMS test must now submit electronic payments for any supplemental duty bills that arise from underpayment of estimated duties, taxes, and fees on entries originally paid through the PMS system.

 

Previously, these supplemental duty bills for liquidated entries could be paid by check. However, with this update, check payments will no longer be accepted for such cases. Instead, PMS test participants are required to use either ACH Debit or ACH Credit for payments. ACH Debit transactions should be made directly through the U.S. Treasury’s Pay.gov platform, utilizing the CBP Bill Payments form. For those opting for ACH Credit, specific instructions can be obtained by contacting [email protected].

 

Payments for post summary corrections made prior to liquidation can still be paid by check.

 

These changes will take effect 60 days after publication in the Federal Register, with the operational date set for October 16, 2025. Participants are encouraged to update their payment processes accordingly to ensure compliance with the new requirements.

 

Reference:

 

Get expert advice on customs and foreign trade, direct from our comprehensive customs brokerage and trade services teams. 

Contact an expert