Bulk Classification Breakthrough; EU–India FTA, U.S.–El Salvador Tariff Shifts, and HS 2028
NEWSLETTER | Trade Insight AI
Bulk Classification in Trade Insight AI: Speed with Legal Precision
Trade Insight AI • recently
Trade Insight AI introduces a bulk classification workflow designed to help compliance teams scale HS coding with audit-ready traceability—cutting manual effort, improving consistency across large bills of materials, and accelerating entry preparation.
Trade Agreements and Market Access
U.S.–El Salvador Deal Lifts Some Tariffs, Caps Others at 10%
STR Trade Report •January 30, 2026
The U.S. and El Salvador signed a reciprocal trade agreement complementing CAFTA‑DR that will remove U.S. “reciprocal” tariffs on certain Salvadoran goods not sufficiently produced in the U.S., eliminate such tariffs and provide CAFTA‑DR preferences for qualifying textiles and apparel, and cap remaining reciprocal tariffs at 10%. In return, El Salvador will streamline approvals and accept U.S. standards and certifications, digitize border processes, strengthen IP enforcement, avoid discriminatory digital services taxes, prohibit forced‑labor imports, and cooperate on supply chain resilience and duty evasion. The accord enters into force five days after both sides complete legal procedures, though timing for tariff changes is not yet clear.
U.S., El Salvador Sign First Western Hemisphere Reciprocal Trade Deal
USTR Press Releases •January 29, 2026
The United States and El Salvador signed a bilateral Agreement on Reciprocal Trade, described as the first of its kind in the Western Hemisphere. The pact aims to lower trade barriers, strengthen market access for U.S. exporters, and deepen supply-chain linkages; the agreement text, joint statement, and fact sheet are available. Trade teams should review provisions and implementation steps to assess tariff and regulatory impacts on regional operations.
EU-India FTA Sealed; Mercosur Delayed as EU Tightens Import Controls
STR Trade Report •January 29, 2026
The EU and India concluded a landmark FTA that cuts or eliminates tariffs on 96.6% of EU goods exports to India, projected to double EU exports by 2032 and save about €4 billion annually in duties. EU legislators have delayed the Mercosur pact, though the Commission could provisionally apply it, with leaders set to discuss next steps at an emergency summit Thursday. Brussels also launched a task force to harmonize import controls on food and feed—targeting pesticide residues—while analysts downplay follow-through on sweeping U.S. tariff threats, easing pressure for a rapid Chinese response.
U.S., Mexico Target Rules-of-Origin, Critical Minerals in USMCA Review
USTR Press Releases •January 28, 2026
Ambassador Greer and Mexico’s Economy Secretary Marcelo Ebrard advanced preparations for the first USMCA Joint Review, agreeing to intensify work on non-tariff barriers. They will open formal talks on potential reforms, including stronger rules of origin for key industrial goods, deeper collaboration on critical minerals, and tighter external trade policy alignment to defend workers and counter dumping. Any changes could raise regional content requirements and reshape sourcing decisions across North American manufacturing supply chains.
Enforcement and Risk
Commerce Finalizes Slag Pot Orders, Launches Van Trailer AD/CVD Probes
STR Trade Report •January 29, 2026
Commerce set a 33.1% net subsidy rate in amended final CVD review results for Chinese mobile access equipment (2022 POR) and preliminarily assigned a 1.84% rate in the 2023 review of Turkish rebar. It also issued AD and CVD orders on Chinese slag pots effective Jan. 26, published Q3 2025 scope rulings across multiple orders (aluminum extrusions, fresh garlic, large‑diameter welded pipe, mattresses, truck and bus tires, wooden cabinets), and initiated AD/CVD investigations into van‑type trailers and subassemblies from Canada, China, and Mexico. Importers should expect revised cash deposit/liability exposure and verify scope coverage for affected products.
CBP Detains Coffee from Mexico’s Finca Monte Grande over Forced Labor
STR Trade Report •January 30, 2026
CBP issued a withhold release order effective Jan. 29 detaining all U.S. entries of coffee harvested by Mexico’s Finca Monte Grande, citing evidence of six ILO indicators of forced labor. Importers must re-export or destroy detained shipments, or prove the coffee was not produced with forced labor under 19 USC 1307. The move escalates forced-labor compliance scrutiny across agricultural supply chains, especially coffee sourced from Mexico.
ITC 337 Update: Crafting Machines, Slabs, Skin Care, Unicycles
STR Trade Report •January 29, 2026
The ITC announced several Section 337 moves that could affect imports: an initial violation determination in 337-TA-1426 (crafting machines), a partial review of a violation finding in 337-TA-1408 (hydrodermabrasion systems), and institution of patent case 337-TA-1482 (processed slabs) brought by Cambria against respondents in Israel, Korea, and the U.S. A new complaint also targets gyro-stabilized electric unicycles, filed by Inventist and Alien Technology Group against proposed respondents in China; importers should monitor for potential exclusion orders and plan contingencies.
Classification and Tariff Changes
HS 2028 Adopted; U.S. Draft HTSUS in February, Comments Coming
STR Trade Report •January 29, 2026
The WCO has accepted 299 change sets to the Harmonized System for implementation on Jan. 1, 2028, expanding the HS to 1,229 headings and 5,852 subheadings (+6 headings, +428 subheadings; −5 headings, −172 subheadings). Highlights include new visibility for health‑emergency supplies, splitting vaccines into new headings 3007 (human, disease‑specific) and 3008 (other/veterinary), a new heading 2107 for dietary supplements, and a restructured plastics regime covering waste and single‑use items to support environmental policy and circularity. In the U.S., the ITC will issue preliminary HTSUS modifications in February with a public comment period and a September report to the President; importers should map reclassifications, confirm duty‑rate neutrality, assess PGA impacts, and update systems ahead of 2028.
CBP Reclassifies Utility Vehicles; 25% Duty Effective March 22
STR Trade Report •January 30, 2026
CBP will reclassify certain utility/campus vehicles with two-seat cabs and cargo beds as vehicles for the transport of goods under HTSUS 8704.31.01 (25% duty), rather than duty-free works trucks under 8709.19.00. In ruling HQ H304427, the agency revoked HQ 965246 and HQ 964598, effective for entries and warehouse withdrawals on or after March 22, 2026, noting these models operate beyond confined industrial areas and include safety/comfort features inconsistent with heading 8709. Importers should reassess classifications and pricing exposure now to prepare for higher landed costs and compliance updates.
CBP Seeks Comments on Reclassifying Toys, Medical Devices, USB Hubs
STR Trade Report •January 29, 2026
CBP proposes revoking/modifying rulings to reclassify gumball dispensers as toys (HTSUS 9503; duty-free) instead of plastic tableware (3.4%), certain tumor‑treating transducer arrays as medical instruments (9018; duty-free) instead of other electrical machines (2.6%), and a 7‑port USB 3.0 hub as an ADP unit (8471; duty-free) rather than telecom equipment. Comments are due by Feb. 21, and the changes could remove duties for affected imports and require updates to classifications and ruling citations.
Systems and Border Modernization
CBP Updates ACE Rollout: Duty Calc, Seal Changes, Mail Entry
STR Trade Report •January 30, 2026
CBP updated the ACE rollout schedule to streamline filings and visibility, with a Feb. 17 enhancement to calculate estimated duties when up to 32 HTSUS numbers appear on a single entry line and March upgrades for container seal change notifications, detention record integration, carnet truck manifests, and a pilot using decentralized identifiers for crude oil imports. In-bond modernization is slated for Apr. 4; a new mail entry type with automated duty/fee calculation arrives June 1; air/rail manifest upgrades slip to June and broader ocean/rail modernization plus maritime ACH via pay.gov move to October, while de minimis, sanctions-targeting data, and new online payment options remain on hold. Electronic export manifest submissions remain planned for June 2026.
FDA’s ImportShield Centralizes Reviews, Speeds Entry Processing 66%
STR Trade Report •January 30, 2026
FDA reports its ImportShield program, launched in August 2025, has unified five regional import review teams into a single national operation and is sharing real-time risk alerts across all ports. The shift has delivered 66% faster processing, 33% higher monthly capacity, and 20% fewer staff hours amid rising volume (75 million entry lines in 2025 vs. 58 million in 2024), with an integrated review platform coming that will link tools and databases while maintaining CBP connectivity—promising more consistent screening and fewer delays for compliant importers.
WTO Agenda and Global Trade Policy
WTO seeks MC14 deal on e-commerce moratorium and Work Programme
WTO Latest News •January 27, 2026
WTO members met on 28 January to advance an MC14 outcome on e-commerce, weighing two texts from the ACP Group and a U.S.-led coalition that address extending the moratorium on customs duties for electronic transmissions and revitalizing the development-focused Work Programme. Facilitator Amb. Richard Brown urged proponents to converge on common elements for a draft ministerial decision ahead of MC14 (26–29 March, Yaoundé), with the next meeting tentatively set for 2 March. For digital traders, an extension would preserve duty-free cross-border transmissions and signal continuity in the WTO’s digital trade agenda.
WTO TESSD Finalizes MC14 Sustainability Package Covering Climate, Goods, Circularity, Subsidies
WTO Latest News •January 27, 2026
WTO members in the TESSD have readied a sustainability package for MC14 in late March in Yaoundé, combining a co-convenors' ministerial communiqué, an overarching five-year review, and outcome documents from four workstreams (climate measures, environmental goods and services, circularity, and subsidy impacts) developed by 79 co-sponsors. Final comments are due 30 January for the overarching document and 11 February for the communiqué, with the package set to guide post-MC14 cooperation and influence how members design green trade measures and subsidy regimes.
Record Trade Values, Flat Volumes as AI Goods Lead Expansion
WTO Latest News •January 27, 2026
In Q3 2025, merchandise trade volumes were essentially flat (+0.5% q/q, +3.6% y/y), while the dollar value hit a record, rising 7.5% y/y on higher prices and a weaker USD. AI-related goods (chips and data transmission equipment) rose nearly 20% y/y in value, making up 15% of trade but 42% of growth, alongside import frontloading ahead of expected tariff hikes. Asia led export volume gains while Latin America and Africa posted the fastest import growth, and small open economies such as Chinese Taipei, Switzerland, and Viet Nam recorded standout increases.
China Seeks WTO Panel on India’s EV and Clean Tech Incentives
WTO Latest News •January 26, 2026
China filed its first request for a WTO panel challenging Indian measures that allegedly tie automotive and renewable-energy incentives to domestic content and discriminate against Chinese-origin goods, following failed consultations on 25 Nov 2025 and 6 Jan 2026. India disputed the facts and blocked the first request; the matter is expected to return at the 24 Feb 2026 DSB meeting, putting India’s localization programs for EV and clean-tech supply chains under WTO scrutiny.
